SMEs' fear of refusal prevents funding requests

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It seems that some entrepreneurs are a wary lot, as they don’t consider asking for business funding for fear of refusal.

 

 

A BDRC Continental survey found that in the first quarter of 2013, some 63 per cent of respondents were reluctant to ask for cash. 

 

But what happened to the adage “you’ve got be in it to win it”?

 

Only 39 per cent of small and medium-sized enterprises (SMEs) are using external finances, the study showed, down from 50 per cent year-on-year, Real Business reports.

 

What’s more, some 41 per cent of those questioned can be defined as “permanent non-borrowers” – according to the survey – businesses that don’t use external finances and show little inclination of doing so in the future.

 

The odd thing is, there are initiatives out there to help fund SMEs in order for them to grow. This means, as it has been said before, more work is needed to be done by the government to encourage entrepreneurs to borrow for growth.

 

Posted by the Secret Businessman