Nearly half of firms in the West Midlands are aiming for 10 per cent growth in the next 12 months, according to the latest survey suggesting business is on the up.
A total of 48 per cent of entrepreneurs in the region think their businesses will grow by at least 10 per cent over the next year, according to a new report from business advisers Deloitte. Meanwhile, 14 per cent expect to see growth of more than 50 per cent.
The Deloitte report says: “After years of saving cash and waiting for the recovery to fully take root, this year 39 per cent of entrepreneurs said they will use their cash reserves to finance growth. In fact, just eight per cent are actively stockpiling.
“Another encouraging sign from the report is that a fifth of Midlands’ entrepreneurs say they are taking the bold steps of investing in new products and exporting to new markets as their primary growth strategy. Over a third of companies will use organic growth as their main growth strategy.”
Mark Doleman, head of entrepreneurial business at Deloitte, and based in the Midlands office, said: “This reflects a strong previous 12 months for entrepreneurs, where 66 per cent in the region experienced a growth in turnover, and 10 per cent saw growth of more than 50 per cent.”
But most Midland entrepreneurs remain reliant on working capital, with just 14 per cent saying that banks are more willing to lend now than they were last year, while only eight per cent expect to take out a bank loan and just six per cent will use an overdraft facility.
Mr Doleman added: “The Government has shown signs of support – but more can be done.”