The majority of East Midlands businesses expect 2023 to be more successful than 2022, despite challenging economic forecasts, according to the latest data from Lloyds Bank.
Almost two-thirds (65%) of the region’s businesses said they are confident they would have greater success in the coming 12 months, compared to the past year. A fifth (21%) were not confident about being more successful in 2023, and nearly one in 10 (8%) expected their business to perform at the same level in the next year. The research was carried out between December 1 and December 14 as part of additional polling for the monthly Lloyds Bank Business Barometer.
Firms in the East Midlands projected a more upbeat outlook for 2023, with over half (51%) expecting a higher turnover than in 2022. One in five businesses (19%) expect turnover to increase by between 5% and 19%, and a fifth (20%) anticipate turnover to increase by more than 20%.
When businesses were asked what they would do to fuel growth, 91% said they were planning an investment drive. Businesses reported that funding would be used for staff training (38%), new technology (34%) and developing their company (32%).
Alongside investment, East Midlands businesses plan on making several New Year’s resolutions. These include growing revenue from their existing customer base (33%), followed by improving productivity (31%). Almost half (45%) said they are planning to retain existing staff, with 19% set to invest in paying bonuses and short-term incentives. A third (33%) are intending to target growth from their existing customer base.
Dave Atkinson, regional director for the East Midlands at Lloyds Bank, said: “The East Midlands has always been a region that refuses to stand still, and it’s down to the resilience of its businesses that firms are focused on opportunities for growth despite the challenging landscape.
“Firms are approaching 2023 with a clear plan for developing their business and are laser focused on the areas they believe will help them best achieve their goals – retaining and upskilling their staff and investing in new technology. To ensure they have the working capital to fund their ambitions, businesses should carefully consider all avenues available to them and we will be by their side to offer the advice and support they need.”
