Growth experience: putting UK businesses under the microscope

HSBC UK has partnered with Raconteur to deliver advertorial content and an accompanying research program to look at what’s driving UK businesses with ambitions to grow. In this executive summary,  Raconteur digs into the key findings from new research conducted in partnership with HSBC UK. This is article one in a series of four exploring the findings of the Growth Experience research.

Times may be challenging for many businesses at present but despite this UK businesses are showing remarkable resilience and ambition, according to a new research survey commissioned by HSBC UK and Raconteur.

The Growth Experience research, which polled more than 500 decision makers at a wide range of UK-based companies, reveals a strong appetite for growth, particularly among those looking to expand internationally. However, it also highlights significant challenges in leadership and innovation that could potentially hamper these growth aspirations.

“What we’re seeing is a clear indication that UK businesses are not just surviving, but actively planning for growth,” says Stuart Tait, HSBC UK’s head of commercial banking. “This optimism is particularly encouraging given the economic headwinds we’ve faced in recent years.”

Gaining confidence to grow

The Growth Experience research paints a picture of a business landscape brimming with confidence as the economy starts to turn in businesses’ favour. A striking 85% of respondents who are already trading internationally and planning further expansion expect significant growth in the next 12-24 months, according to the research.

This optimism is even more pronounced among larger companies, with around 9-in-10 respondents from firms with an annual turnover in excess of £15m expecting steady or significant growth in the next two years. The findings also highlight that positive aspirations are strongest at the top of businesses with more than half of all surveyed CEOs (53%) and CFOs (51%) anticipating substantial growth in the next two years.

“Fundamentally there’s a lot of positivity and ambition out there,” says Stephanie Betant, HSBC UK’s head of global trade solutions. “What we find is that UK businesses are ambitious, and they see international growth as integral to the success of their business.”

However, growth isn’t being pursued at any cost. Profitability remains the top priority for businesses, with respondents citing it as their primary goal both domestically (43%) and internationally (53%). Other key objectives include improving productivity and efficiency and operating more sustainably.

What’s fuelling growth?

While growth may sometimes require the stars to align, it is much more reliant on the intelligent running of a business. Among those surveyed, the research identifies access to capital as the most crucial kick-starter of growth, with almost a third (30%) of respondents highlighting funding as the most important enabler of growth - jumping to 38% among respondents expecting significant growth (compared to just 8% of respondents expecting to maintain/rationalise business growth).

“Access to capital is critical for companies who are looking to supercharge their growth,” Betant explains. “When a company starts expanding internationally, its working capital cycle will lengthen: managing new buyers and suppliers, building inventory and investing will require financing. Mitigating the risk that comes with new counterparts is another key consideration. HSBC UK has deep experience guiding companies in this space. As the world’s largest trade bank, we have access to 90% of global trade flows, with deep experts talking to customers in over 60 markets, this gives us a unique perspective.”

While capital is undoubtedly an integral driver of growth, the research findings highlight how other enablers are important too - and how they vary across different business situations. For example, firms that only trade domestically place a much higher importance on access to technology than those trading internationally, for whom access to talent is an important factor. Step back from specifics though and a macro view emerges that after capital, it is access to third-party experts and effective strategic planning that are the two most significant factors underpinning any prospective business growth.

However, businesses also face significant barriers that can hinder their growth. The most prominent challenges include marketplace demand (41%), resource availability (40%), and supply chain issues (35%). All can be navigated with support from experts who know the nuances of local markets, how to access resources, and who can help navigate supply chain challenges as needed.

“In today’s complex business environment, having the right partners can make all the difference,” says Tait. “At HSBC UK, we’re committed to providing not just the capital, but also the expertise and global network that businesses need to navigate these challenges.”

Leading from the front

The Growth Experience research also uncovers a strong link between effective decision-making and growth, with 98% of respondents identifying this connection and naming it as fundamental, very important or important to a business’ growth. However, the findings also expose a paradox in the leadership skills required to unlock growth and whether these are being put into practice.

While leaders recognize the importance of strategic thinking (51%), conflict handling (48%), and being innovative (47%), many admit they lack proficiency in these crucial areas. For instance, only around one-in-ten leaders (12%) feel they excel at conflict handling, despite its perceived importance as a soft skill essential for growth. Similar gulfs between the skills leaders think they need, and the skills they believe they have, can be seen elsewhere.

