Accountancy firm EY’s latest Fast Growth Tracker shows 51% of UK entrepreneurs are expecting to increase their revenues by 50% in 2019 – but are struggling to find investment. Tony McDonough reports
Entrepreneurs running fast-growing companies are being held back by a lack of funding options, a new study reveals.
Accountancy firm EY’s latest Fast Growth Tracker shows 51% of UK entrepreneurs are expecting to increase their revenues by 50% in 2019 – but are struggling to find a suitable investment. The survey interviewed 380 founders and executives.
While 66% said they were still hungry for capital, the number of entrepreneurs who said they wanted to raise funds has fallen since last year – down from 71%. Of those who wanted to raise funds, 81% were looking for a minimum of a £5m cash injection and 19% up to £10m.
According to the Tracker, finding suitable investors continues to be an issue for business owners, with 37% still struggling to find a match for their enterprise. 75% said they favoured traditional equity financing via venture capital firms, compared to new pools of capital such as crowdfunding and initial coin offerings.
Notably, crowdfunding was quoted as a more viable funding source by one in five entrepreneurs than traditional bank financing – 19%.
Victoria Price, EY Entrepreneur of the Year lead partner in the North, said: “Entrepreneurs are vital contributors to the UK economy, creating wealth and jobs in all corners of the country, fuelling inclusive growth. They have an unrivalled drive and ambition to expand and innovate.
“With their positivity and ability to spot opportunities in challenging times, entrepreneurs will help to lead the way through the uncertainty that lies ahead.
“With such an important role to play in boosting confidence, it is important that we maintain a supportive environment in the UK that supports their expansion plans.”