Half of British business owners (50 per cent) do not know the best option for financing their business, according to recent research from business launchpad platform, Start My Business.
Start My Business commissioned the polling of 500 CEOs and decision makers, via Censuswide, for UK businesses, to observe the financial understanding and awareness of business owners in a post-Covid world.
It was revealed that younger business owners in particular were the most ‘out of the loop’ when it comes to their financial awareness, with 57 per cent of owners under the age of 35 admitting that they do not know where to turn when it comes to acquiring external business finance or funding.
Furthermore, 61 per cent of all owners surveyed do not know how to access finance options beyond traditional banks. This figure is significantly higher amongst larger companies (over 50 employees), with two thirds of owners left feeling unsure about how to access finance options beyond traditional methods.
However, the surveyed business owners expressed a desire to better understand financial processes. In fact, 49 per cent said that they want to learn how to manage their cash flow more effectively, whilst 38 per cent said tracking the financial health of their business was the area they wanted to upskill most in the immediate future.
As part of the research, it was also revealed that bank account apps are the most popular service used by owners to track the financial position of their business, with 55 per cent relying on such apps.
In tandem with banking apps, half of CEOs rely on accounting software, whilst 37 per cent incorporate Excel spreadsheets into their financial tracking process.
Shoaib Aslam, Founder and CEO of Start My Business, commented:
“Understanding your options when it comes to business finance is vital to any successful start-up or established business, and it is disappointing that there is such a lack of guidance and support to help business owners realise their options. With small business in particular so important to the economy, the government should be front and centre in highlighting business finance options, especially amidst the cost-of-living crisis.
“Part of the issue for business owners is that all of the tools they need are spread between banking apps, accounting software, and a whole host of other services required for a successful business, adding to the complication of the business finance process.
“Services like Start My Business are essential for streamlining a plethora of tools and advice, helping to simplify and provide guidance on core business components, such as business finance, pointing business owners to their best options in order to help fuel their company’s growth.”