It can be tough to secure funding for your small business, but starting up doesn’t have to cost the earth. According to new research from PeoplePerHour, almost three quarters of small business owners started up their company on £2,000 or less.
In the poll of 5,000 small business owners, 76% said they had used their own savings as startup capital. 13% used redundancy money and 20% turned to friends and family for money. Just 3% managed to secure funding from a bank loan.
PeoplePerHour has reported that the amount of small businesses registering on the site has more than doubled in the past 12 months.
Xenios Thrasyvoulou, founder and CEO of PeoplePerHour said: “It helps that it’s never been easier or cheaper to start a business from scratch, opening up the self employed route to a whole new generation of aspiring entrepreneurs. Businesses are being launched from kitchen tables across the country, as the online revolution has knocked down the barriers to entry.”
However, small businesses are still facing obstacles. Almost half (49%) of small business owners said maintaining cash flow was a concern, and 25% said their main problem was access to funding. Other problems which were raised in the study included a lack of business support, government red tape and recruitment difficulties.