Save content
Have you found this content useful? Use the button above to save it to your profile.
man trying to expand out of box | accountingweb | businesses struggling to expand
iStock_sergeynivens_expand

Mid-sized businesses are struggling to expand

by

Operating costs are one of the top challenges facing mid-sized businesses, while delivering on plans to expand is proving challenging for half of them.

28th Feb 2024
Save content
Have you found this content useful? Use the button above to save it to your profile.

It’s not surprising to see cost pressures or access to capital remain significant challenges for mid-sized businesses, a partner at BDO has told AccountingWEB on the back of new data from the firm that shows companies of that size are struggling to expand.

The bi-monthly research, which surveys 500 leaders of mid-sized businesses (those with a turnover of between £10m and £300m), reveals that 55% say operating costs and the cost of borrowing is one of their top challenges over the next six months.

Delivering on plans to expand is also considered to be a “significant issue” for 50% in the first half of this year, while 41% list sourcing new financing from private or public sources – such as bank loans and grants – as one of their immediate challenges.

Not surprising

Richard Austin, partner at BDO, spoke to AccountingWEB about the data, noting that it’s not surprising to see cost pressures or access to capital remain significant challenges for mid-sized businesses.

“Our bi-monthly research has continued to indicate that this is one of the major challenges businesses continue to face,” he said. “Without the right support to weather tough macroeconomic challenges, we could see the mid-market struggle to deliver on plans for expansion.

“This is a big issue, as their performance will be critical to the overall economic growth of the UK.”

Consider opportunities

Austin believes that to help businesses be able to prioritise investment, the government should “consider opportunities specifically aimed at mid-market businesses, which would enable them to deliver on plans for growth”.

“This could include better support and guidance regarding exporting overseas, and unlocking new routes to help companies raise the funding they need – whether making listing more accessible or fine-tuning existing government grants for small businesses to cover the mid-market.”

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.