# British SMEs face uncertain funding future Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2017-07-21 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Survey Reveals Concern Among UK SMEs over Funding for Brexit Meta Description: Discover how Hiscox can help your SME navigate uncertain times with our essential guide to funding options available in Britain URL: https://financedigest.com/british-smes-face-uncertain-funding-futurehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/img0087-1941-1736843681817-compressed.jpg) - Thirty-five percent of small businesses express concern over lack of funding options - One in five businesses unaware of funding options available to them - Thirty-eight percent of UK SMEs rely on EU funding SMEs in [Britain are increasingly concerned over their ability to gain funding in the run up to Brexit](https://www.financedigest.com/brexit-has-added-6-to-britains-food-bills-researchers-say.html "Brexit has added 6% to Britain’s food bills, researchers say"), a recent survey has revealed. The study, commissioned by specialist insurer Hiscox, has found that recent [economic and political](https://www.financedigest.com/stocks-tumble-globally-on-raft-of-economic-political-worries.html "Stocks tumble globally on raft of economic, political worries") uncertainty has adversely affected business confidence, and caused concern for the future as Britain’s withdrawal from the EU becomes nearer. This should come as no surprise, as 38 percent of the 500 businesses surveyed admitted to accessing EU funding. [**Facing funding challenges**](https://www.financedigest.com/overcoming-challenges-faced-in-business-from-one-woman-to-another.html "Overcoming challenges faced in business: from one woman to another") Despite many funding options being made available to new businesses, 36 percent of business owners said a lack of choice was the most common [single challenge](https://www.financedigest.com/financial-challenges-for-single-parents-overcoming-obstacles-and-building-stability.html "Financial challenges for single parents: overcoming obstacles and building stability") they faced when looking for funding. Moreover, 28 percent of businesses cited a lack of eligibility as the reason holding them back from obtaining finance and a further 25 percent said [market competition was their key](https://www.financedigest.com/automotive-mems-sensor-market-key-manufacturers-development-trends-and-competitive-analysis-2028.html "Automotive MEMS Sensor Market Key Manufacturers, Development Trends and Competitive Analysis 2028") challenge. Surprisingly, what emerged from the survey was that one in five businesses (20 percent) was still unaware of the variety of funding options available to them. In order to help businesses through the apparent uncertainty of business funding, Hiscox has created an essential guide to funding for SMEs, available here : [https://www.hiscox.co.uk/business-blog/funding-a-business-guide/](https://www.hiscox.co.uk/business-blog/funding-a-business-guide/). **Banks still the “go-to” for funding** Despite the arrival of new finance options for start-ups like crowdfunding and peer-to-peer loans, most [small businesses](https://www.financedigest.com/reasons-to-obtain-iso-9001-certification-for-small-businesses-in-australia.html "Reasons To Obtain ISO 9001 Certification For Small Businesses In Australia") still turn to banks. Three-quarters of [businesses surveyed used bank](https://www.financedigest.com/two-speed-economy-in-sweden-central-bank-business-survey-shows.html "Two-speed economy in Sweden, central bank business survey shows") loans for funding over the last five years. Other popular [funding](https://www.financedigest.com/global-equity-funds-see-large-outflows-on-slowdown-worries.html "Global equity funds see large outflows on slowdown worries") choices were EU funding and equity funding (both received by 38 percent of businesses over the last five years). **[Economic uncertainty plagues Britain’s](https://www.financedigest.com/new-pm-rishi-sunak-pledges-to-lead-britain-out-of-economic-crisis.html "New PM Rishi Sunak pledges to lead Britain out of economic crisis") SMEs** The survey looked at other factors influencing the financing of Britain’s small businesses. Almost a third (31 percent) of businesses surveyed said economic uncertainty had been the biggest [factor impacting their growth](https://www.financedigest.com/sterile-vials-market-share-and-growth-factors-impact-analysis-2021-2031.html "Sterile Vials Market Share and Growth Factors Impact Analysis 2021 – 2031") in the last five years. In fact, 18 percent more businesses found economic uncertainty affected their [growth than competition within their own industry](https://www.financedigest.com/industrial-catalytic-converters-market-competitive-growth-strategies-based-on-type-applications-end-user-and-region.html "Industrial Catalytic Converters Market Competitive Growth Strategies Based on Type, Applications, End User and Region") (13 percent). Another cause of concern for Britain’s businesses is the availability of skilled workers, with 10 percent of businesses facing obstructions to their [growth due](https://www.financedigest.com/uraemia-treatment-market-is-expected-to-register-significant-growth-due-to-increasing-diabetic-population.html "Uraemia Treatment Market Is Expected To Register Significant Growth Due To Increasing Diabetic Population") to a lack of skilled personnel. With the Institute for Public Policy Research finding that employers in Britain are currently spending over £6 billion less on training per year than the EU average, and the prospect of visa complications for foreign workers following Brexit, the growing skills’ gap could further hinder [business growth](https://www.financedigest.com/euro-zone-business-growth-slowed-in-may-as-factories-struggled-pmi.html "Euro zone business growth slowed in May as factories struggled-PMI") in Britain. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---