Greater Manchester businesses ‘cautiously optimistic’ in run-up to Brexit

Businesses in Greater Manchester are “cautiously optimistic” in the run-up to Brexit, according to a new report which also highlights challenges around skills and access to finance.

The fifth Greater Manchester Business Survey, conducted on behalf of the Business Growth Hub, part of the Growth Company, reveals that almost half of businesses (45%) expect turnover to increase in the next 12 months, while 40% expect no change.

Fewer businesses reported they had increased employment in the last 12 months – but more than nine in 10 (93%) anticipate employee numbers will remain the same or increase in 2018, the report said.

Meanwhile, nearly a third (30%) see business finance as the top barrier to growth, up from 22% in 2016 – yet just 15% sought investment and funding in 2017.

Other findings include:
A fifth of GM businesses (20%) reported that they exported (up from 12% in 2014) – however only 5% of GM businesses reported planning to export in the future
Fewer businesses believe a lack of staff or skills was a barrier to growth in 2017 (down to 19% from 30% in 2016) and more respondents said workforce and skills were the main driver of growth (32%)
Four out of five businesses (81%) report no barriers to innovation (up from 71% in 2016), reflecting the entrepreneurial spirit of the city region

Richard Jeffery, director of business growth, Business Growth Hub, said: “It’s very encouraging that Greater Manchester firms are, on the whole, cautiously optimistic about the future, but it’s also important to address the things that are stopping businesses achieving their full potential. I was interested to see that there’s often a disconnect between the perceived barriers to growth and what companies are doing to overcome them.

“For example, around a third said business finance is the top barrier to growth, yet just 15% sought investment and funding in 2017. And while it is encouraging that 22% of companies would consider seeking finance through a government-backed loan or investment scheme, the type of which the Hub can signpost you to, turning to the bank still remains the first-place businesses think of going to for funding. In contrast very few businesses think that venture capital or angel investment could be an option.”

Donna Edwards, managing director of business support and business finance at The Growth Company, said: “This year’s survey is the first completed after the referendum result on Brexit. It is interesting to note the key findings broadly reflect insights and feedback we are getting from a lot of the businesses we work with relating to Brexit. Businesses are becoming more cautious.”