A third of small business owners say that crowdfunding will be their most likely funding option in the next year, according to a survey by law firm, Irwin Mitchell.

In comparison, only 17% said that they were likely to use peer-to-peer lending, and just 13% said they’d be looking for angel investment.

Traditional funding routes remain the most popular, however, with 38% of entrepreneurs preferring this funding option.

The survey showed that alternative business funding is growing in acceptance, with 77% saying that they would consider crowdfunding, with 73% for P2P lending and 69% for angel investment.

Having said this, 31% said that crowdfunding still seemed to have a ‘wild west’ reputation, and that this deterred them from trying it out, as they feel it offers little protection to investors.

On the other hand, the majority said that angel investors had the appropriate amount of control over the businesses they invest in.

Andrea Cropley, corporate partner at Irwin Mitchell, said:

“Although many entrepreneurs have not yet used alternative forms of funding, it is clear that many are happy to do so and will in the next year. As with all finance options, whether mainstream or less traditional, it is vital that businesses explore all options and take the appropriate advice from specialists.”

Image by Scott Cresswell