Many business owners "don't know their debt"

Over a sixth of small businesses owners have no idea what their firm owes, according to a new study.

Research by entrepreneur campaign group the Tenon Forum found that 47% of owners said their firm owed money, with 39% having recently taken out loans in order to grow their business.

The survey suggested that, on the whole, owners are "relatively comfortable" with their current level of business debt, with 15% willing to take on a high level of debt if it enabled long-term growth.

However, 12% named debt as their single worst business fear and 20% admitted that they felt worried about their business debt levels.

The Tenon Forum is maintained by UK accountancy and business advice firm Tenon.

"In the current fragile economic climate, it's especially important that entrepreneurs know their business balance inside out," said Carl Jackson, Tenon's head of recovery.

"Borrowing can bring considerable business benefits but debts must be kept… within the financial limits of the company."

The results of the study also showed that 28% of entrepreneurs have moderate or high levels of personal debt, while 25% believed their business debts had made them more cautious about borrowing money on a personal basis.