The world economy is "on the verge of recovery", having experienced its first decline since the end of the Second World War, according to the International Monetary Fund.
"The advanced economies, hit particularly hard by financial crises and the collapse in world trade, are showing signs of stabilisation, driven mainly by an unprecedented public policy response," the IMF said in its latest World Economic Outlook report.
Read more: http://www.independent.co.uk/news/business/news/recession-is-nearly-over-but-recovery-is-fragile-says-imf-1796339.html
Source: The Independent
Author: Sean O'Grady, Economics Editor
www.ukba.co.uk
Showing posts with label recession. Show all posts
Showing posts with label recession. Show all posts
Friday, 23 October 2009
Sunday, 18 October 2009
Contraction of UK economy revised
The Office for National Statistics (ONS) has revised the figure for the rate of contraction in the UK economy in the second quarter of the year downwards.
The ONS originally reported that Gross domestic product (GDP) declined 0.8% in the second quarter of the year, but this has been reduced to 0.6%.
"There is some good news in the mass of UK data released today, but generally the figures highlight the fragility of the economic recovery," said Vicky Redwood, an economist at Capital Economics.
www.ukba.co.uk
The ONS originally reported that Gross domestic product (GDP) declined 0.8% in the second quarter of the year, but this has been reduced to 0.6%.
"There is some good news in the mass of UK data released today, but generally the figures highlight the fragility of the economic recovery," said Vicky Redwood, an economist at Capital Economics.
www.ukba.co.uk
Saturday, 17 October 2009
Small firms adapting to downturn
Over 70% of small businesses in the UK have developed creative solutions to strengthen their company during the recession, according to research commissioned by the Department for Business, Innovation and Skills.
The study shows that 77% of small companies have adapted their business to cope with the downturn with 26% adjusting working hours, 33% investing in additional staff training and rewards and 65% exploring new product areas.
Just under 50% of respondents that made changes to their business did so to take a pro-active approach to the challenging economic climate and 37% said it was so they were ready to capitalise on the economic upturn when it occurs.
"In the face of a global downturn small businesses have developed and applied practical changes to get the best out of their people and enhance their business," said Lord Young, Minister for Employment Relations.
www.ukba.co.uk
The study shows that 77% of small companies have adapted their business to cope with the downturn with 26% adjusting working hours, 33% investing in additional staff training and rewards and 65% exploring new product areas.
Just under 50% of respondents that made changes to their business did so to take a pro-active approach to the challenging economic climate and 37% said it was so they were ready to capitalise on the economic upturn when it occurs.
"In the face of a global downturn small businesses have developed and applied practical changes to get the best out of their people and enhance their business," said Lord Young, Minister for Employment Relations.
www.ukba.co.uk
Wednesday, 30 September 2009
90% of firms confident over survival
Almost 90% of businesses in the UK are confident that their firm will survive the recession, according to research by Clydesdale Bank.
The survey revealed that 89% of business managers are confident their company will survive the recession - with almost a third 100% certain they will make it through.
Despite the downturn the research also showed that less than a third of companies have seen a reduction in business during the recession.
"These figures are promising and show that businesses are beginning to regain confidence. This is a positive sign - where confidence exists growth often follows," said Mike Williams of Clydesdale Bank.
www.ukba.co.uk
The survey revealed that 89% of business managers are confident their company will survive the recession - with almost a third 100% certain they will make it through.
Despite the downturn the research also showed that less than a third of companies have seen a reduction in business during the recession.
"These figures are promising and show that businesses are beginning to regain confidence. This is a positive sign - where confidence exists growth often follows," said Mike Williams of Clydesdale Bank.
www.ukba.co.uk
Saturday, 19 September 2009
Recovery has started but economy still faces huge risks
The British Chambers of Commerce (BCC) has today published its September 2009 Economic Forecast. Despite a further downward revision in GDP expectations for this year, the BCC is more upbeat about economic growth in 2010, and has reduced its forecast for peak unemployment.
The main features of the BCC forecast are:
The UK will see a large GDP decline of 4.3% in 2009, followed by positive growth of 1.1% in 2010 and 1.9% in 2011. In June we predicted a 3.8% GDP fall for 2009 and a small 0.6% increase in 2010.
