Two-thirds of small business founders are confident their businesses will be in a stronger financial position in six months’ time, research has found. A poll, of 450 new business owners, found 61 percent already feel more comfortable with the state of their firm now, compared to earlier in the year.
And 95 percent expect to grow in the coming 12 months, as they intend to make at least one new hire – while eight percent reckon they’ll grow their team by at least eight people.
It also emerged 38 percent believe the Government has created an environment in which their business can thrive.
The bi-annual Founder Barometer was created by Virgin StartUp, whose managing director, Andy Fishburn, said: “It’s important to hear directly from small business owners and start-ups.
“Despite a testing year, it’s encouraging to hear that many business founders are invigorated, and are heading into the new year with a positive outlook. The business community is no stranger to dusting itself off, and tackling hurdles head-on.
“But now more than ever, with several challenging economic issues surrounding us, we need to be honest with ourselves, and look at how and where organisations and our peers can support one another through what are undoubtedly unsure times.”
The research also polled founders about the biggest challenges they face – which included the cost-of-living crisis (29 percent), the risk of recession (22 percent), and tax hikes (21 percent).
Others cited rising business rates (19 percent), access to skilled workers, and a lack of funding (both 18 percent).
And to help better support their business, founders said more access to start-up loans (27 percent), increased investment (24 percent), and corporation tax cuts (20 percent), would help them boost their fledging entrepreneurial endeavours.
It also emerged that, in order to grow their business in the past 12 months, founders have been using a number of creative options – including using personal savings (40 percent), a start-up loan (24 percent), and friends and family (23 percent).
Meanwhile, 31 percent said access to venture capital and investors was a source of support missing for underrepresented founders – including female, black, minority ethnic, and disabled founders – with 24 percent saying the same about industry events and press coverage.
Andy Fishburn added: “We have always been proud to offer a voice for the start-up community, and particularly those from underrepresented backgrounds.
“We know that more support, including funding, is always required, and we have committed to helping many more exciting and brave founders reach their potential.
“We’re committed to standing shoulder to shoulder with founders, in both the good times and the bad. Put simply, we want to be a business for good, now and always.”
