Business leaders in the South West are confident 2023 will be more successful than 2022 despite challenging economic forecasts, new research has revealed.
A survey by Lloyds Bank found a total of 91% of firms in the region are planning to make investments over the next 12 months, while 42% expect a higher turnover. One in seven businesses (15%) expect turnover to increase by between 5% and 19%, with a further 16% anticipating a rise of more than 20%.
Overall, more than two-thirds of firms questioned believe they will achieve greater success in 2023 than they did last year.
The poll of 1,200 UK companies – including 95 businesses in the South West – was carried out between December 1 and 14, and surveyed businesses from all sectors, regions and firm sizes with annual turnover above £250,000.
Amanda Dorel, regional director for the South West at Lloyds Bank said: “Despite the challenges so many South West businesses have faced throughout the last year, the majority are optimistic that 2023 will bring greater success. Firms are rightly focusing on areas of their business where investment can have a great impact on the bottom line, such as investing in their teams and improving efficiency.
The businesses looking fuel growth through investment reported that funding would be used to grow their companies (49%), invest in staff training (37%), and improve efficiency measures (35%).
Alongside investment, businesses said they planned on making several New Year’s resolutions, including winning new business in existing markets (36%) and improving productivity (30%). Half of firms said they were intending to target growth from their existing customer base, while more than a third (36%) plan to focus on retaining existing staff. Meanwhile, some 17% of businesses are set to invest in paying bonuses and short-term incentives.
Ms Dorel added: "Businesses will no doubt still have to combat economic headwinds that will persist into the new year and, as always, keeping a close eye on cashflow will be key here."
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