25 Feb 2025Better access to financial products for entrepreneurs will encourage more people to launch small businesses, according to research by the Federation of Small Businesses (FSB). The FSB says a quarter of entrepreneurs believe that being self-employed has made it more difficult for them to get a mortgage, while those who do succeed in securing one are often faced with higher rates and less favourable terms. The FSB's report also highlights that the excessive use of personal guarantees, which make borrowers personally liable for business loans, are stifling growth. In addition, over a third said they do not contribute to a pension, mainly due to cashflow constraints. Tina McKenzie, the FSB's Policy Chair, said: 'People who decide to take a leap into the unknown by embracing entrepreneurship are taking on many risks – not least that of no longer being able to rely on a secure income. 'Income volatility adds additional barriers to accessing finance products, such as mortgages and external finance for their business, and makes saving for a pension harder. 'The impact of this should be minimised to encourage more people to take the leap without worrying that they will be locked out of common financial milestones as a result. 'The dream of owning your own home is firmly entrenched in our national culture, while we all aspire to a comfortable retirement – but these things should not be a privilege reserved for those in conventional employment.'