Balancing an organisation’s long-term vision versus its short-term focus – at its heart the ability to think strategically – is a skill that just 34% of respondents believe they’re exhibiting clearly, despite more than half thinking it’s vital. 

And when it comes to innovative thinking, there’s a 14-percentage point gap between those who think they need it, and those who think they have it. Clearly there is a gap that needs addressing if UK businesses are to fully realise their growth potential.

“Leadership and decision making is a critical component of success,” Betant says. “Having that combination of business acumen, tech capability, insightful data and execution ability is critical to make that growth strategy successful. Yet what we see in the findings is not only a recognition of the skills that leaders need to help foster growth but an acknowledgement that perhaps leaders have an opportunity to better demonstrate these skills.”

Why these gaps exist may be explained through wider findings in the research, which highlights significant barriers to effective decision-making. These include too many competing voices challenging decisions made within a firm (which 57% of respondents say is an issue), over-deliberating on key decisions (57%), and an overwhelming amount of data (which 59% of respondents said they encountered).

“The value of third parties and consultants cannot be overstated in this sense,” says Tait. “Both can play a key role in not only developing the soft skills of business leaders but also acting as an impartial, objective voice that can cut through otherwise crowded decision-making committees.”

Despite this, trusted voices are important in other places. The most popular method for developing leadership skills is working with consultative partners, with 55% of leaders saying it’s one of their top three ways of improving, followed by ongoing professional development (43%) and completing leadership courses (39%). The value of third parties and consultants cannot be overstated in this sense, playing a key role in not only developing the soft skills of business leaders but also acting as an impartial, objective voice that can cut through otherwise crowded decision-making committees.

Unlocking innovation

Innovation is also seen as a key driver of growth in the research, with 81% of respondents believing there’s a strong link between the two. But what innovation means is up for debate.

“Innovation, when it comes to growth, is many different things,” Betant explains. “It’s problem-solving, it’s differentiating yourself through people, through process, through solutions, and tech plays a pivotal role.”

However, combined, all those are seen as crucial components for growth. Companies are more likely to have innovated and implemented new thinking in their processes (55%) and approach to technology (60%) compared to their products and people. This focus on operational innovation suggests businesses are prioritising efficiency and adaptability in response to external pressures - and chimes with findings that highlight how innovation is seen as crucial for meeting customer needs and solving organizational problems, according to a quarter of respondents.

Yet businesses still face significant barriers to innovation, including a lack of access to technology, the need for more strategic thinking, and insufficient experienced talent that can drive change. The gap between having potentially business-altering data available to hand and being able to actually interpret that data gives Betant pause. “Data is everything,” she says, “but data without the right skills to understand it is a potential pitfall.”

Going global

What is clear from the research is the strong relationship between international expansion and innovation. Businesses not planning to trade internationally are more focused on innovative technologies – which suggests international expansion itself is a form of innovation.

“If you’re not expanding internationally, you’ve got more room in your business to focus on innovation, and develop technologies,” says Betant. “Whereas if you are driven by international growth, innovation remains important, but businesses will need to prioritise and strike the right balance.”

That insight highlights the complicated nature of growth and innovation in today’s global economy. For many businesses, entering new markets is as much about innovation as it is about geographical expansion.

“International expansion requires a unique blend of skills and resources,” says Tait. “It’s not just about having the right product or service; it’s about understanding new markets, cultures, and regulatory environments. That’s where having a globally literate partner like HSBC can make a real difference.”

The growth experience

The Growth Experience research by Raconteur and HSBC UK depicts a UK business landscape that is increasingly ambitious and growth-oriented, particularly when it comes to international expansion. However, it also reveals large perceived challenges in leadership and innovation that must be addressed to fully realise a company’s growth potential.

Accessing capital, third-party expertise, and enabling effective decision-making through both are clear, common threads throughout all the findings. And in an increasingly complex global economy, the ability to leverage these resources effectively will be the key differentiator between those that thrive – and those that simply survive.

“What’s clear from this research is that UK businesses have the appetite for growth,” explains Tait. “Our role at HSBC UK is to provide the fuel for that growth – whether it’s capital, expertise, or connections to new markets. We’re committed to helping UK businesses not just reach their growth ambitions but exceed them.”

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