More than eight in ten UK growth businesses remain confident about their expansion prospects over the next 12 months, despite a challenging economic backdrop. That's the headline from a new BGF survey of 172 portfolio businesses, conducted in September 2026 ahead of the Government's October Budget.

The findings reveal investment priorities among the surveyed BGF portfolio businesses: expansion into new markets, technology and digital transformation, people and skills development, and product innovation are all on the agenda.

Growth Ambition Remains Strong Despite Headwinds

The BGF Pulse Survey, conducted across multiple sectors and regions, shows that 82% of respondents expressed confidence in their growth prospects. The survey also captured real operational pressures. Rising costs remain the biggest concern, cited by 55% of respondents, followed by slower demand (47%) and regulatory uncertainty (30%).

Yet these pressures have not derailed ambition. More than half (54%) of growth businesses plan to invest in UK or overseas expansion over the coming year. A similar proportion—45%—are prioritising technology and digital transformation, while 40% are committing resources to people and skills development and another 40% to product or service innovation.

Andy Gregory, CEO of BGF, commented: "The backdrop to this Budget is undoubtedly challenging, but it hasn't diminished the ambition of the growth businesses we work with up and down the country. More than eight in ten remain confident about their prospects and are continuing to invest in new markets, technology, people and innovation."

What Growth Businesses Want from Government

The survey asked respondents what measures would make the greatest difference to their ability to invest and grow. The top priorities are striking:

• 73% believe the Government needs to demonstrate that it rewards entrepreneurship
• 65% want greater support for growth through investment incentives
• 45% identified better access to growth capital as a priority for supporting regional business
• 41% highlighted the importance of supporting technology adoption and innovation to drive regional growth
• 36% called for a reduction in red tape
• 80% said changes to Capital Gains Tax would influence their decisions on future investment or business expansion

These priorities signal a consistent message from growth business leaders: access to capital, reduced regulatory friction, and support for innovation matter to investment decisions across the UK.

Access to Capital and Long-Term Growth

The survey underscores how crucial patient capital is to growth strategy. Gregory added: "These businesses want to grow, and creating a stable, supportive environment will give them the confidence to keep investing. Combined with access to long-term growth capital, that ambition can be a powerful driver of sustainable growth across the UK."

For founders considering expansion, the findings highlight both opportunity and real constraints. While expansion appetite is high, the prominence of cost pressures and demand uncertainty means that capital access remains essential.

Expansion, Tech, and People: The Investment Priorities

The data shows that growth businesses in the BGF portfolio are prioritising investment across three areas. Technology and digital transformation feature prominently at 45%, while investment in people and skills is cited by 40%, as is product or service innovation.

For UK entrepreneurs scaling operations, the BGF survey offers a useful snapshot: among the surveyed portfolio, growth remains the dominant mindset, but it is tempered by awareness of cost headwinds, demand softness, and the importance of capital access to realise expansion plans.