Welsh SMEs

Less than a third of Welsh SMEs consider alternative financing

Only 27% of Welsh SMEs (of 93 polled) have considered means of financing other than by banks, according to a survey by Growth Street.

The business finance provider canvassed 2,006 employees and directors of British SMEs in January 2019.

Other highlights from the survey included:

  • only 28% of the 54 Cardiff respondents had considered alternative finance solutions
  • 54% of Cardiff businesses stated that banks would be their first port of call when seeking new funding, which is three percentage points above the national average (51%)
  • 38% of Welsh SMEs said they had no confidence in their knowledge of finance outside the banks, compared with 32% in Scotland and 29% in Northern Ireland
  • 34% of British respondents said that they were not at all confident in their knowledge of non-bank funding, compared with 45% in the 2018 survey
  • 66% of British respondents had at least some knowledge of finance outside of banks, up from 54% in 2018

Commenting on the survey, Greg Carter, CEO at Growth street, said: “Welsh SMEs are lagging behind the rest of the UK on several fronts, from knowledge of finance outside banks to considering going somewhere other than a bank for their finance.

“We must find a way to engage and educate Welsh business people about alternative finance options if we are to tap into a market that will become increasingly important following Brexit.”

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