A surge in SME funding is reshaping the business landscape, with over 70% of small business owners securing or planning to secure finance in 2025. Younger entrepreneurs, particularly those aged 25-34, are at the forefront, demonstrating a strong appetite for investment and calculated risk-taking.
New research by Purbeck Insurance Services reveals a dramatic rise in SME financing plans. Compared to just 30% in 2024, more than 70% of small business owners surveyed have already secured or intend to secure funding this year. This shift is particularly evident among younger entrepreneurs, with 76% of 25-34-year-olds planning to obtain finance to fuel their growth ambitions.
Investment in new technology and equipment remains a top priority, but cash flow support is also a significant driver, with 41% of respondents citing it as a reason for securing funding—up from 32% in 2024. Other key motivations include business acquisitions (28%) and debt repayment (20%). The typical funding amount sought ranges from £100,000 to £200,000, with only 9% of businesses looking for less than £50,000.
Crucially, half of those seeking finance are willing to provide a personal guarantee, demonstrating a strong commitment to their businesses. This trend is even more pronounced among younger business owners, with 76% of 25-34-year-olds prepared to put their personal assets on the line. Awareness of personal guarantee insurance (PGI) is also highest within this demographic, with 75% familiar with PGI compared to just 47% of 45-54-year-olds.
Despite broader concerns about declining business confidence among UK SMEs, these findings suggest an enduring optimism and a proactive approach to growth. SMEs continue to embrace managed risk to drive expansion. While challenges such as rising taxes and increased labour costs persist, the strong demand for finance signals resilience and a belief in future opportunities.
Duke Capital Limited (LON:DUKE), formerly Duke Royalty Limited, is a Guernsey-based provider of hybrid capital solutions for small and medium-sized enterprises (SME) business owners in the United Kingdom, Europe and North America, combining the features of both equity and debt.
