When we surveyed 100 high-growth companies, we identified 59% who said they had not had access to sufficient finance and funding to support their growth rate (growing faster than 20%+ pa). We went on to question them about the consequences of that lack of funding and these were their responses:
- 40.7% – Had to turn down business
- 22.0% – Now owe money
- 13.6% – Became loss-making
- 8.5% – Had to get rid of staff
- 5.1% – Experienced poor cash flow
- 3.4% – Didn't grow as predicted
The key issue this identifies is the link between the lack of finance available to fast-growing companies, the loss of business in the UK and the loss of UK jobs – both essential to growing the UK economy and continuing its recovery. Plugging the funding gap for high-growth companies should be a priority – these businesses are already outstripping the average GDP growth rate in the UK, and with more funding, they can contribute even further.