Entrepeneurs prefer to go it alone, says E&Y
UK entrepreneurs prefer to be left to their own devices when borrowing and are not put off by failure, claims a joint report from Ernst & Young and the London School of Economics.
Over a third raised seed capital from their own resources, with 16% of these re-mortgaging their own property. Venture capital firms funded 28% while bank loans or personal contacts financing around 20% each.
A distinct regional pattern emerged, with those in London and the south preferring the stock market route, Midlands entrepreneurs relying on bank loans and venture capital, and Scottish entrepreneurs most likely to be lent money by friends or collaborators.
About one-third of the 500 surveyed were on their second or later venture. The vast majority – 80% – had started their own firm from scratch while only one in 20 had inherited or married into their company.