The current recession - recording peak to trough declines of 5.5% - is much worse than the recession of the early 1990s. However, it is less severe than the early 1980s recession, when GDP recorded cumulative falls of 6.0%.
Further big increases in unemployment are expected, but at a reduced pace. Unemployment is likely to rise from 2.43 million to a peak of just over 3 million, or 9.6% of the workforce, in mid-2010. In June we predicted unemployment would hit 3.2 million.
Public sector borrowing is forecast to total some 12.5% of GDP in 2009-10 and 2010-11. Public sector debt is set to rise to dangerous levels in the next few years, in excess of 80% of GDP.
The BCC believes that the MPC will use the full £175bn allocated to the Quantitative Easing (QE) programme. Another increase in the size of the programme, to at least £200 billion, will probably be needed to ensure that the economy does not falter.
Read more: http://www.britishchambers.org.uk/zones/policy/press-releases_1/recovery-has-started-but-economy-still-faces-huge-risks.html
www.ukba.co.uk
The main features of the BCC forecast are:
The UK will see a large GDP decline of 4.3% in 2009, followed by positive growth of 1.1% in 2010 and 1.9% in 2011. In June we predicted a 3.8% GDP fall for 2009 and a small 0.6% increase in 2010.
The current recession - recording peak to trough declines of 5.5% - is much worse than the recession of the early 1990s. However, it is less severe than the early 1980s recession, when GDP recorded cumulative falls of 6.0%.
Further big increases in unemployment are expected, but at a reduced pace. Unemployment is likely to rise from 2.43 million to a peak of just over 3 million, or 9.6% of the workforce, in mid-2010. In June we predicted unemployment would hit 3.2 million.
Public sector borrowing is forecast to total some 12.5% of GDP in 2009-10 and 2010-11. Public sector debt is set to rise to dangerous levels in the next few years, in excess of 80% of GDP.
The BCC believes that the MPC will use the full £175bn allocated to the Quantitative Easing (QE) programme. Another increase in the size of the programme, to at least £200 billion, will probably be needed to ensure that the economy does not falter.
Read more: http://www.britishchambers.org.uk/zones/policy/press-releases_1/recovery-has-started-but-economy-still-faces-huge-risks.html
www.ukba.co.uk
Wednesday, 5 August 2009
Recession ‘will end within 3 months’
The UK recession will end within three months, according to a report issued by accountants BDO Stoy Hayward.
The accountancy firm believe that the prompt fiscal stimulus package and bank recapitalisation scheme taken in the UK have helped the economy speed ahead in the race towards recovery.
The BDO Output Index - which measures short-run turnover expectations and order book strength - recently saw largest monthly increase in 13 years, rising from 92.3 in June to 95.1 in July.
"The UK seems to be reaping the benefits of a raft of well-timed and calculated moves to stimulate the economy. In stark comparison, sluggishness and indecision has held the Eurozone back from a quicker recovery," said Alex White, Partner at BDO Stoy Hayward.
www.ukba.co.uk
The accountancy firm believe that the prompt fiscal stimulus package and bank recapitalisation scheme taken in the UK have helped the economy speed ahead in the race towards recovery.
The BDO Output Index - which measures short-run turnover expectations and order book strength - recently saw largest monthly increase in 13 years, rising from 92.3 in June to 95.1 in July.
"The UK seems to be reaping the benefits of a raft of well-timed and calculated moves to stimulate the economy. In stark comparison, sluggishness and indecision has held the Eurozone back from a quicker recovery," said Alex White, Partner at BDO Stoy Hayward.
www.ukba.co.uk
Sunday, 26 July 2009
One in three small businesses unaffected by recession
Six months after the Office for National Statistics (ONS) officially announced that the UK is in recession, a new report from Intuit, reveals how small businesses have been performing over the past 12 months.
The results of the research show that one in four small businesses felt no noticeable effect, and 35% had felt a negligible impact from the recession hitting the UK economy.
On the flip-side, one in twenty small businesses have been impacted so severely that their viability is in question.
