Bank barriers stopping mumpreneurs from realising their business dreams
Aspiring mumpreneurs claim risk, a lack of information and intimidating admin and finances are the biggest barriers to starting a business
UK banks are creating barriers that are hampering the success of mum entrepreneurs (mumpreneurs), according to a survey from APS financial.
Of those that had not started a business – 52% of the 1,500 mums surveyed – 47% said they had been prevented from doing so because it seemed like too big of a risk, 43% did not know how to get started and 35% were intimidated by the admin and financial aspects.
Those who currently own a business (23%) or have owned a business (25%) said the biggest challenges they faced were having enough time to do everything (40%), managing the business while raising children (29%), the hassles of red tape (29%) and finding a bank who’d offer financial support. (22%).
Respondents also highlighted banks’ lack of flexibility, with 41% saying setting up a business account had taken longer than expected, 38% that it was a “long and slow” process and another 38% that rates and fees were not transparent enough.
12% of UK mumpreneurs said they had actually shut down their businesses because of lengthy admin tasks such as tax returns, talking to their banks and keeping track of business costs and expenses.
The imagined costs of starting a business were generally far higher than the reality, with 23% of those who had not followed their ambition thinking an investment of between £10,000 and £50,000 was necessary. However, 36% of those who had started a business had only invested up to £1,000.
Rich Wagner, CEO of APS financial, said: “We should be empowering all small businesses, but especially mothers working to set up a business to thrive in our economy by offering fast, easy ways to open up bank accounts and manage cashflow, not throwing up barriers.
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“It is worrying to think that it is fears about admin and financial hassle that stops entrepreneurial mothers going it alone and our experience shows that grassroots entrepreneurs don’t need traditional banks to ‘bank’.”