The number of TMT (Technology, Media & Telecoms) businesses who feel they have access to funding for their business to operate effectively has more than halved year-on-year, according to new research from accountants and business advisers BDO Stoy Hayward.
In 2009, only 38 per cent of TMT businesses said it was easy to get access to new funding in comparison to 73 per cent in 2008. In addition, the number who found it difficult to get access to funding more than doubled to 30 per cent (up from 14 per cent last year).
Julian Frost, Head of TMT, at BDO Stoy Hayward said: “We are really concerned about TMT businesses ability to access the funding they need to grow their businesses effectively. We're hearing increasing levels of frustration being expressed by TMT businesses as financiers say to them 'meet your growth forecasts and we'll support you with additional finance'. These dynamic innovative businesses need the additional capital to meet their growth forecasts. All this is just creating a chicken and egg situation.”
“As the economic environment remains tough over the coming months, the situation is likely to become increasingly difficult and many businesses may feel that funding has dried up completely,” he added