Around 40 per cent of small businesses in the UK say they are unhappy with their recent performance, according to new research.
The survey that canvassed the opinion of SME owners and senior management from a variety of sectors in the UK, found that many companies felt they could be more innovative and proactive when it comes to identifying growth opportunities.
The study also revealed that 38 per cent of those asked intend to seek additional funding for growth within the next 12 months, but of that figure, more than half were concerned that their request for finance would be turned down by their bank.
This latest research among SMEs seems to be backed by the latest figures from the Bank of England, which show that the Funding for Lending Scheme performed poorly again in the second quarter of this year.
The initiative, designed to give companies greater access to finance to help them expand, saw net lending by banks involved in the programme fall by £3.9bn between April and June, dropping below the drop of £2.7bn in the first quarter.
While net lending to small and medium-sized enterprises (SMEs) shrank by £435m, compared with a fall of £719m in the first quarter, according to the Bank’s latest figures.
Under the FLS, banks can access cheap loans on the condition they lend to businesses. They can borrow £5 from the Bank for every £1 of net lending to SMEs.
John Longworth, Director General of the British Chambers of Commerce, said: “Although the decline in lending to SMEs was less than in the previous quarter, Funding for Lending continues to disappoint.”
