Despite a sluggish economy, young and ambitious small business owners in the UK are showing no hesitation in securing funding for growth. A recent survey by Purbeck Insurance Services reveals a significant surge in financing plans, with over 70% of small business managers either having secured or planning to secure funding in 2025. This is a dramatic rise from just 30% in 2024. Even more striking, 51% of these entrepreneurs are willing to put their personal assets at stake by signing personal guarantees.
Amongst the key drivers for this funding, investment in new technology and acquiring essential equipment top the list. Interestingly, while 28% of businesses seek capital for acquisitions, a growing number—41%—require finance to support cash flow, up from 32% last year. Additionally, 20% of respondents are using financing to manage existing debt obligations. The appetite for larger investments is also clear, with most businesses securing between £100k and £200k, while only 9% seek less than £50k.
The enthusiasm for securing funding is particularly strong in the North East, Scotland, and Wales, areas that are also benefiting from the Government’s Nations and Regions investment initiatives. Among younger entrepreneurs, aged 25-34, 76% plan to secure finance in 2025, demonstrating a higher risk appetite and confidence in future growth opportunities.
Another notable trend is the increasing number of small business owners becoming personal guarantors for loans. Half of those surveyed have already taken on this responsibility or plan to do so this year. For younger entrepreneurs, the figure rises to 76%, possibly due to increased awareness of personal guarantee insurance (PGI) as a risk mitigation tool. In fact, 75% of 25-34-year-olds are familiar with PGI, compared to just 47% of those aged 45-54.
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.
