Despite the stagnation of the UK economy, young and ambitious small business managers remain eager to invest and grow, according to a survey by Purbeck Insurance Services, a provider of personal guarantee insurance. The study reveals that over 70% of small business owners have either secured or plan to secure funding in 2025—more than doubling from 30% in 2024. Notably, 51% are willing to sign personal guarantees, putting their own assets at risk to support their businesses.
Younger entrepreneurs aged 25-34 show the highest demand, with 76% seeking finance this year. While the Federation of Small Businesses (FSB) has reported declining confidence among small firms, Purbeck’s data presents a more optimistic perspective. The top reason for seeking funding is investment in new technology, followed by acquiring new equipment. Additionally, 28% need funding for business acquisitions, while 41% require finance to support cash flow—an increase from 32% in 2024. Another 20% seek funding to clear outstanding debt.
41% need finance to support cashflow
Demonstrating the sureness of UK small businesses still further, the amount of finance typically being secured is £100-£200k, only around 9% of businesses surveyed were seeking less than £50k.
As the Government continues to push Nations and Regions investment fundsiv), Purbeck’s survey also highlights that the hunger to secure finance is most evident in the North East, Scotland and Wales.
More younger owner/managers become personal guarantors
Meanwhile, 50% of those surveyed are already personal guarantors for a business loan or have plans to become one in 2025. This rises to 76% amongst 25-24 year old small business owner/managers. This figure could reflect the fact that younger business owners are more likely to know about the benefits of personal guarantee insurance (PGI) to mitigate the risk to their personal assets. The survey found that 75% of 25-34 year olds have heard of PGI, compared to 47% of 45-54 year-olds.
Comments Todd Davison, MD of Purbeck Personal Guarantee Insurance: “Despite reports of a slide in business confidence among UK SMEs many remain sanguine about the need to invest for growth. Add to this the fact that more than half of those seeking funding are willing to put their personal assets on the line, and we begin to see a picture where UK SMEs still have a positive appetite for managed risk to better their businesses.
“Challenges lie ahead, particularly with rising tax costs and increased labour burdens following last November’s budget, which will impact many SMEs. However, the encouraging sign is that many businesses are exploring new financing opportunities this year, signalling optimism and potential growth for the UK economy.”