“In the current fragile economic climate, it’s especially important that entrepreneurs know their balance sheet inside out. Borrowing can bring considerable business benefits but debts must be kept under control and within the financial limits of the company," stated Carl Jackson, head of Tenon Recovery.

Just under 50% of small businesses owners involved in the survey owed money, with 12% stating that business debt was their biggest concern and one fifth worried that the level of their business debt was having a negative impact on the business.

Entrepreneurs were more relaxed about their finances, although 28% of those involved in the research had moderate or high levels of personal debt.