Andrew Playle, partner in the Leeds office of Mills & Reeve
Over 80% of mid-market businesses remain confident in their growth prospects despite an unstable economic landscape, according to new research from law firm Mills & Reeve.
The study is based on the opinions of 500 leaders of mid-market businesses in the UK and shows that 86% of Yorkshire’s mid-market businesses plan to increase turnover in this financial year by an average of 18% with almost two-thirds (64%) of those willing to bet their house on meeting this target.
This is not unrealistic, with the new research also revealing that three-quarters (74%) of mid-market businesses in Yorkshire grew turnover last year at an impressive average of 19%.
There are a number of concerns, however. More than half (52%) of mid-market business leaders across the region do not believe that the economy is strong and stable, with just under half (48%) worried that economic uncertainty will disproportionately affect the mid-market.
External funding is also found to be lacking: almost three in five mid-market leaders (58%) believe that their company can’t achieve its potential without better long-term finance options being available.
More than half (54%) of Yorkshire’s business leaders stated that they don’t believe mid-market finance is fit for purpose, and almost three-quarters (70%) believe that the UK funding environment is great for start-ups, but not for mid-market firms.
“But these businesses are being hindered in their efforts to realise their ambitions. Accessing growth finance suited to mid-market needs is a significant challenge, and the unstable economic and political landscape is causing some businesses to refrain from making the investment necessary to grow.”
The research goes on to reveal a perceived lack of support from the Government, with more than two-thirds (70%) of mid-market businesses sharing
Furthermore, Brexit threatens to be a significant drain on resource: 68% of Yorkshire’s mid-market businesses expect the break with the EU to cost their business significant time and money in terms of the administrative burden of regulatory or legislative change.
There is concern over recruiting and retaining specialist talent: three in five (60%) believe that Brexit is a threat to this, while more than half (56%) are worried about its impact on recruiting and retaining
“The events of the recent past may have rocked the nation’s confidence, but the resilience, strength and ambition of mid-market business leaders
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