In a recent study published by GEM lack of funding was cited as the major stumbling block by 50.6% of people who were thinking about starting their own business. The unwillingness of banks to lend to new and small businesses has been well documented in the media. The government and a whole host of entrepreneurs are currently engaged in trying to solve this issue. Alternative funding sources such as invoice factoring and peer to peer lending are being backed by the government while crowd funding is one of the hot topics of the day.
However the GEM report also indicated that borrowing money from banks or crowd funding start-up capital are not the only options available. It also shows that the expectations about where people think they will get funding do not always match the reality.