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Scotland’s would-be business owners fear the worst when it comes to funding

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Tim Sawyer
Tim Sawyer

It might not come as a major surprise, but financial fear is the main barrier stopping Scotland’s would-be business owners from starting their own company, according to new research.

The study revealed that 41 per cent of Scottish adults cited financial fears as the main barrier halting their business dreams, with many declaring that they either do not have the funds, or cannot risk their business failing.

The Start Up Loans Company (https://www.startuploans.co.uk), the Government-backed scheme, surveyed 500 Scots to find out the top barriers halting the start-ups.

The main business barriers are:

  • Not having the funds required to successfully set up a business from scratch

  • Being the main earner in the family

  • Avoiding any risks that being self-employed/owning a business can bring

  • Lack of knowledge and experience

  • Fear of the business failing

  • The risk of not being able to meet financial commitments, such as mortgages or other living costs for a period of time

  • Lack of savings to secure a stable income for some time

  • Worries about tax and other elements that self-employed/business owners have to deal with

  • Having a business idea, but not knowing where, or how, to start

  • Family commitments

  • Not having the time to dedicate to a business venture

  • Not knowing where to turn to for business advice

    • Start Up Loans chief executive, Tim Sawyer, said: “Financial fears are always going to be a part of starting a business, but people should know that more and more help is available to alleviate funding pressure.

    “There is a misconception that you have to be a business expert to start your own company. But this isn’t the case. Our job is to educate and empower people with the resources needed to start a business, including mentoring support and help with drafting a business plan.

    “We want to help as many new businesses as we can. It’s not about just handing someone with no prior experience a loan and expecting things to immediately take off,” Sawyer adds.

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