Business angels are in high demand
With bank finance still hard to come by, smaller businesses have been flocking to Dragons’ Den-style ‘business angels’
But the increased demand has led to a shortage of investors, say experts.
The British Business Angels Association has seen a 40% to 50% increase in demand for finance from small firms since the banking crisis reached its peak last autumn.
Pressure has not eased. Bank lending to businesses was £1.1bn lower in May than in April, latest figures show.
But with business angels – usually successful entrepreneurs – having to spend more time on their own businesses during the recession, angel networks are becoming increasingly stretched.
The BBAA has launched a Government-backed series of roadshows, workshops and awareness-raising campaigns to encourage more people to think about becoming a business angel.
‘We are trying to get more people who have been in business and have lots of experience to consider this as something useful to do and a good way of investing their money,’ says Jenny Tooth, BBAA business development director.
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