The EY Fast Growth Tracker revealed the nationwide business ambition to raise investment in 2018. However, while the desire to raise investment is there, 50 per cent of entrepreneurs admitted securing funding is the main obstacle in their way.
The survey of 371 business owners also showed that 61 per cent managed to raise investment over the past year, but two-thirds said it was a major distraction when it came to running the business itself.
Findings showed that 72 per cent of entrepreneurs seeking to raise investment in 2018 want up to £5m, while 17 per cent want over £10m.
Richard Goold, EY Fast Growth Platform partner, said: “Funding has historically been, and continues to be, a hurdle to growth for the country’s entrepreneurial businesses. This research shows a disparity between matching ambitious enterprises with suitable investors, leading many to look overseas to find the growth capital they need.
“To make our startups a British business success, more routes to funding need to be created to ensure that these bright, entrepreneurial businesses are enabled to flourish.”
To raise investment, some 62 per cent of entrepreneurs will seek investors based overseas, rather than those in the UK. It comes as 39 per cent admitted their previous funding attempts were met with difficulties when seeking appropriate backers.
“Entrepreneurs, with their innovative and optimistic outlook, will help to lead the way for UK business. In a rapidly changing world, where others see barriers, entrepreneurs will often see opportunity,” said Joanna Santinon, EY Entrepreneur of the Year Lead Partner at EY.
“Other businesses can learn a great deal from their ‘can-do’ attitude, passion and sense of purpose, which contributes to their fast-growth and ambitious plans for the future.”
In addition to the goal to raise investment, 55 per cent of company owners expect to increase revenue by at least half in the next year. Elsewhere, 19 per cent plan at least a 20 per cent increase. Looking at this by sector, tech entrepreneurs are the hungriest for revenue growth – 65 per cent plan revenue growth of at least 50 per cent in the next year.