[ad_1]
BDO’s Economic Engine survey of 500 mid-market businesses, more than a third (40 per cent) of regional companies are struggling to pay for materials or replenish inventory, with more than a quarter finding it difficult to invest in staff retention, such as training and wellbeing support.
More than a quarter admit that a shortage of funding means they’re facing the prospect of having to make redundancies or scale back the business.
The survey by the accountancy and business advisory firm also highlighted the ongoing challenges facing North East businesses.
Over the next six months, record levels of inflation will continue to blight regional companies, with more than a third saying higher overheads and increased operating costs are their number one concern.
As businesses in the region contend with a growing list of problems, the task of raising new finance from existing sources of funding, such as increasing loans and remortgaging property, is one of the top business priorities for a third of regional companies, with a further 33 per cent also looking to improve the environmental impact of their business.
In addition, more than a quarter intend to invest in research and development and new technologies, as North East companies look to take action over the next six months.
Michael Stallard, partner at BDO in the North East, said: “As a result of the tough economic conditions that continue to hamper regional businesses, companies are facing a real need to raise funds within the next 18 months, in order to kick-start their growth plans.
“Against a challenging backdrop, North East businesses are having to explore every option when it comes to raising additional finance, with many struggling to access the capital they need.
“For more than a third, Government support schemes are the most appealing source of funding, with revenue-based finance and private equity also high up on the list.”
Mid-sized companies, which employ eight million people and provide around a quarter of UK jobs are now calling on the Government to support them with rising costs and improve access to capital to make the UK a more appealing place to do business.
Stallard added: “So far, mid-market businesses in the North East have shown real grit and determination to fend off the challenges that continue to rain down on them.
Read more:
Newcastle-based Fat Hippo opens second London restaurant
Amazing North East pioneers who are blazing a trail for women in engineering
The nine North East projects backed with MILLIONS from new fund
“However, many are reaching tipping point. The need for greater capital is critical for a significant proportion of businesses, not just to finance growth plans, but also to address key issues such as investing in staff retention, repaying debts, improving salaries and, importantly, recruiting new employees with the right skills and experience.
“North East businesses cannot tackle these challenges in isolation.
“Business leaders in the region believe more can be done to address their concerns, to help to drive growth, and to ensure the UK remains an attractive place to do business.”
[ad_2]
Source link