Recession survival down to initiative and practical actions
Three quarters of small businesses put surviving the recession down to the strength of their own determination and initiative. Only 23% of respondents felt it had been easy to access external help and advice during the recession.
To survive the recession small business owners have used their initiative and adopted some sound business tactics. The most common initiative, used by 45% of respondents, has been to reduce overheads and tightly manage outgoings.
It may be a surprise to learn that the second most popular step, which nearly a third of small business owners took, was to introduce new products or services. This approach flies in the face of the common opinion that businesses should focus on their core operations during a downturn.
www.ukba.co.uk
The results of the research show that one in four small businesses felt no noticeable effect, and 35% had felt a negligible impact from the recession hitting the UK economy.
On the flip-side, one in twenty small businesses have been impacted so severely that their viability is in question.
Recession survival down to initiative and practical actions
Three quarters of small businesses put surviving the recession down to the strength of their own determination and initiative. Only 23% of respondents felt it had been easy to access external help and advice during the recession.
To survive the recession small business owners have used their initiative and adopted some sound business tactics. The most common initiative, used by 45% of respondents, has been to reduce overheads and tightly manage outgoings.
It may be a surprise to learn that the second most popular step, which nearly a third of small business owners took, was to introduce new products or services. This approach flies in the face of the common opinion that businesses should focus on their core operations during a downturn.
www.ukba.co.uk
Friday, 24 July 2009
New research suggests the recession has levelled out for small businesses
Small businesses are now more optimistic about their immediate sales prospects, according to the latest Quarterly Survey of Small Business in Britain by The Open University Business School in association with Barclays Bank and ACCA. While 49% of small firms reported that sales were down over the year, most notably in manufacturing and construction, fewer firms now expect to cut employment, and 62% of small firms have not changed employment levels over this past year.
Almost half of respondents, especially those employing more than five people, now aim to expand over the next three years. Within this group, 34% have seen an increase in sales over the past year showing resistance against the generally poor performance of the economy as a whole.
The biggest improvements are for hotels and restaurants (up from -20% to +27%) and retail (up from -27% to +23%). However while construction does not appear to be suffering as much as in 1991/92, it is the sector with the greatest net cuts as it saw a 30% cut in employment, 20% cut in investment and a 20% drop in selling prices.
Read more: http://www3.open.ac.uk/media/fullstory.aspx?id=16485
www.ukba.co.uk
Almost half of respondents, especially those employing more than five people, now aim to expand over the next three years. Within this group, 34% have seen an increase in sales over the past year showing resistance against the generally poor performance of the economy as a whole.
The biggest improvements are for hotels and restaurants (up from -20% to +27%) and retail (up from -27% to +23%). However while construction does not appear to be suffering as much as in 1991/92, it is the sector with the greatest net cuts as it saw a 30% cut in employment, 20% cut in investment and a 20% drop in selling prices.
Read more: http://www3.open.ac.uk/media/fullstory.aspx?id=16485
www.ukba.co.uk
Friday, 26 June 2009
The number of new foreign investments in British companies increased by 11% last year, despite the onset of the global economic downturn
Businesses from 53 different countries - the largest variety ever in a single year - invested in UK firms in 2008, maintaining the UK's position as Europe's number one investment destination.
With office rates decreasing, the pound falling against the dollar and a wider talent pool than ever before immediately available due to job losses, foreign companies have seen the recession as a great time to invest in the UK.
"At a time when companies across the world are tightening their belts and focusing their investment in the sectors and countries where it will bring the most benefit, these results are testament to the fundamental strengths of the UK’s economy,” said Business Secretary Lord Mandelson.
Source: UKTI
www.ukba.co.uk
With office rates decreasing, the pound falling against the dollar and a wider talent pool than ever before immediately available due to job losses, foreign companies have seen the recession as a great time to invest in the UK.
"At a time when companies across the world are tightening their belts and focusing their investment in the sectors and countries where it will bring the most benefit, these results are testament to the fundamental strengths of the UK’s economy,” said Business Secretary Lord Mandelson.
Source: UKTI
www.ukba.co.uk
Thursday, 18 June 2009
Business confidence in the UK rose for a third consecutive month in May...
