The UK's largest independent finance provider to SMEs, LDF, have published a new report that details which businesses and sectors are flourishing in the UK.
The report lists where the most successful SMEs are as well as where different sectors are clustered and the challenges that they face in growing their business.
The survey of 850 SME owners and decisions makers, states that there are more manufacturing SMEs in Cardiff than there are anywhere else in the UK due to the lower costs of renting and owning property.
The biggest challenge that manufacturing SMEs face, according to the report is insufficient capital when starting up their business with 39% stating that was their biggest challenge. The report also says that on average an SME needed £45,325 to get things off the ground with over a third of correspondents using their personal savings as a source of funding.
On average, since starting up, manufacturing SMEs have needed to borrow £39,886 in the past 12 months, with 45% saying the main reasons they needed the money was to expand. Over a third admitted that cash flow was their biggest worry and one in five bosses at manufacturing SMEs have gone without pay at some point because of this.
Peter Alderson, managing director at LDF, commented: “Over 99% of private sector firms in the UK are made up by small to medium-sized businesses and whilst this sector is clearly thriving, our survey sheds light on the harsh financial realities faced by start-ups and established businesses alike.
“With over half of SMEs (52%) stating that they do not find banks to be business friendly, many experts cite that small to medium-sized business owners are instead turning to alternative finance options as it helps people spread the cost of business investment and expenditure.”