Three quarters (75%) of UK small businesses have been rejected by banks when trying to access funding, according to independent research commissioned by Capital on Tap.

The research discovered that access to funding was especially difficult among smaller and micro businesses. Over two fifths (43%) of sole traders have had funding requests rejected while 44% of organisations with 10-49 staff experienced the same fate.

The study also revealed that almost half (48%) of UK small businesses have been left waiting for more than two weeks to receive a funding decision from banks, while more than a quarter of firms (27%) have had funding requests rejected outright.

David Luck, CEO and founder at FinTech Capital on Tap, said: “It’s clear that banks are denying small businesses the chance to fulfil their growth opportunities. Typically, smaller businesses have limited access to credit so the importance of having a facility that can provide a quick cash injection to invest in equipment or make the most of a busy trading period is essential to stability and future growth.”

The research also revealed that there is a strong diversity in the types of credit that businesses are looking to secure. The most popular funding application was for term loans (51%) with overdrafts (28%) and business credit cards (19%) also being very popular options. Out of those companies that had sought funding in the past five years, the majority (35%) had been looking to secure relatively modest amounts of funding, generally under £5,000.

“What we see from the study is that businesses are generally looking for small, flexible credit facilities, whether at times of need or opportunity. This is exactly where banks struggle to service the millions of SMEs in the UK as they are geared for consumers or large corporate clients. The next generation of entrepreneurs expect the flexibility and quick service from banks that they can attain in their personal lives, which includes easy access to funding. We are seeing the success of alternative lenders in the UK because there is a clear demand for this type of fast, transparent service.”

(Source: Capital on Tap)

The answer is that they are so much more. In a study released today, Dun & Bradstreet revealed data that uncovers the changing role finance leaders play in stewarding their organisation’s customer experience, a mandate traditionally viewed as one of the chief marketing officer. Because positive business results are often fuelled by great customer experiences, chief financial officers are increasingly using data and analytics to become customer-obsessed to ensure their organisation’s customer strategy is rooted in insights that will drive favourable outcomes.

The Customer-Obsessed Finance Leader, a study commissioned by Dun & Bradstreet and conducted by Forrester Consulting, found:

• 36% of company finance executives surveyed were identified as customer-obsessed Leaders, making customer-focused initiatives a top priority this year and reporting increases in customer acquisition, retention, and satisfaction.
• Customer-obsessed finance Leaders reported year-over-year increases in revenue, profitability, and cash-flow at a rate of 10 to 30%age points greater than their less advanced peers.
• Data and insights-driven companies are 39% more likely to report year-over-year revenue growth of 15% or more.
• 79% of customer-obsessed Leaders indicated that their organisation will likely increase spending on technology applications to support customer engagement.
• Implementation of a customer-obsessed strategy requires mastery of seven data competencies that must be aligned across people, processes, and technologies.

CFOs, with their leadership position, cross-organisational perspective, and ability to understand complex sets of data, are uniquely positioned to implement insights-driven behaviours and processes within their organisations. Investing in the right tools and technology, as well as augmenting internal data with third-party data and analytics are some of the key actions leading finance executives are taking.

Challenges to becoming truly customer-obsessed persist; disconnected strategies within the organisation, disparate data, inconsistent metrics, and a lack of investment in technology are among respondents’ most cited obstacles.

The study further outlines seven critical data competencies to master, qualities and resulting metrics that set customer-obsessed finance leaders and followers apart, and how-to strategies to focus efforts around using data and analytics to become a customer-obsessed organisation.

The survey, fielded within North America, Europe, and Asia Pacific in February 2017, included feedback from 250 finance executives (CFOs or EVPs of finance) from companies in multiple industries generating $150 million or more in revenue.

(Source: Dun & Bradstreet)

While the threat of cybercrime is at the forefront of SME owners’ minds, ‘cyber recovery’ is not, according to a new study, The Business of Cyber Recovery, by PolicyBee. Five hundred UK SMEs were asked about their preparedness for cybercrime and its aftermath: one in three believe that a cyber-attack on their business is a matter of ‘when’ not ‘if’, and quarter believe an attack is ‘likely’.