...to its highest level in nearly a year, according to the latest Lloyds TSB Business Barometer.
The survey of more than 200 firms found that 44% expect their business activity to increase during the next 12 months, compared with 35% who stated this in April. Only 16% of respondents expect business activity to decrease, down from 21% who thought this in the previous month.
"While it would be premature to talk of an end to the recession, we should be careful not to overlook the significance of the growing confidence we are witnessing amongst businesses," said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.
www.ukba.co.uk
The survey of more than 200 firms found that 44% expect their business activity to increase during the next 12 months, compared with 35% who stated this in April. Only 16% of respondents expect business activity to decrease, down from 21% who thought this in the previous month.
"While it would be premature to talk of an end to the recession, we should be careful not to overlook the significance of the growing confidence we are witnessing amongst businesses," said Trevor Williams, chief economist at Lloyds TSB Corporate Markets.
www.ukba.co.uk
Sunday, 7 June 2009
The service sector is still in deep recession, but there are also some signs that sentiment is improving
The latest CBI Service Sector Survey also showed indications that the decline in business activity is starting to slow.
The quarterly research, conducted between 29 April and 13 May, covers 179 service-sector firms. They are divided into Business and Professional Services, such as accountancy, legal and marketing firms, and Consumer Services, including hotels, bars and restaurants, travel and leisure.
In Consumer Services, the volume of business fell over the past three months at the fastest rate since November 2001, but because prices rose, the fall in business values was less marked. In Business and Professional Services, values fell even faster than volumes due to record deflation in average selling prices.
However, in both sectors slower rates of decline in both values and volumes of business are expected in the next three months. If realised, the declines in activity would be the slowest since last summer.
Read more: click here
www.ukba.co.uk
The quarterly research, conducted between 29 April and 13 May, covers 179 service-sector firms. They are divided into Business and Professional Services, such as accountancy, legal and marketing firms, and Consumer Services, including hotels, bars and restaurants, travel and leisure.
In Consumer Services, the volume of business fell over the past three months at the fastest rate since November 2001, but because prices rose, the fall in business values was less marked. In Business and Professional Services, values fell even faster than volumes due to record deflation in average selling prices.
However, in both sectors slower rates of decline in both values and volumes of business are expected in the next three months. If realised, the declines in activity would be the slowest since last summer.
Read more: click here
www.ukba.co.uk
Sunday, 29 March 2009
A new breed of entrepreneurs arise from the recession!
Research has shown a new breed of 'super entrepreneurs' is evolving as a result of the downturn.
These business owners, who Darwin would have been proud of, are making themselves fit to survive the current downturn and thrive in the future.
Super entrepreneur profile
The study, conducted by Bibby Financial Services, shows that the the new breed of 'super entrepreneur' is most likely to be:
- Female
- Aged between 45 and 54
- Living in the South East
- Have started their business between 1995 and 1999
- Running a business with a turnover of between £250,000 and £500,000
- Running a business that employs five or more people
- Experienced two downturns including this one
Related statistics from the study
-79% of small and medium-sized firms making, or planning to make, positive steps in order to survive and face economic uncertainty head on.
- 69% of owners and managers claiming the recession has encouraged them to keep a closer eye on their finances.
- 84% of owners and managers also making positive changes specifically in relation to their clients/customers and suppliers.
- 37% are cutting their marketing or advertising and 33% are even going as far as to use their personal savings to ensure the existence of their business.
- 28% are scaling back on production and 26% are having to bring services back in-house
- 7% are downsizing premises or cutting office spend altogether and opting to run the business from home.
- Experience counts
The figures from the Bibby study also show there is no substitute for experience - over half (54%) of business owners and managers have never experienced a prior recession or downturn.
But it is business owners who have ridden out past downturns who are more likely to be scrutinising their finances more carefully, with 81% of business owners who’ve experienced a number of downturns since the early 1980s paying more attention to finances compared to just 64% of those who’ve experienced this recession only.
However, 35% of those who started their business in the last three years know they need to develop their understanding of financial management.
Source: Bystart
www.ukba.co.uk
These business owners, who Darwin would have been proud of, are making themselves fit to survive the current downturn and thrive in the future.
