Faced with an emergency, more small business owners to turn to family ahead of banks for financial help. Forty-six per cent turn to family during the crisis compared to 40 per cent who turn to banks, according to a Liberis survey.
And over a third (35 per cent) said they turn to the Bank of Mum and Dad specifically, while one in five (19 per cent) said they turned to close friends.
More than a third (37 per cent) of small business owners have taken on a second job to keep their businesses afloat, and more than a quarter (28 per cent) have considered doing this.
Going without food
Rob Straathof, CEO of Liberis, said: “There has already been record levels of lending to SMEs during the pandemic, with the British Business Bank finding almost half of the applied-for external financial support last year. While government-backed programmes provided a much-needed stopgap, many SMEs are still turning to family, friends and second jobs to get them through. With these schemes coming to an end and traditional banks expected to reduce SME financing, small business owners need more options.”