Economic and Business Research

Sept. 17, 2011 - PRLog -- That was the finding of a survey conducted by the think-tank, the Centre for
Economic and Business Research (CEBR).

Polling some 750 enterprises employing 20 workers or fewer, the CEBR reported that,
on average, business owners have been directing £20,000 from personal assets into
their firms.

Of those who responded, 27 per cent admitted to requesting loans from family and
friends in order to keep the businesses solvent.

A similar proportion (26 per cent) conceded that they had taken out personal
overdrafts or bank loans, or had turned to their credit cards, to maintain their
business activities.

More alarmingly, 13 per cent had re-mortgaged their homes to provide their
businesses with liquidity.

The survey was carried in partnership with price comparison website, Make It Cheaper.

Make It Cheaper's chief executive, Jonathan Elliot said: "It is extremely concerning
that small business owners have been compelled to take the drastic step of placing
their own financial stability in jeopardy to keep the company afloat.

However, many small businesses feel they have no alternative, as costs rise and
traditional lines of credit remain cut off. It is no surprise that so many are
turning to personal loans and credit cards to survive."

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Article sourced from:
Gibson Hewitt

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