- 65% of Northwest-based small businesses will be forced to ditch growth plans if they are unable to secure funding
- Biggest impact will be on forging new trade deals abroad and investing in new machinery
- 32% say job creation in the region is dependent on securing business funding
The percentage of Northwest based small businesses that are relying on finance or funding to power growth has reached an eight-year high – and those most in need of it are the enterprises predicting significant expansion for the months ahead, according to new research by Novuna Business Finance.
The nationwide poll of 1,242 small business owners revealed that 65% of the region’s small business owners said they would have to put one or more growth projects on hold in the coming months if they were unable to secure funding or finance to power their growth plans – considerably above the national average (42%).
The growth projects Northwest enterprises say they would have to cancel or pause if they failed to secure funding included Investment in new machinery or production lines (34%) and launch into new markets outside the UK – where the region was significantly above the national average (33% Vs a UK national average of 20%).
The growth initiatives NW small businesses are most likely to put on hold if they were unable to secure funding
| Invest in new production lines/ machinery | 34% |
| Launch into new markets outside the UK | 33% |
| Run a marketing/advertising campaign | 33% |
| Increase headcount/ hire new people | 32% |
| Launch new products/ services | 31% |
| Invest in new vehicles | 27% |
| Modernise IT capability/purchase new IT equipment | 26% |
This reliance on finance comes at a time when the ripple effect of geo-political disruption is making it harder for small business owners to forecast organic growth. Nationally, the percentage of UK small business owners predicting growth for the three months to the end of June has fallen to a four-year low (29%) – with significant falls in the manufacturing, construction and retail sectors.
Percentage of small businesses that say they would put growth projects on hold – if they were unable to secure funding
| Q4
2017 |
Q2
2018 |
Q2
2020 |
Q2
2021 |
Q2
2022 |
Q2
2023 |
Q2
2024 |
Q2
2025 |
| 52% | 49% | 56% | 53% | 55% | 53% | 53% | 58% |
Joanna Morris, Head of Insight at Novuna Business Finance commented: “As we all reflect on the economic growth agenda that the Government has committed itself to, our Northwest research makes clear the immediate and tangible impact of businesses not securing funding: job creation put on hold, overseas trade deals and expansion cancelled – plus plans to modernise machinery and vehicles paused. All this directly contributes to the economic growth the country at large needs to see – and this is why supporting small businesses at this critical time is so important.
“At Novuna Business Finance, we specialise in supporting established small businesses as an alternative to the high street banks. We offer small businesses in need of capital the ability to finance assets, an alternative that could potentially benefit their overall cash flow and ease pressure on other areas of their budget. With an expert team and award-winning services, we provide access to the financial solutions our customers need and are committed to helping them develop and grow.”
