Many have been forced to downsize or remortgage their property, with some having to sell completely and move back in with their parents, according to a study of 2,000 business owners by office supply company Viking.

Some 32 per cent also say that they have personal debt, such as loans or credit cards, tied in with the business.

Furthermore, 43 per cent of company owners consider that running their own business has a negative impact on family life.

John O’Keeffe, commercial director at Viking says, ‘The implications of having to sell or remortgage a property are substantial, not just concerning business, but with family too.

‘The issue here is with regards to funding – it is inspiring to see that so many entrepreneurs are deciding to start their own business, but it is apparent that there is a lack of money available to support these businesses.’

Further feedback shows that a third believe that lack of funding is the major reason behind small business closures.

O’Keeffe adds that there are encouraging signs for the future, especially with the recent growth in GDP and the fact that even when people are made redundant they are still driven enough to then want to move on and start their own business.  

‘It is important to encourage those wishing to start a business and demonstrate that it is possible and increasingly so, as the economy starts to show slight growth and hopefully as a result funding will become more accessible.’

One in four business owners are optimistic for the business outlook and anticipate future growth with a further 53 per cent reporting that they anticipate maintaining a current state of play in the immediate future of their business.