Mid-market companies in the South West are missing out on hundreds of millions of pounds worth of additional growth every year because of slow decision-making, according to new research.
Firms in the region could generate around £476m in extra annual economic output, the report from advisory firm FRP found.
The findings suggest there is significant further growth potential for the West, with faster decision-making able to support stronger revenue growth, improved efficiency and greater resilience in response to changing market conditions.
The research forms part of FRP’s new Decision Economy report, a major new study delivered in partnership with research firm Development Economics to assess the importance of mid-sized businesses – those with between 50 and 499 employees - to the UK economy.
The data indicates that slow decision making is costing up to £13.7bn in growth across the UK mid-market – equivalent to around 0.6 per cent of GDP.
The report shows South West mid-market firms in particular are a major force in the regional economy, generating almost £73bn in annual turnover and supporting around 417,000 jobs.
There is also potential for this market segment to grow further, with South West businesses estimating that faster decision-making could improve revenue outcomes by around nine per cent.
However, the research suggests South West businesses are facing specific barriers to acting more quickly. More than a third (36 per cent) said risks or uncertainty around available options affect the speed and quality of decisions - above the UK average of 29 per cent. This was followed by competing business priorities (30 per cent) and the time required to gather information needed to assess options (28 per cent).
Clearer signals from government on future policy would do most to improve the speed and quality of decision-making, followed by faster decisions from finance providers and more accurate customer market forecasts, companies said.
Some 62 per cent also said they are likely to start or increase their use of AI or advanced analytics over the next 12 to 24 months.
Mark Naughton, partner at FRP Corporate Finance, said: “The South West has a strong and diverse mid-market, with businesses making a major contribution to jobs, investment and growth across the region.
“This research shows there is a clear opportunity to unlock more of that potential. Faster, more confident decision-making could help firms improve performance, respond more quickly to changing conditions and strengthen their resilience.
“But businesses need the right conditions to act. When leaders are dealing with uncertainty around options, competing priorities and time spent gathering information, clarity matters. Clearer policy signals, better insight and the right financial support would help South West firms make decisions with greater confidence and turn opportunity into growth.”
