Demand for funding is set to rise in the next 12 months, as North West businesses set out their growth ambitions for 2025 – a new report has found.
An overwhelming 80% of regional businesses surveyed as part of Ambition 2025 are actively seeking funding to facilitate growth, with angel investment and growth capital the most favoured types of investment for North West decision-makers (21% each).
Unsurprisingly, attracting external investment is the number one priority for regional businesses aiming to achieve their ambitions. This focus is especially strong among younger decision-makers (16-34-year-olds), with 56% of respondents identifying external investment as key to executing their growth strategy.
The findings are part of a new report commissioned by Manchester law firm, Pannone Corporate. Through a combination of research and in-depth interviews, Ambition 2025 aims to understand the key drivers of growth, as well as the motivations, priorities and challenges for regional companies that make up the North West business community.
A survey of 200 regional businesses with a turnover of between £20 million and £300 million – carried out in conjunction with the report – also found that M&A activity is set to increase, with mergers and acquisitions high on the agenda. Over three-quarters of businesses in the North West plan to explore M&A opportunities within the next year. This trend is particularly prevalent in education (93%) and leisure (88%), with tech following closely behind (84%).
Paul Jonson, senior partner at Pannone Corporate, commented: “The North West has a strong heritage of ambitious, entrepreneurial companies that are intent on growth. Despite the economic, social and geo-political challenges that exist in the market, there is clearly an appetite to seize opportunities and navigate the obstacles and barriers that lie ahead.
“Our aim with Ambition 2025 is to tell those stories, listen to the voices of the people behind some of the region’s most successful companies, and understand what their growth ambitions are for the next 12 months. It’s given us an interesting insight into their growth journeys to date and what the entrepreneurial landscape will look like in 2025.”
As part of the report, Pannone interviewed 15 businesses based in the North West about what aspirations they have for the future. Participants included: The Lowry, Direct Access Group, Serotonin, Duo UK, LOFT UK and One + All. The research and interviews focused on five core areas: finance, impact, innovation, ambition and people.
According to the research, more than 90% of businesses surveyed are planning to invest or improve their people offering over the next 12 months. The top people priority for business decision-makers over the next 12 months, is offering more flexible work options for employees. The focus on flexibility tops other people-related factors such as improving pay and recruitment – arguably reflecting a broader trend toward workplace cultural transformation.
Chris Davis, CEO of Manchester-based Moneyplus Group, who was part of the report, commented: “A huge investment is in our people. We want to attract and retain the best talent. Therefore we have an obligation, not only to our customers and our shareholders, but to our colleagues, to look after them and to demonstrate to them that they’re not just a line on a spreadsheet.”
Steven Mifsud MBE, CEO of Direct Access Group, believes growth comes from having a strong and diverse team to deliver ambitious projects – staff who really understand what the business is trying to achieve.
He commented: “That is more important than any qualifications or work experience, because that is really hard to teach. We hire predominantly disabled people, or those who have first-hand experience of barriers. That way, we have the right people in our team, and we can then train them up and help to smooth those diamonds.”
