Credit Access Top Concern For Startups

12 Mar 2018 | 09.55 am

Credit Access Top Concern For Startups

Access to funding is biggest concern, says Big Red Cloud

12 Mar 2018 | 09.55 am

Access to credit is still a big concern for SMEs, who believe that the situation has worsened in the last two years, according to a survey carried out by Big Red Cloud.

The Dublin company, which supplies online accounting software, recently surveyed more than 250 business owner and managers throughout Ireland. It found that access to credit was cited as the dominant barrier for new businesses.

The survey asked respondents to identify the primary challenges faced by entrepreneurs, as well as the main hurdles faced by already established SMEs. Big Red Cloud compared its latest findings with a similar survey carried out 24 months ago to assess what’s changed.

The survey findings are listed below:

Notable among the findings is the continued identification of access to credit as the biggest challenge for new and established businesses. Taxation concerns, by contrast, are significantly down in both business segments when compared with 2016’s survey results.

Marc O’Dwyer (pictured), CEO of Big Red Cloud, said that sourcing the funds to propel a business forward is always a challenge, but is increasingly so for more numbers of business owners. “One might have assumed that credit issues would not be as pronounced, with the economy improving as it has been,” he added.

“I think one of the key points to emerge from this survey is that ‘red tape’ issues are a primary concern for SMEs in Ireland. Regulation and compliance shouldn’t be as big a challenge as access to credit, but it is,” O’Dwyer continued.

“The fact that 58% of respondents believe that lack of government support, taxation policy and the meeting of regulation and compliance standards are stymying development in the sector is very telling. While ‘staffing’ places last on the list, it should not be ignored that 13% of the businesses we surveyed say it is the number one challenge for established SMEs.”

O’Dwyer stressed that Ireland needs to nurture its emerging business sector. “There are thousands of people out there who put their necks on the line every year in the hope of starting a commercial enterprise, that will not only provide them with income, but will also employ people in their region, and support other indigenous businesses.

“If supporting our established SMEs is a natural step in good fiscal planning, then encouraging our startups is the next piece of the puzzle.”

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