Almost a third of small firms have been tempted to cease operations in their early stages due to a lack of start-up business advice, it has emerged.
Findings from NatWest and Smarta.com show that many companies do not have the right tools at their disposal to manage themselves effectively.
During their first year of trading, 61 per cent said that cashflow was their major problem, while 40 per cent admitted to over-estimating their sales.
Dragons’ Den star Theo Paphitis commented: “Many small businesses lack the time and money to get essentials such as business plans, accountants or websites in place.”
He emphasised that the country now needs small businesses to thrive more than ever as it emerges from recession.
Research from Clydesdale and Yorkshire Banks recently found that 15 per cent of small firms struggle with understanding new regulations and legislation brought in by the government.
- Running a Business News from Lawpack: start-up business advice on setting-up and running a business.
Published on: May 26, 2011