Growth Risk as Small Businesses Hoard Cash

Growth Risk as Small Businesses Hoard Cash

Almost two-thirds of small businesses are hoarding cash rather than investing in growth because of fears over future financial difficulties, new research from Venture Finance has suggested. In the poll of 500 business owners, 61 per cent admitted to holding on to cash, rather than ploughing funds back into the business. Nearly half (47 per cent) also revealed they were saving money not required for day-to-day operations, with those holding on to investable cash keeping an average of £190,000 in the bank. Managing director of Venture Finance Peter Ewen said business owners were “building up their war chests” while waiting for economic conditions to improve. But he warned that it could become a vicious circle, sending trading back into the doldrums. “Prudenc... »