Nearly half of mid-sized businesses in Yorkshire will seek funding for growth in the next 12 to 17 months, despite the current economic climate.

According to BDO’s Rethinking the Economy survey, 48% of companies in the region intend to look for investment by the end of 2023, with 42% accelerating fund raising plans in the next six to 11 months.

The research of 500 mid-sized businesses showed that the top two sources of funding for Yorkshire businesses are revenue-based finance (35%) and private equity (29%), with Government-backed schemes, such as Future Fund and Innovate UK, as well as crowdfunding also on the financial radar.

Jason Whitworth, M&A partner at BDO in Yorkshire, said: “Regional businesses are facing a plethora of challenges that keep on mounting in the face of an anticipated recession. Despite this, there is still a clear appetite to seek and secure investment, as businesses look towards multiple sources of funding to meet strategic aims.

“With the investor market equally as ambitious in the region, eager to support entrepreneurial companies that wish to scale up at pace, we expect this level of interest by companies to have a positive effect on investment activity in Yorkshire over the coming 12 to 18 months.”

The survey also highlighted the growth intentions of regional businesses, with one in five companies stating that they intend to expand internationally in the next 12 months. Of those businesses that currently operate overseas, 29% plan to expand their presence.

Whitworth added: “Operating internationally brings with it a multitude of tax and regulatory considerations that can differ from one territory to the next. However, the financial rewards for establishing a strong footprint in complementary markets can be significant if planned and funded in the most appropriate way and Yorkshire businesses are clearly keen to capitalise on the opportunities this brings.”