What the Autumn Budget 2024 means for Growth-Ready regional businesses

Founded by a team of industry veterans— Jim Odell, Justin Urquhart Stewart, Paul Newsham, Martin Taylor, Michael Mcdowell, and Tony Backhouse—Regionally Ventures is committed to bridging the funding gap for high-growth regional businesses across the UK. With 70p of every £1 traditionally invested in London, regional businesses represent a valuable, yet often overlooked, segment of the market.

The Autumn Budget 2024, presented last week by Chancellor Rachel Reeves, is poised to shape the future of regional investment. With policies aimed at supporting SMEs and enhancing regional economies, there are some significant opportunities for those businesses outside of London that are ‘growth-ready’. 

Firstly, what do we mean by 'Growth-Ready'?

To be truly growth-ready a business needs to demonstrate several key factors to us that signal both resilience and ambition:

1. Strategic Vision and Market Position: A growth-ready business has a clear strategic direction, a deep understanding of its market position, and well-defined goals. This vision is critical for scaling successfully and meeting investor scrutiny and expectations. Businesses that understand their market, know their unique value and have plans to deepen their footprint or reach new audiences are more attractive to investors looking for viable growth.
   

2. A Mindset for Growth: It’s not just about having an ambitious plan of course – it’s about having a mindset prepared to adapt, innovate, and take calculated risks when necessary. Growth-ready businesses exhibit a mindset that’s proactive rather than reactive, with a leadership team open to change and willing to pivot strategies if needed. This flexibility is especially valuable in a fast-evolving economic landscape, where adaptability can be the difference between stagnation and expansion.
   

3. Experienced Leadership and Robust Governance: Investors look for a solid leadership team, often with past experience of scaling businesses. Having a robust board or governance structure that brings a wealth of knowledge, strategic insight, and accountability is key. For Regionally Ventures, growth-ready businesses benefit from the support of mentors or advisors who offer valuable external perspectives, particularly for SMEs looking to mature their operations.
   

4. Proven Track Record or Prior Investment: Although early-stage businesses can still be growth-ready, those with a history of success – whether in terms of financial performance, customer acquisition, or prior investment – show that they’re capable of managing capital effectively. Prior investment can be an encouraging signal to new investors that the business has already attracted confidence from other backers and is using funding wisely to drive growth.
   

5. A Clear Plan for Utilising Investment: Growth-ready businesses not only need investment but also have a precise plan for how it will be used to scale. Whether it’s expanding the team, entering new markets, or investing in technology, a business should demonstrate how the funding will directly contribute to its growth. This clarity of purpose is vital for investors, who want to see that their capital will be put to strategic use, enhance the company’s value and position it for future rounds of investment or a potential exit.
   

6. Scalability and Exit Strategy: For most investors, the ability to scale and a well-considered exit strategy are considered crucial. A growth-ready business has thought through its potential paths for scaling and has a sense of where it might ultimately lead, whether it’s positioning for acquisition, an IPO, or simply growing sustainably within a niche market. This forward-thinking approach reassures investors that the business is building towards long-term objectives and that there’s a defined path to realising returns.
   

7. Eligibility for Government Schemes and Tax Incentives: Finally, growth-ready businesses are often well-positioned to take advantage of government schemes like the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS), which offer tax incentives for investors in qualifying companies. Meeting the criteria for these schemes not only makes a business more attractive to investors but also demonstrates a level of financial and structural preparedness that appeals to Regionally Ventures.

Here’s what the budget means for those growth-ready businesses and how Regionally Ventures supports their journey.

The budget introduced several key measures relevant to businesses across the UK.

• Significant Capital Investment: £100 billion allocated for infrastructure projects over the next five years, creating opportunities for businesses to thrive in regions that benefit from improved facilities.

• Support for SMEs: Expansion of programmes like Made Smarter underscores the government’s commitment to helping SMEs integrate advanced digital technologies and drive innovation.

• Stable Tax Environment: The decision to maintain corporation tax at 25% and continue full expensing provisions ensures a more predictable tax landscape for business planning.

• Continued Emphasis on EIS and SEIS: Welcome news in the form of The Enterprise Investment Scheme (EIS) and the Seed Enterprise Investment Scheme (SEIS) which remain pivotal for regional businesses looking to attract private investment. These schemes offer tax advantages to investors who back qualifying high-growth companies, making them an attractive tool for raising capital​.

EIS and SEIS continue to be essential for early-stage and growth-oriented businesses. The budget’s pro-business stance suggests a supportive environment for these schemes:

• EIS Benefits: The EIS allows businesses to secure investment with significant tax reliefs for investors, which can make regional businesses more attractive prospects compared to their London-based counterparts.
  

• SEIS Enhancements: Recent changes have increased the maximum investment amount and broadened eligibility, allowing more start-ups to access funding and gain investor interest. This aligns with the budget's focus on fostering innovation and economic development beyond London​.

How Regionally Ventures Can Support Growth-Ready Regional Businesses

We offer comprehensive support to help businesses make the most of available investment schemes and funding opportunities. Our expert knowledge of EIS and SEIS ensures that businesses can maximise their appeal to investors and our extensive network of investors is keenly interested in businesses that align with the budget’s focus areas, such as sustainable tech and advanced manufacturing. We help match growth-ready businesses with investors who not only provide capital but also strategic insights for long-term success.

Businesses looking to leverage the opportunities presented by the budget should:

• Assess Their Growth Strategy: Ensure your business model aligns with the eligibility criteria for schemes like EIS and SEIS.

• Engage with Regionally Ventures: Collaborate with us for expert guidance on capital sourcing, compliance, and growth planning.

“The Autumn Budget 2024 reinforces the importance of supporting regional businesses as the backbone of the UK’s future growth. At Regionally Ventures, we are committed to guiding companies through these evolving opportunities—helping them harness investment schemes like EIS and SEIS and secure the capital they need to reach their full potential. This is a pivotal time for growth-ready businesses, and we’re here to ensure they have the strategic guidance and investment connections to thrive.”- CEO, Jim Odell

The Autumn Budget 2024 presents growth-ready regional businesses with new pathways to success, thanks to enhanced public funding, SME support, and the continued strength of EIS/SEIS schemes. Regionally Ventures is here to bridge the gap between ambition and opportunity, helping businesses thrive with the right funding and strategic backing.

Get in touch if you’d like to know more.