An Amble-based consultant has found that three quarters of entrepreneurs, freelancers and new small businesses receive no external funding.
Claire Shiels, alongside global freelance website PeopleperHour, found that only five per cent of 861 individuals acquired a start-up loan.
The results also found that only 15 per cent turned to family and friends as a means of raising capital, while two per cent relied on funds raised either from crowd-funding or peer-to-peer business loans.
Other responses, collated solely by Claire, indicate that almost half of business owners or freelancers were simultaneously working as an employee for another firm whilethey established their business, with 40 per cent using less than £500 start-up capital and three per cent getting funding from a bank.
Clare said: “Despite government initiatives and promises from banks, these figures show that small businesses and financial institutions remain at odds with each other.
“I would always recommend that in addition to the capital needed to start-up a business, individuals should put aside at least a year’s earnings if possible, to ensure that they can cope financially with the inevitable peaks and troughs of the first year’s trading”.