Manufacturers in Lancashire are being asked to consider alternative methods of funding after new research suggests that more than three quarters of entrepreneurs plan to use retained earnings to finance growth within the next year.
Statistics collected for Investec’s Entrepreneur Confidence Index revealed that 79% of businesses plan to use saved funds while 57% will use bank loans or an overdraft. While some businesses will need to downscale and believe access to capital is difficult, 75% are looking to grow by launching new ventures.
Economic development company Regenerate Pennine Lancashire has pledged to help local enterprises access funding through its online support directory and a new service. Their Accelerating Business Growth in Lancashire (ABG) service is designed to meet the needs of local advanced manufacturing SMEs by offering them capital investment for expansion projects, including premises, plant and machinery.
Regenerate Pennine Lancashire were awarded £7.5 million from the Regional Growth Fund to deliver ABG in order to help manufacturing enterprises in Lancashire. The funding is expected to create 3000 jobs within the Lancashire supply chain and help firms to bring forward investment for expansion projects.
Steve Hoyle, Regenerate’s Managing Director, said: “It is still a hard time financially for many businesses, but it is very encouraging that many still have plans to grow in the next year. We have funding available through ABG, which can help high-growth businesses achieve what they need to increase their output and compete nationally.”
Business Minister Vince Cable visited Regenerate Pennine Lancashire at the beginning of August ahead of the ABG’s launch. He said:
“Regenerate Pennine Lancashire clearly have the right knowledge and expertise to pick those firms that, with a bit of help, can attract private investment and unlock growth for the future.”