Read more: See hereMore than two in five (44%) London based small and medium sized enterprises ("SMEs") have had to stop or pause an area of their business because of a lack of finance over the last couple of years.
This is according to new research commissioned by Manx Financial Group PLC (AIM:MFX), the financial services group which includes, amongst other operating subsidiaries, Conister Bank Limited ("Conister"), Conister Finance ⁘ Leasing Limited and Blue Star Business Solutions Limited.
The most common activities that London based SMEs have been forced to pause or stop because of a lack of financing were marketing, opening new offices or sites and launching new products.
Manx Financial Group's research showed that nearly a third (31%) of UK SMEs as a whole have paused an area of their activity and while this has decreased from 40% in 2023, one in ten SMEs that looked to secure external finance and/or capital were unable to access it. In London this number was 12%.
This limited access to finance poses serious risks for both SMEs and the broader UK economy , particularly in terms of growth during uncertain times when support is most needed. The economic impact is significant, as SMEs contribute to about half of all private sector turnover in the UK. Innovative solutions are urgently required to address this funding gap.
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