Nearly 40% of small business owners and social enterprises are beginning to feel the effects of the worsening economic condition in the UK, new research has found.
The study, commissioned by social entrepreneur website www.UnLtdWorld.com, found that 40% of almost 1000 small business owners polled said they have experienced cash flow difficulties in the last few months. The respondents went on to speculate that they believe it’s a direct result of the credit crunch.
Along with facing everyday financial woes, securing finance appears to have become more difficult too: nearly 70% of those who had recently applied for a credit card or a loan were turned down.
As a result, 21% claimed their business had been badly affected by the recent financial problems in the UK.
Speaking about the research, Alberto Nardelli, chief strategist at UnLtdWorld, commented. “We wanted to get a better understanding of the real financial position faced by many small business owners and social entrepreneurs. To some extent, the outlook seems quite bleak for now.”
© Crimson Business Ltd. 2008
