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Steps to Growth:

AMBITIONPart 1 of a comprehensive survey of owner-managed businesses in the UK

We spoke to 300 owner-managed businesses, from a range of sectors and geographical regions, about

their growth ambitions over the next 12 months

SIZE OF COMPANY IN NUMBER OF EMPLOYEES

Fewer than 10

10-50

51-250

250-500

More than 500

1%

14%

55%

22%

8%

PRIMARY SECTOR

Hotels/Leisure

Healthcare

Recruitment

Manufacturing

Construction

Waste Management

Professional services

14%

15%

14%

14%

16%

13%

14%

Confidence among owner-managed businesses in the UK is high

CONFIDENCE BAROMETER

CONFIDENCE BAROMETER

Will be in a stronger financial position in a year’s time

Will be the same Worse off

73%

24%3%

Owner-managed businesses in recruitment and constructionare especially positive about the future

Recruitment Construction

74% 61%

74% and 61% respectively said their best years are still ahead

Have a strong appetite for growth and a plan in place to make it happen

Open to growing but don’t have a

plan in place

Reluctant to grow because we are functioning well

as we are

32% 34% 27%

THE AMBITION INDEXMeasuring Attitudes to Growth

7%

Only 7% of companies are activelytrying not to grow

THE AMBITION INDEXMeasuring Attitudes to Growth

of London businesses said they have a strong growth plan

of Midlands companies said they were functioning well as they are

of Scottish businesses described themselves as open to growth

30%

51%

53%

PREFERRED CHOICE OF FUNDINGFOR FUTURE GROWTH

45% 30% 20%

Bank Funding

Private Equity Funds

AlternativeSources

Faith in the Big Banks has beenundermined because the service they

offer has become so impersonal

“

”- Mark Medd, Regional Director for London North

and West, Allied Irish Bank (GB)

Not Confident Very Confident54321

45%

17%were not at all confident that big banks would understand

their financing needs

said they were confident or very confident that big banks would understand their business financing needs

NEWER BUSINESSES ARE MORE OPEN TO ALTERNATIVE FINANCE

of businesses launched in the past five years are planning to approach either crowd-funding websites or angel investors to fund their growth

55%

MANUFACTURING IS MORE TRADITIONAL

intend to rely on bank funding

73%

HOTELS/LEISURE BUSINESSES ARE MOST LIKELY TO FINANCE GROWTH FROM RETAINED PROFITS

said they would self-fund their expansion

10%

82% of companies anticipate making new hires within the next year

GROWTH AGENTS

53% 20% 17%

Anticipate their workforcewill grow by 0-24%

Anticipate growingby 25-51%

Anticipate downsizing

GROWTH AGENTS

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are likely or very likely to open new locations or offices16%

65%

49%

COMPANIES EXPECT TO GROW BY:

Expanding the customer base

Cost reduction via better operating efficiency

INNOVATION IS KEY

76% 0%said it was either at the heart

of their growth strategy or crucial enough to receive

investment

said it wasnot at allimportant

INNOVATION PARTICULARLY IMPORTANT IN MANUFACTURING AND RECRUITMENT

RecruitingManufacturing

90% 81%

PRIMARY GROWTH PLAN

Sell more to existing customers

Offer more premium products/

services

Recruit new customers

35%35%

30%

HOW OWNER-MANAGED BUSINESSES WILLINVEST IN THE NEXT 12 MONTHS

Hiring New Staff

Capital Improvements

Marketing

43%

27%

82%

72% of respondents said they are unlikely to change their business strategy

MOST IMPORTANT MEASURE OF GROWTH

30%

25%

20%

15%

10%

5%

28%

24%

23%

Increase in market share

Number of customers

TotalRevenue

MOST IMPORTANT MEASURE OF GROWTH

30%

25%

20%

15%

10%

5%

28%

24%

23%

TotalRevenue

Increase in market share

Number of customers

Just 17% of owner-managed businesses rank profit as the key growth metric

17%

To read the Steps to Growth Report in full go to:

bit.ly/steps-to-growth

Features include:

Survey of 300 business leaders across Britain about trends, sentiments and opportunities around growing their business in 2016 and beyond

Editorial on topics including growth strategies, business innovation and growth metrics

Article from the Confederation of British Industry (CBI)

Interview with Lord Digby Jones