Cautious growth predictions from NW business
SMALL and medium-sized businesses in the North West are predicting just 14% growth over the next five years, according to the annual Business Growth survey by Santander Corporate & Commercial.
That’s the equivalent of £1.1m turnover growth over five years but is significantly behind national average figures, which show businesses across the country predicting a healthy 37% growth – the equivalent of £2.4m – over the next five years.
Indeed, the North West is seemingly the least confident region in the country when it comes to predicting future turnover growth – our Yorkshire neighbours rank third highest with predictions of a 60% turnover increase.
A tough trading environment was seen as a challenge to growth cited by 33% of respondents in this region. Lack of management know how (16%) and the ability to hire and retain the right staff (13%) also remain key challenges.
SMEs in the region (up to 249 employees) see ‘growing their business’ (43%) and introducing new products or research and development (24%) as key short-term priorities.
Regional growth is the most popular overall business aim, cited by 31% of respondents, while just 16% listed building their business internationally as their ultimate aim.
On a national level, small businesses in Great Britain are the most optimistic, forecasting an average increase in turnover of 69%. This compares to medium-sized businesses which are predicting an average increase in turnover of 25% over the next five years.
The survival of their business, which was the top short-term priority in 2014 (57%), is now a priority for 30% of SME senior decision makers, suggesting more companies are now focusing on growth.
Mike Rose, regional director for the North West at Santander Corporate & Commercial, said: “The number of businesses looking to grow organically, both regionally and nationally, is very positive news for our region.
“Santander is committed to helping businesses prosper and has been a consistent supporter of businesses in the UK, with lending over the last four years growing by an average of 9% per year. Our innovative Breakthrough product suite, which was upgraded earlier in 2015, is designed to support the UK’s most ambitious, fast-growing businesses while unique tools and services such as the Trade Portal and our Trade Missions have been designed to help more firms export and trade internationally.”