Super entrepreneur profile
The study, conducted by Bibby Financial Services, shows that the the new breed of 'super entrepreneur' is most likely to be:
- Female
- Aged between 45 and 54
- Living in the South East
- Have started their business between 1995 and 1999
- Running a business with a turnover of between £250,000 and £500,000
- Running a business that employs five or more people
- Experienced two downturns including this one
Related statistics from the study
-79% of small and medium-sized firms making, or planning to make, positive steps in order to survive and face economic uncertainty head on.
- 69% of owners and managers claiming the recession has encouraged them to keep a closer eye on their finances.
- 84% of owners and managers also making positive changes specifically in relation to their clients/customers and suppliers.
- 37% are cutting their marketing or advertising and 33% are even going as far as to use their personal savings to ensure the existence of their business.
- 28% are scaling back on production and 26% are having to bring services back in-house
- 7% are downsizing premises or cutting office spend altogether and opting to run the business from home.
- Experience counts
The figures from the Bibby study also show there is no substitute for experience - over half (54%) of business owners and managers have never experienced a prior recession or downturn.
But it is business owners who have ridden out past downturns who are more likely to be scrutinising their finances more carefully, with 81% of business owners who’ve experienced a number of downturns since the early 1980s paying more attention to finances compared to just 64% of those who’ve experienced this recession only.
However, 35% of those who started their business in the last three years know they need to develop their understanding of financial management.
Source: Bystart
www.ukba.co.uk
Tuesday, 10 March 2009
UK firms adapt to recession
Short and medium term business confidence has risen simultaneously for the first time in 13 months........
This is according to the latest Business Trends report by accountants and business advisers BDO Stoy Hayward LLP. The modest rise of BDO’s Output and Optimism indices suggests businesses have accepted the realities of the recession and are adapting their plans to manage against the downturn.
Despite this, the labour market picture remains bleak with BDO’s Employment Index dropping from 94.2 in January to 91.7 in February, suggesting a further 320,000 people will be added to the unemployment register over the next three months. However the increases in both the Output and Optimism Index, which predict economic growth, is a tentative sign that the recession has been factored into confidence and business planning and is in stark contrast to the collapse of these indicators since October.
The result also indicates that businesses are taking swift and decisive action to tackle the challenges of the recession, including halting production or implementing new employment strategies to keep costs down. This tactic is further illustrated in the report which reveals that while there has been a reduction in full time employment figures, part time employment actually rose by 33,000 in October – December 2008.
Peter Hemington, Partner at BDO Stoy Hayward, says: “Optimism remains low and businesses expect the economy to continue to contract, but companies are now adapting their business models for an uncertain future. It’s still too early to say if business confidence has hit rock bottom and we’ve already seen a number of false dawns, but this month’s modest increases are encouraging. We must watch carefully to see if this is the start of an upward trend.”
The report’s Optimism Index, which measures business confidence two quarters ahead, rose to 90.5 in February from 89.9 in January. Similarly, the Output Index that measures order book strength and short run turnover expectations in the next quarter edged up to 88.3 in February from 88.1 in January 2009 - a 29 year low.
Source: BDO
This is according to the latest Business Trends report by accountants and business advisers BDO Stoy Hayward LLP. The modest rise of BDO’s Output and Optimism indices suggests businesses have accepted the realities of the recession and are adapting their plans to manage against the downturn.
Despite this, the labour market picture remains bleak with BDO’s Employment Index dropping from 94.2 in January to 91.7 in February, suggesting a further 320,000 people will be added to the unemployment register over the next three months. However the increases in both the Output and Optimism Index, which predict economic growth, is a tentative sign that the recession has been factored into confidence and business planning and is in stark contrast to the collapse of these indicators since October.
The result also indicates that businesses are taking swift and decisive action to tackle the challenges of the recession, including halting production or implementing new employment strategies to keep costs down. This tactic is further illustrated in the report which reveals that while there has been a reduction in full time employment figures, part time employment actually rose by 33,000 in October – December 2008.
