Business Banking Insight’s survey of 200 businesses in the hospitality sector found that while 29 per cent of business owners would ask for direct investment from their friends and family, 60 per cent would turn to them for financial guidance.
Further results show that 17 per cent of hospitality businesses would consider peer-to-peer lending if they wanted to expand, compared to the national average of 23 per cent, and that businesses in the industry are more open to using different sources of financial guidance with 37 per cent choosing to use a mentor, 66 per cent turning to a bank and 38 per cent using financial advice websites.
Economic secretary to the Treasury, Harriet Baldwin, said that small businesses in Britain hold the economy up.
“Britain’s small businesses are the backbone of our economy, which is why a key part of our long term plan is making sure they can access the finance they need to grow, create jobs and succeed,” she said.
“Data collected as part of the Business Banking Insight survey shows that our plan is working, and that our smallest businesses are increasingly considering alternative finance providers.”
Mike Cherry, Federation of Small Businesses policy director and spokesperson for the BBI, said: “The BBI can help companies of all sizes get the right finance. Accessing the best product for your business is critical to growth and future investment.
“The BBI should be part of that journey to allow you to see what other businesses like yours have found useful and which providers might be right for your needs.”