Member Article

Small firms lacking encouragement from banks

More than a third of small business owners think banks are only interested in helping large companies, according to a new report. The study by Yorkshire Bank found that 36% of small businesses believe banks do not cater well enough for them. The research also found that 42% of entrepreneurs set up a business in a field alien to their own experience, and only 27% have prior managerial experience. The bank said this made it particularly worrying that small firms felt unable to turn to banks for support.

Gary Lumby, head of retail and small business at Yorkshire Bank, said: “The prospect of running your own business – free from the usual gripes and office politics – is very appealing to many people. The idea of being in control of your financial future and having more personal time only adds to the attraction. But it can be very lonely at the top if you can’t access trustworthy, experienced advisors.”

According to the report 37% of entrepreneurs who set up their business to be their own boss admit they miss the comfort zone of having a sounding board when making business decisions, and 41% said they found it hard to find the time to market themselves.

However, cash flow seemed to be the biggest concern for small business owners, with 62% citing it as the biggest worry, while nearly a fifth admitted to fretting about compliance with EU legislation.

This was posted in Bdaily's Members' News section by Ruth Mitchell .