A further 22 per cent believe they need to take on more staff to help the business mature, according to a study by Amigo Loans.
In a bid to expand, 18 per cent of microbusinesses will borrow from friends or family.
However, more than a fifth (21 per cent) don’t have any idea how they will grow in the future and a further 15 per cent think growth just isn’t possible for them at the present time, with one in six forced to take out a payday loan to fund their business venture.
Companies are trusting their instincts however, with a third (33 per cent) saying their own business acumen helped them grow within the first year of existence.
For a quarter (23 per cent), the key was setting up at the right time and meeting customer demand. A further 11 per cent got by with a little help from their friend, saying having a good business partner helped them grow.
James Benamor, founder and CEO of Amigo Loans says, ‘We talk a lot about start-ups and how we can help businesses get off their feet but growth of a business is what keeps it afloat, what brings about new prospects and helps owners feel secure about the future.
‘Growth can only happen when small businesses aren’t crippled by the clutches of payday loans and their extortionate APRs. We want all small businesses to shop around before resorting to payday – there are better funding options available, through credit unions, guarantor or peer-to-peer lending.’
Further reading on raising money
