Personal financial pain felt by small business owners

The research reveals that almost half of Leeds’ small businesses (49 per cent) have had no choice but to inject extra cash into their company from personal sources this year.

Jonathan Elliott, managing director of Make It Cheaper, said: “The effects of squeezed margins and cost increases are not only threatening businesses, but the financial security of their owners and fami-lies.”

The study is based on independent research among owners and managing directors of 750 UK small businesses with 20 employees or less, commissioned by business saving adviser Make It Cheaper and supported by Cebr.

The vast majority (89 per cent) of small businesses view the UK as an “unbearably expensive” place to do business and many are finding they can only survive by supplementing the company with personal finances, the survey concluded.

Some Leeds small business owners have been pushed into even more extreme measures, with 22 per cent going as far as re-mortgaging their homes.

Mr Elliott said yesterday: “It is extremely concerning that small business owners have been compelled to take the drastic step of placing their own financial stability in jeopardy to keep the company afloat.

“However, many small businesses feel they have no alternative, as costs rise and traditional lines of credit remain cut off.

“The situation is particularly pronounced in sectors such as hospitality, where businesses are red flagged as far as banks are concerned.”

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