A YouGov poll, which surveyed 1,242 small business owners nationwide, found that 51% of Scottish enterprises would be forced to shelve one or more growth initiatives in the coming months if they could not secure the necessary funding. This need is particularly acute amongst businesses anticipating significant expansion.

The growth initiative that is most likely to be affected is investing in the launch of new products and services (34%) – the highest figure in the UK, compared to the national average of 25%. Across Scotland, 31% of small business owners said they would put on hold plans to hire new staff if they were unable to secure funding – whilst others would put off plans to run an advertising campaign or halt their plans to invest in new production lines or machinery.

The growth initiatives Scottish small businesses are most likely to put on hold if they were unable to secure funding

This reliance on finance comes at a time when the ripple effect of geo-political disruption is making it harder for small business owners to forecast organic growth. Nationally, the percentage of UK small business owners predicting growth for the three months to the end of June has fallen to a four-year low (29%) – with significant falls in the manufacturing, construction and retail sectors.

Percentage of small businesses that say they would put growth projects on hold – if they were unable to secure funding

The Novuna Business Finance research also dashes any assumption that access to finance is the preserve of business start-ups. Rather, the Novuna data suggests that established and successful businesses were those most in need of funding to turbo-charge existing growth plans. For example, enterprises that predicted significant expansion over the next three months were far more likely to need funding to power growth than those enterprises trying to overturn contraction (90% Vs 57%). Also, established small businesses with a turnover of £1-10 million were more likely to need finance than start-ups with a turnover of less than a £1m (66% VS 55%).

The Novuna Business Finance research also dashes any assumption that access to finance is the preserve of business start-ups. Rather, the Novuna data suggests that established and successful businesses were those most in need of funding to turbo-charge existing growth plans. For example, enterprises that predicted significant expansion over the next three months were far more likely to need funding to power growth than those enterprises trying to overturn contraction (90% Vs 57%). Also, established small businesses with a turnover of £1-10m were more likely to need finance than start-ups with a turnover of less than a £1m (66% VS 55%).

Joanna Morris, head of insight at Novuna Business Finance, said: “Our research makes clear the immediate and tangible impact of Scottish small businesses not securing funding – job creation put on hold, product innovation delayed and plans to modernise machinery cancelled.

“All this directly contributes to the economic growth – and this is why supporting small businesses at this critical time is so important.

“At Novuna Business Finance, we specialise in supporting established small businesses as an alternative to the high street banks. We offer small businesses in need of capital the ability to finance assets, an alternative that could potentially benefit their overall cash flow and ease pressure on other areas of their budget. With an expert team and award-winning services, we provide access to the financial solutions our customers need and are committed to helping them develop and grow.”