New research from BDO highlights barriers facing regional businesses with ambitions to expand in 2026

Mid-sized businesses in the Midlands are targeting growth in 2026 but face significant challenges around access to finance and rising costs, according to new research.

Accountancy and business advisory firm BDO’s bi-monthly ‘Economic Engine’ survey of 500 mid-market businesses, those with revenues between £10m and £500m, found nearly two-thirds (62%) identified winning new UK customers and contracts as a top priority over the next 12 months.

A similar number said they were planning to launch new products or services in the coming year.

Finance barriers cloud growth outlook

Despite strong investment intentions, cost pressures are weighing heavily on regional firms, the study found. 

Half of Midlands mid-market businesses (51%) cited heightened costs, including energy, labour and raw materials, as a major barrier to growth, with ongoing Middle East tensions likely to intensify those pressures further.

Access to funding and the cost of borrowing were flagged as significant barriers by two in five businesses (40%), alongside cashflow concerns (46%). 

Midlands remains an economic powerhouse

For more than half (52%), investor risk aversion was a key challenge in securing additional finance.

Kyla Bellingall, regional managing partner at BDO in the Midlands, said: “The Midlands mid-market should not be underestimated. 

“These businesses are a powerhouse of our economy and clearly want to invest and grow.

“Stronger access to capital is crucial if that investment is to materialise.”