Northern entrepreneurs believe access to finance is the biggest barrier to setting up a new company, according to the results of an EY survey.
Some 55 per cent of respondents said it was a key hurdle to launching a business, followed by fear of failure (53 per cent) and uncertainty of income (37 per cent).
In contrast, only six per cent thought bad market conditions could hold back entrepreneurs, while just 10 per cent cited the possibility of going bankrupt as a barrier to starting a business.
EY surveyed more than 50 northern entrepreneurs to gather their views on the factors they feel can help or hinder growth.
Stuart Watson, of EY, said: “Matching funding to business growth plans remains a key area of concern for ambitious entrepreneurs, not least as rapid growth tends to absorb cash.
“Business leaders that have cash controls are more likely to attract investors.”
Some 37 per cent of northern entrepreneurs – the highest of all UK regions – said using profits to grow their businesses would be the most attractive route if they were considering secondary funding sources.