UK growth companies expect it to be “easy” to obtain growth finance over the next 12 months, according to new research.
The 2013 Growth Survey by private equity investor ECI Partners found that 54% of 650 growth businesses polled said they believe it will be “easy” or “very easy” to get hold of finance for growth in the coming 12 months, up from 36% in 2012.
The firm found a “significant” increase in companies looking to alternative forms of funding, with 57% considering private equity, up from 40% in the previous year.
The research revealed that 41% are likely to look to public markets to finance growth, compared to 9% in 2012.
Appetite for bank debt remains consistent with last year, as 58% said they would use bank finance to fund their growth, marginally up from 57% in 2012.
David Ewing, managing partner at ECI Partners, said: “The importance of growth companies cannot be overstated, as they play an essential role in creating jobs and boosting UK prosperity.”
He claimed that many growth companies are “sceptical” about sources of finance but said investors should do more to explain the benefits and added value they can bring to businesses.
The survey’s findings also showed signs of improving confidence in the economy, as 73% of companies polled are considering funding growth initiatives in the next 12 months.
New product markets are expected to be the biggest driver of growth for 38% of respondents, while 36% view entry into new countries as a “key driver” of growth.