Business

Nine in 10 mid-size firms rolling back expansion plans amid squeeze - survey

Nine in 10 mid-sized businesses say they are curbing their growth plans because they are struggling to get hold of enough money, according to a survey by BDO
Nine in 10 mid-sized businesses say they are curbing their growth plans because they are struggling to get hold of enough money, according to a survey by BDO Nine in 10 mid-sized businesses say they are curbing their growth plans because they are struggling to get hold of enough money, according to a survey by BDO

NINE in 10 mid-sized businesses in Britain and Northern Ireland say they are curbing their growth plans because they are struggling to get hold of enough money, a survey suggests.

A questionnaire sent to 500 business leaders every other month also found that around one in four (24 per cent) are scaling back their business or making staff redundant.

The survey, from accountancy firm BDO, found that 91 per cent of the companies questioned said difficulty getting capital means growth plans are being rethought.

"Despite staying resilient through an incredibly difficult time, tough challenges remain for mid-sized businesses, with access to capital becoming a critical issue," said BDO partner Richard Austin.

"As the engine of the UK economy, these companies are responsible for a large, vital proportion of its income and employment and their success will play a key role in the economic performance of the UK overall.

"Businesses believe more can be done to address their concerns, drive their growth and ensure the UK remains an attractive place to do business both today and in the future."

The survey found that 22 per cent of companies are unable to finance their expansion plans and 20 per cent struggled to invest in new technology or software.

BDO said the businesses need Government support with rising costs, by improving access to capital.

"More support from policy-makers to address high costs from inflation was the most common call among business leaders," it said.

"Almost 30 per cent want the Government to do more to improve access to private sources of funding, including bank loans, regional banking and private equity investment."

It said that others (32 per cent) had called for better Government grants and that a third thought more should be done to support businesses with their energy bills, such as improving their insulation.