externally invested companies

Bootstrapped Small Businesses More Profitable Than Funded Counterparts

Bootstrapped Small Businesses More Profitable Than Funded Counterparts

Small and medium businesses who have not used or applied for external finance – ‘permanent non-borrowers’ (PNBs) – are performing at the same rate as their counterparts who have received investment, according to the latest BDRC SME Finance Monitor. The report found that bootstrapped small firms are more profitable than their funded counterparts (81% compared to 76%) and have achieved similar levels of growth in the last 12 months. However, the research did reveal that PNBs were much less ambitious. Only 37% of non-funded firms are planning to grow their company over the next year and only 29% were found to have introduced new innovations in their business compared to 49% and 41% of funded companies respectively. Overall, small businesses are performing very well. The majority (80%) of comp... »