High growth SMEs | Access to Finance | Research and insights | ACCA | ACCA Global

High growth SMEs | Access to Finance | Research and insights | ACCA | ACCA Global: "Growth finance is always a tricky subject. It is far from unheard of that companies are financially most vulnerable during a high growth period, when their working capital needs are so acute, coupled with other large investments that are often associated with high growth.

Our new report on High Growth SMEs: understanding the leaders of the recovery sheds some light on the financing needs of these high performing entrepreneurs. The report discusses the challenges, difficulties and the successes that growth-oriented entrepreneurs have in the US, European and BRICSA (Brazil, Russia, India, China and South Africa) economies and when it comes to finance, it shows that these businesses obtain very little from external sources – between 60% and 80% of their initial finance came from self-investment, most of which from savings (75% on average) or from personal borrowings. Even of the external finance that entrepreneurs use to start their businesses, a significant amount came from family and friends (10–25%) and from ‘other’ investors. Official financial institutions are notable only by their absence."

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