Short-term planning threatens business growth and innovation - report

The region 's businesses are only planning nine months ahead due to lack of confidence in their 'future proof ' strategy, according to a new report produced by BDO LLP.

BDO 's 'The Ambitious Entrepreneur: Tackling Your Barriers to Growth ' report looks at barriers to growth for entrepreneurial businesses and found that 70 per cent of companies are only planning nine months ahead, despite innovative ambitions to launch new products and services.

In addition, two fifths of the companies surveyed are only planning six months ahead, which means they only have visibility until March next year.

More than three quarters of companies shared that they 're likely - to some degree - to test out new business ideas or innovate this year and next, but 21 per cent recognise that a lack of planning will prohibit this innovation.

Suk Aulak (pictured), partner at BDO LLP in the Midlands said: “Ambitious, entrepreneurial businesses underpin our regional economy across all sectors and will be key to the UK 's future economic prosperity, as well as a driver of levelling up. It 's concerning but not surprising to see so many struggling to strategically plan more than six months in advance.

“The last 20 months have demonstrated that plans need to be flexible. For this type of business, it is often their agility which gives them a competitive advantage. However, creativity alone won 't sustain innovation and there needs to be a firm focus on planning and commercialising ideas if businesses are serious about growth and not losing ground to competitors. ”

BDO 's research found that a third of respondents try to handle operations, growth, funding, talent and compliance internally with their existing team.

Suk Aulak added: “When speaking to these businesses in the Midlands, the ambition and talent is clear. The region 's dynamic businesses already face disproportionate challenges when it comes to issues like funding, talent and navigating red tape, but are consistently creative in overcoming these barriers.

“I 'd urge the entrepreneurial businesses in the region not to get in the way of their own potential by taking a short-term or inward view and seek the support they need to build a longer-term strategy that will allow them innovate and to maintain a competitive advantage. ”