Public sector funding sources for small firms dry up

According to the research, nearly two-thirds (64%) of public sector-based sources in the North West of England have closed between Summer 2010 and Summer 2011, with half closed in the Midlands. 

 

A "staggering" 84% of grant schemes in the East Midlands have closed since last Summer, though a vast majority of UK regions had seen the number of grant schemes available reduce by at least 20% over the year.

 

BusinessFunding.co.uk concluded the trend “looks set to continue,” and called for small businesses and start-ups in the UK to diversify their options when looking into funding. The service revealed options included asset-backed lenders and equity investors, which have so far provided UK companies with up to £500m in funding during 2011.

 

Publication of the research comes as the website launches with the objective of helping small businesses and start-ups look for funding options. BusinessFunding.co.uk will track and monitor over 1,000 UK funding sources, including business angel networks and general business loan providers.

 

Dr Stephen Bence, founder and director of BusinessFunding.co.uk, said, "We were often being asked to compile lists of properly-qualified funding sources for a particular project or company. We found these tasks incredibly time-consuming because the information could not be found in one place - not to mention the complexity of the funders' eligibility criteria. 

 

“This is our solution to that problem: a comprehensive and detailed database of funding sources coupled with an easy-to-use online tool to help direct businesses towards the sources of funding and finance that are most suitable for them".