18% of small business owners have turned to alternative financial providers, other than their bank, to stay in business, according to research from More Th>n Business.
It also found that 58% of small business owners fear they will go out of business in the event of a double-dip recession.
Friends and family top the list of alternative sources with 10%, following by credit cards (7%) and loan companies (7%)
Across the regions it is small businesses based in the North that have been worst affected – they saw a 1.1% rise in costs during Q2 2010 and a 6% rise over the last year. Both the Midlands and Wales and Scottish regions endured a rise of 0.6% in the last quarter while businesses in the South fared best with just a 0.3% rise.
To save money, one third of small business owners have had to make cuts in and around the workplace. 47% have reduced the use of basic utilities such as water, gas and electricity, while 38% have cut back on staff refreshments including tea, coffee and biscuits. Travel expenses have also been cut by 38% of small business owners.
Mike Bowman, head of More Th>n Business said: “The continued pressure on costs means that SME cash flow is suffering and in a slow recovering economy
