Almost half of mid-sized firms in the North West set to defy tough economic conditions by raising cash to grow, new survey reveals

Almost half of mid-sized businesses in the North West will look to secure funding for growth over the next 12 to 17 months, despite the current economic climate.

According to accountancy firm BDO’s Rethinking the Economy survey, 47% of companies in the region intend to look for investment by the end of 2023. More than a quarter are accelerating fundraising plans in the next six to 11 months.

This is in contrast to the gloomier picture painted by another survey, from Grant Thornton, earlier this week. It revealed more than 10% of mid-sized businesses in Liverpool may not have enough working capital if inflation rose above 11%.

BDO surveyed 500 mid-sized businesses. Its results showed the top two sources of funding for North West businesses are debt finance (38%) and public markets (29%). Government-backed schemes, such as Future Fund and Innovate UK, as well as investment trusts/VCTs also on the financial radar.

James Fieldhouse, M&A managing director at BDO in the North West, said: “Regional businesses are facing a plethora of challenges that keep on mounting in the face of 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 North West.”

The survey also highlighted the growth intentions of regional businesses. It found almost a quarter of companies intended to expand internationally in the future. Of those businesses that currently operate overseas, 24% plan to expand their presence.