A new report from EY shows 84% of entrepreneurs across the UK aim to fundraise up to £10m each over the next 12 months.
The EY Fast Growth Tracker interviewed 371 business owners about their fundraising and exit plans. It found that funding remains the biggest hurdle to British business success, with 50% of business owners agreeing it is the largest constraint on their growth.
Despite the majority of those surveyed completing a funding round in the past 12 months (61%), many found the process distracted them from running their business (40%).
However, this has not stopped UK entrepreneurs from being hungry for capital. 72% of those wanting to fundraise in the next year are looking for up to £5m in capital, with a further one in six (17%) wanting to raise over £10m.
Alumni from EY’s Entrepreneur Of The Year programme also took part in the survey. The programme, which brings together fast-growth business leaders from across the UK to network and share insights, celebrates the role entrepreneurs play in powering the UK economy. 2018 will mark the programme’s 20th Anniversary in the UK, and is now open for nominations.
David Rutherford, EY’s head of private mid-market and fast growth across the Thames Valley and South, said: “Entrepreneurs, with their innovative and transformative outlook, will help to lead the way for UK business.
"In a rapidly changing world, where many see barriers, entrepreneurs see opportunity. There is much to learn from their ‘can-do’ attitude, passion and clarity of purpose.”
Revenue growth ambitions
More than half of the businesses surveyed (55%) expect to grow their revenue by 50% or more in the coming year, with another one in five (19%) expecting a minimum increase of 20%.
From a sector perspective, tech entrepreneurs are the most ambitious when it comes to growth, with two thirds (65%) expecting to increase their revenues by over 50% or more in the next twelve months.
Targeting overseas investors
Business owners are often not looking to UK-based venture capital. A majority (62%) are targeting overseas investors, perhaps driven by the fact that over a third (39%) were unable to find suitable investors in their previous funding round.
Rutherford added: “Funding has historically been, and continues to be, a hurdle to growth for the country’s entrepreneurial businesses.
"This research shows a disparity between matching ambitious enterprises with suitable investors, leading many to look overseas for growth capital.”
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