Businesses confident – in the long term

The study reveals that directors of businesses in the region with a turnover of up to £20m are expecting, on average, to double their annual sales in the next five years.

In the shorter-term, however, businesses in the region are focused on survival with the active pursuit of growth taking a back seat, according to the survey.

Nearly two-thirds (64 per cent) of company directors say that survival is their immediate key priority.

There is evidence that some companies are already looking to pursue growth, with 40 per cent of survey respondents in Yorkshire and North Lincolnshire investing in research and development, the highest rate in any region in the UK.

The tough trading environment is seen to represent the biggest challenge to companies’ growth prospects and is cited by half (52 per cent) of businesses as preventing them from growing.

Steve Pateman, head of Santander corporate and business banking, said: “Many businesses in Yorkshire remain cautious in the current trading environment but it is encouraging that they are confident in their growth prospects in the longer term.

“Indeed, this research shows that a great number of companies in the region are already investing to achieve this growth.”