The usual problem of trying to find funding and finance to set up a business is no longer the biggest barrier to enterprise. This was the finding of a poll of early stage start-ups that overwhelmingly rated credit management as the biggest obstacle.
The study was carried out by the Better Payment Practice Group (BPPG) as it polled over 200 small enterprises about the difficulties they have experienced in starting and operating a business into a thriving success.
A similar small business enquiry made by Enterprise Insight, the group behind the forthcoming Enterprise Week, also found out that half of young entrepreneurs with a good idea failed to bring it to reality because they had trouble in accessing funds.
But the BPPG respondents revealed that credit management problems hampered their start-up and expansion ventures more than any other factor. Over 35 per cent of respondents said they suffered because of poor credit management, while just 19 per cent said that accessing capital is the biggest obstacle in their business.
Meanwhile, a smaller number of entrepreneurs said that the biggest barrier that they faced was knowing how to get their idea off the ground. This is then followed by those who suffered from finding it difficult to find ongoing business support.
According to the BPPG â€œAlthough business owners know from experience the restrictions that cash flow problems can place on a new or growing business, the survey highlights that employees and budding entrepreneurs do not realise the importance of credit management.â€
The group is urging entrepreneurs to consider the long-term vision of their enterprise dream and this could be achieved by listening to established company owners and business managers.