Nearly half of mid-sized businesses in the Midlands will seek funding for growth in the next year, despite the current economic climate.
According to BDO’s Rethinking the Economy survey, 48% of companies in the region intend to look for investment by the middle of 2023, with 40% putting fund raising plans in place in the next 12 to 18 months.
The research of 500 mid-sized businesses showed that the top two sources of funding for Midlands businesses are debt finance (34%) and bank loans (31%), with private equity as well as crowdfunding also on the financial radar.
Roger Buckley, M&A partner at BDO in the Midlands, said: “Regional businesses are facing a plethora of challenges that keep on mounting in the face of high inflation and an impending recession. Despite this, there is still a clear appetite to seek and secure investment, as businesses look towards multiple sources of funding to meet strategic aims.
“With the investor market equally as ambitious in the region, eager to support entrepreneurial companies that wish to scale up at pace, we expect this level of interest by companies to have a positive effect on investment activity in the Midlands over the coming 12 to 18 months.”
The survey also highlighted the growth intentions of regional businesses, with nearly a quarter of companies stating that they intend to expand internationally in the next 12 months. Of those businesses that currently operate overseas, 19% plan to expand their presence.
Buckley added: “Operating internationally brings with it a multitude of tax and regulatory considerations that can differ from one territory to the next. However, the financial rewards for establishing a strong footprint in complementary markets can be significant if planned and funded in the most appropriate way and Midlands businesses are clearly keen to capitalise on the opportunities this brings.”
