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

The survey found that 91% of the companies questioned said difficulty getting capital means growth plans are being rethought.

Medium-sized businesses employ millions of people across the UK (John Walton/PA) (PA Wire)

Nine in 10 mid-sized businesses 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%) are scaling back their business or making staff redundant.

The survey, from accountancy firm BDO, found that 91% 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% of companies are unable to finance their expansion plans and 20% 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 policymakers to address high costs from inflation was the most common call among business leaders,” it said.

“Almost 30% 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%) 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.