Small businesses family funding

A third of small businesses get funding from family

Nearly 30% of small businesses receive financial backing from family members, with three quarters stating that the finance provided was essential. Specialist lender Iwoca's research shows that 56% of small business owners received £25,000 or less from family members, with 17% receiving £25,000 to £50,000 and 19% receiving more. The main reasons for turning to family for funding were the desire to create a family-owned firm and urgent funding needs. Parents were the most likely to provide funding, followed by partners. In 48% of cases, funding from family members helped improve relationships while for 9% it made it worse.