Company finance

Small growth firms face funding shortage

Money

A gap is emerging in supply and demand

Smaller businesses are facing a shortage of available funding to support their growth plans, according to new research.

A majority (84%) of advisers, including accountants and lawyers, quizzed by the British Business Bank believe there are gaps in the supply of finance at all stages of company growth.

Nearly three-quarters (71%), said the demand for finance outweighs the level of supply.

Respondents said small businesses will require additional finance over the next 12-18 months because of the Covid-19 pandemic.

Anticipated demand for additional early-stage equity investment over the next 12-18 months was found to be significantly higher in Scotland (81%) than the rest of the UK (68%), while 79% also agreed that small businesses would require additional growth stage equity or venture capital.

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