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The credit squeeze brought on by the recent instability in the financial markets is likely to have an impact on every business, according to online small business magazine Startups.
Matt Thomas, editor of Startups said that "the unfavourable economic climate is likely to have an impact on every business," and that "well unfortunately lose some businesses as a result."
He added that businesses might have to look at restructuring or "giving away equity in exchange for finance as opposed to standard debt borrowing" to get through the current economic troubles.
In July, NatWest reported that according to their own research, nearly 17 million Britons harbour a business idea, of which 30 per cent plan to launch their ideas - 26 per cent within the next year.
The findings from Startups, which provides information on how to launch a new business, may have an even greater significance for a new business start-up.
NatWest also reported that 23 per cent of entrepreneurs who have started new businesses in the last five years were tempted to give up, mainly due to cash-flow problems, lack of finance and poor marketing knowledge.
Mr Thomas gave the following reassurance to company directors of SMEs: "Theres not a shortage of business funding out there for businesses. I think the answer is to invest a bit more and have government and support agencies communicating a bit more [to tell them] how to [improve] their finances."
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