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Only 13% of Start-ups Seek Loans from Banks With the Majority Relying on Personal Finances

January 5, 2024

The report, titled Ambitious UK Start-Ups: The Future of UK Business, also showed that support from friends and family (20 per cent) was also more likely to take place than a start-up going to get a bank loan. The data was gathered from over 1,200 firms that took part in the 2023 National StartUp Awards. This is a programme that celebrates the best new firms under three years old, delivered in partnership with Starling Bank.

Discussing the report, professor Dylan Jones-Evans OBE, founder of the UK StartUp Awards, said: “Self-funding their businesses allows entrepreneurs to maintain full control and ownership of their company and avoid debt. By relying on sales rather than external funding for income, bootstrapped businesses will be more customer-focused and have greater freedom to develop without outside interference.

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