Over 80% of small business applicants fail to obtain grants or investment.

The challenges faced by startups and small businesses in securing funding are staggering, with over 80% of applicants failing to obtain grants or investments, and approximately 40% unable to secure loans. This harsh reality contributes to a concerning statistic: 60% of businesses fail within 5 years.

Consider the scale in the UK alone, where about 5.5 million small businesses operate, with nearly 700,000 new companies established annually and 400,000 to 500,000 new sole trader registrations each year. However, the high failure rate comes at a steep cost for the economy, impacting GDP growth, innovation, employment, and tax revenues.

The aftermath of these failures extends beyond mere numbers, with indirect losses estimated at over £90 billion (e.g. lost jobs, innovation, productivity, and tax revenue), potentially reaching hundreds of billions over time. This detrimental effect underscores the importance of initiatives like the FixFunding campaign, aiming to address fundraising challenges and build a more resilient startup ecosystem to foster economic growth.

The urgency of this campaign lies in preventing the widening gap between the necessary funding for economic expansion and the current inadequate levels. Without effective solutions, the viability of future generations of businesses and the economy at large will be at risk.

Stay tuned for a series of upcoming blogs. The first on fundraising challenges, is scheduled for next week. Your insights and contributions are valuable, so please share your thoughts as I delve into this critical topic. https://lnkd.in/e4dRqke5