Around 35 per cent of entrepreneurs and the self-employed would turn to personal savings to fund their business, according to research by crowdfunding network Crowdfinders.
According to a survey of 2,000 adults, more entrepreneurs would turn to personal savings than banks or friends and family, which were used by 28 per cent and 15 per cent of respondents, respectively.
However, the study also revealed that only eight per cent of entrepreneurs and self-employed workers would turn to crowdfunding, while just five per cent would opt for peer to peer lending.
Additionally, the research revealed a lack of awareness of funding options among young entrepreneurs and small business owners, with 52 per cent of 18-34 year olds claiming they do not know where to turn for financial support.
According to Luke Davis, Co-Founder of Crowdfinders, there is much more to be done to help sole traders and entrepreneurs realise their ideas through alternative finance platforms such as crowdfunding.
Mr Davis added: "The alternative finance revolution was meant to democratise access to funding; however, more needs to be done to connect entrepreneurs with potential investors so they no longer have to rely on personal savings or the bank of mum and dad."