Mid-sized businesses plan multi-million pound investments over the next five years

• Half of the UK’s mid-sized businesses plan to invest more than £3million in expansion over the next five years 
• To unlock this investment, businesses are calling on the new government to offer more support including better access to capital and policies to ease workforce challenges

The UK’s mid-sized businesses are gearing up for growth, with more than half (51%) planning to invest upwards of £3million in the next five years in order to scale-up their business. 

BDO’s bi-monthly survey of 500 mid-sized businesses, which generate a turnover of between £10m-£300m each and account for one in four UK jobs, reveals that almost two fifths plan to direct the majority of their investment within the UK. 

Almost a quarter of businesses (24%) said that sourcing new capital to invest was one of their top priorities between now and the end of the year. This includes private equity investment, venture capital or additional bank loans.  

With a new government now in post, mid-sized businesses are calling for policies that will help them deliver these plans to scale-up. More than two fifths (45%) want to see a new government prioritise smaller business banks entering the market or grants for their business. 

Meanwhile, a third (33%) are calling for simpler regulation around listing mid-sized businesses on the London Stock Exchange’s Main Market or Alternative Investment Market (AIM), as over a quarter (27%) are considering an IPO outside of the UK. 
 
Almost two fifths (39%) want to see more investment in the regions outside of London and the South East, something the Labour party committed to in its manifesto as part of its ‘Plan to Power Up Britain’.  

Other obstacles to growth include persistent recruitment challenges, with almost half (47%) wanting to see policies to ease workforce pressures, including reform of the apprenticeship levy or more support towards the cost of skilled worker visas.

Despite these ongoing challenging economic conditions, a quarter of businesses consider themselves to be optimistic for the future, seeing potential recovery on the horizon. This compares to less than a fifth (18%) who say they are pessimistic for the future. 

Richard Austin, Partner at BDO said:

“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.

“Mid-sized businesses are the engine of the UK’s economy and their desire to invest is good news for the new Government. Policymakers need to follow their lead and create an environment where they can flourish and achieve their ambitions for growth.”

BDO has published a ‘mid-market manifesto’ outlining key policy areas that it believes will best support the growth of the UK’s mid-sized businesses. This includes extending holistic grants programmes to the mid-market to increase access to finance, reforming the apprenticeship levy and targeted support for mid-market exporters.   

ENDS

Note to editors

Accountancy and business advisory firm BDO LLP provides integrated advice and solutions to help businesses navigate a changing world. 

The organisations we work with are Britain’s economic engine –entrepreneurially-spirited, high-growth businesses that fuel the economy.  

We understand the ambitions and entrepreneurial mindset of those we work with and have the global reach, integrity and expertise to help people and businesses succeed.  

BDO LLP
BDO LLP operates in 17 offices across the UK, employing 8000 people offering tax, audit and assurance, and a range of advisory services. BDO LLP is the UK member firm of the BDO international network.

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