More than half of the UK’s mid-sized companies are preparing for substantial investments aimed at growth over the next five years.
- A recent survey revealed that 51% of mid-sized firms plan to invest over £3 million each in growth initiatives.
- Nearly two-fifths of these companies intend to focus their investments domestically, underscoring strong UK growth ambitions.
- The survey also highlighted a need for new investment capital, with 24% of firms seeking funding from various sources this year.
- Optimism among these businesses serves as a positive indicator for the new Labour government, which prioritises economic growth.
A survey involving 500 companies with annual revenues between £10 million and £300 million has indicated that 51% of respondents plan to invest more than £3 million in growth initiatives. This significant investment underscores a growing optimism within this sector about future prospects.
Notably, nearly two-fifths of the surveyed companies intend to direct the bulk of their investments within the UK. This focus on domestic growth reflects strong national investment ambitions and confidence in the local economy.
Furthermore, 24% of the businesses surveyed are aiming to secure new investment capital this year. These firms are seeking funding through a variety of sources, including private equity firms, venture capital investors, and bank lending. This indicates a proactive approach to securing the necessary resources for growth.
Despite the economic challenges of recent years, including high inflation and rising interest rates, a quarter of the businesses surveyed remain positive about their future. In contrast, 18% hold a more pessimistic view. This balance of optimism and caution signals a tentative yet hopeful outlook among mid-sized firms.
This wave of optimism aligns well with the new Labour government’s economic growth agenda. Richard Austin, a partner at BDO, remarked, ‘With a new government in place and inflation hitting the Bank of England’s 2% target in May, it looks like businesses may have some reason to be optimistic after years of challenging economic conditions and uncertainty.’
The survey also highlighted a significant area of concern for medium-sized firms: recruitment. Nearly half (47%) of respondents urged the government to improve recruitment capabilities, particularly through reforms to the apprenticeship levy, to better support their hiring needs. This presents a clear call to action for policymakers to facilitate an environment conducive to business growth.
This trend of increased investment and optimism among mid-sized firms heralds a potential resurgence in the UK’s economic landscape.