However:

• 74% have not put any budget aside to deal with the aftermath.
• 43% will react if and when a cyber-attack happens and have absolutely no plans in place.
• Just 14% of all SMEs have a detailed plan which covers all bases and crucially have tested that plan.

Sarah Adams, cyber insurance expert, who commissioned the study for PolicyBee, said: “Large corporates will all have a ‘what if’ plan in place that has been stress tested via a crisis simulation or role play exercise. They will know exactly what to do in the event of a cyber-attack. However, small businesses seem to be chancing their luck and despite expecting to be hacked, aren’t preparing to be prepared.

“The difference between a large and small company is that at least in the short term, no single individual will lose their income in a big business - but in a small business, their day to day livelihood could be altered dramatically within a scarily short space of time.”

Businesses in denial

Younger respondents seem more aware of potential cyber risks - as business owners get older they think a cyber-attack is less likely: 22% of 18-34 year olds think a cyber-attack is unlikely; 41% of 35-54 year olds and 56% of 55+ year olds.

Business in the South West and East of England are most in denial of a cyber-attack - those in London and the NE are the most switched on.

Similarly, sole traders believe they are least at risk from a cyber-attack: 71% say it is unlikely; 32% of businesses with 10-49 employees and one in five of businesses with 50-249 employees.

Adams continued: “More mature sole traders in the South West and East Anglia seem to be in the most potentially vulnerable group. If you are one of these people, it would be well worth looking at your business’s potential to become the next cyber victim, and how you’d continue to operate afterwards.”

IT and management consultant firms more switched on to cyber recovery

Interestingly, SMEs operating in the IT and management consultancy sectors had a much more realistic attitude to cyber-attacks:

• only 24% of IT businesses say an attack is unlikely (48% say likely)
• 16% of Management Consultants say an attack in unlikely (51% say likely)

SMEs not ostriches

According to PolicyBee, who provides cyber insurance and other business insurance to freelancers and small businesses, the study highlights the fact that SMEs are simply too busy running their day-to-day operations.

Adams concluded: “It’s not the usual case that all SME owner-managers are burying their heads in the sand, as the study shows some awareness of the possibility of an attack amongst some groups. It’s more that these busy owner-managers haven’t prioritised any time to deal with the aftermath of an attack. We’re all familiar with the terms cybercrime; cyber-attack; and hackers; but we need to make ‘cyber recovery’ part of the general discussion now too.”

(Source: PolicyBee)

The world's 500 largest family businesses account for a combined USD 6.8 trillion in annual sales, enough to be the third-largest economy in the world (surpassed only by the US and China) and employ nearly 25 million people. These and other findings were released in the biennial Global Family Business Index compiled by the University of St. Gallen, Switzerland, in cooperation with EY. The study highlights the 500 largest family businesses in the world by revenue.

Peter Englisch, EY Global Leader, Family Business Center of Excellence, says: "Behind a successful family business there is usually a story of hard work, dedication, inspiration and sacrifice. It may even be a tale of someone achieving great things and superior growth against incredible odds. Family businesses have the potential to be better, to differentiate themselves in the market, to be more agile in a changing environment, to invest more in innovation and to have superior attractiveness to talent. Family businesses in the US and Germany succeeded in realizing their full potential and became home to more than 2/3 of all Top 500 largest family businesses in the world."

The index reveals that by geography, Europe leads with 44.8% of the index companies calling the continent home, followed by 27.8% of family businesses domiciled in North America.

Thomas Zellweger, Chair of Family Business at the University of St. Gallen, says: "The prevalence of large family businesses in the US and Europe challenges the idea that the widely held and manager-run company should suppress all other forms of economic organization. Family businesses are thus a future-oriented way of organizing economic activity, and the businesses on the list may tell us how this is best achieved."

Consumer Products & Retail companies make up the largest share of the index with 40%, followed by Automotive & Transportation (10%) and Diversified Industrial Products (9%). Of the top 10 automakers, 4 are family-controlled companies. In contrast, only 3 family businesses on the list are predominantly active in banking.

(Source: EY)