Young business leaders willing to borrow in order to grow
MOST young business leaders are willing to borrow finance externally in order to achieve growth, according to new research.
The survey conducted by Nucleus Commercial Finance found that 57 per cent of 16-29 year old decision makers are planning to access additional funds in the near term.
In addition, 61 per cent of that group said that they would experience damage/detrimental effect to their business if they’re not able to access the funding they require.
The alternative business finance provider said this pro-active approach could be key in building businesses’ financial resilience.
Only 17 per cent of young business decision makers have cash reserves that would last more than a week if their business was suddenly and unexpectedly unable to trade.
This figure falls to 13 per cent across all businesses, demonstrating the financial precariousness of many businesses.
“Young business leaders have grown up in an environment of economic uncertainty, but are taking brave steps by running their own businesses,” said Chirag Shah, chief executive of Nucleus Commercial Finance.
“They are the future of our economy’s success and through their entrepreneurial endeavours are significantly contributing to business and society.
“It’s crucial that both they and their businesses are supported, enabling them to thrive and invest in future growth.”
Although young business leaders are willing to borrow funds they are also the most fearful group of owners.
Over a third are concerned about a repeat of 2008’s financial crash and 38 per cent are worried about the impact of Brexit.
Read more: Nucleus launches new cash flow product