Third of hospitality business owners turn to close relations for investment

By Liam Garrahan contact

- Last updated on GMT

Third of hospitality business owners turn to close relations for investment

Related tags: Economics, Investment

Hospitality business owners are likely to consider a wide range of options when seeking information about expanding their businesses with just under a third choosing to approach their friends and family for investment, a report has found.

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.”

Related news

Show more

Related products

show more

Align reopening plans with customer expectations

Align reopening plans with customer expectations

Shield Safety Group | 15-Jul-2020 | Technical / White Paper

Understanding the customer is a key step in reopening your business. Customers want to experience a worry-free, relaxing environment and ultimately feel...

A Step by Step guide to higher Revenue & Margins

A Step by Step guide to higher Revenue & Margins

EatDirect | 19-Jun-2020 | Technical / White Paper

There are not many industries where the cost of customer retention is the same as acquisition. Unfortunately, in the online food ordering market, too many...

How to reopen safely with mobile ordering

How to reopen safely with mobile ordering

Yoello | 09-Jun-2020 | Application Note

There can be no denying that the rise of coronavirus has changed our industry - perhaps for a matter of months, or perhaps forever.

Related suppliers


Follow us

Hospitality Guides

View more

Featured Suppliers

All suppliers

Free Email Newsletter

Subscribe to BigHospitality

The trusted industry reference point

Get the latest news & analysis from the UK hospitality sector straight to your inbox!