Peter Hemington, Partner at BDO Stoy Hayward, says: “Optimism remains low and businesses expect the economy to continue to contract, but companies are now adapting their business models for an uncertain future. It’s still too early to say if business confidence has hit rock bottom and we’ve already seen a number of false dawns, but this month’s modest increases are encouraging. We must watch carefully to see if this is the start of an upward trend.”
The report’s Optimism Index, which measures business confidence two quarters ahead, rose to 90.5 in February from 89.9 in January. Similarly, the Output Index that measures order book strength and short run turnover expectations in the next quarter edged up to 88.3 in February from 88.1 in January 2009 - a 29 year low.
Source: BDO
Saturday, 7 March 2009
Must your business diversify to survive?
As every small business owner will know, the current economic climate is extremely challenging. The UK is in its first recession since the early 1990's, and there is every indication that the situation will remain difficult for at least the rest of the year.
If your business is struggling then you must ask yourself whether you are doing everything possible to survive. What have you done to diversify your business? Are you and your staff putting in longer hours? Have you diversified your business in terms of staff roles, cross-training and what services and products you are offering your customers?
The economic downturn has changed the way that businesses need to operate. This is not the time to carry on operating the same way that your firm was before the recession; you must adapt to the changing conditions.
Read more here: http://www.newbusiness.co.uk/articles/business-continuity/why-you-must-diversify-survive
If your business is struggling then you must ask yourself whether you are doing everything possible to survive. What have you done to diversify your business? Are you and your staff putting in longer hours? Have you diversified your business in terms of staff roles, cross-training and what services and products you are offering your customers?
The economic downturn has changed the way that businesses need to operate. This is not the time to carry on operating the same way that your firm was before the recession; you must adapt to the changing conditions.
Read more here: http://www.newbusiness.co.uk/articles/business-continuity/why-you-must-diversify-survive
Wednesday, 4 March 2009
Recession Insights - Top 10 Critical Business Priorities
1 Provide excellent customer service. We can’t survive without customers, so don’t forget them. Listen and respond to their needs, demonstrate the value you place in them. Review customer and client feedback formally – this will be the litmus test of what you are delivering (and how) and will help to inform positive changes where necessary. Always go the extra mile for your most profitable and loyal customers.
2 Innovate. Develop new unique products and services to distinguish you from the competition. Focus on those that add tangible value or reduce costs for your customers and clients.
3 Invest in people. Offer customer-focused training and reward high performers. The most talented and valuable members of your workforce are those most able to move on during a slowdown. Introduce simple, cost-effective recognition programmes and allow them the flexibility to work where or when they need to.
4 Maintain quality. If you trade on quality, do not cut costs that are visible to the customer in the short term, compromising your reputation in the long term.
5 Reduce debt and manage cashflow. Tighten internal financial procedures immediately and look to secure longer term contracts where possible. The single biggest regret of struggling businesses was that they did this too late, or not at all, which speaks volumes.
6 Respond to the market quickly. Be flexible. Ccapitalise on your size and ability to change direction quickly. Carry out detailed risk assessments on all areas of your business and customer base – identify ‘safe’ areas to focus on.
7 Prioritise marketing. Do not cut budgets or stop advertising as a knee-jerk reaction to challenging trading conditions. The most successful businesses use slowdowns as an opportunity to grow, share and broadcast their message louder than the competition. Crucially, you need to remind your customers that you’re still in business and instil confidence in your existing clients. Slowdowns also offer greater scope for canny businesses to negotiate for favourable deals.
8 Forecasting accurately and plan realistically. Super SMEs tended to have a ‘slowdown plan’ in place. If you haven’t written one, start now. Encourage open and honest communication with your teams on what is realistic. Revisit old order-books to ensure no opportunities are being missed.
9 Know your market. Increase market knowledge and insight. Be seen as the thought-leader in your field and enable your workforce to become experts through sharing information. Use readily available free research online to boost your expertise.
10 Invest in technologies to help your people. The need to work more efficiently has never been higher up the agenda. Invest wisely in IT solutions focused on optimising your workforce productivity, reducing wastage and enabling smarter (not necessarily harder or longer) working.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
2 Innovate. Develop new unique products and services to distinguish you from the competition. Focus on those that add tangible value or reduce costs for your customers and clients.
3 Invest in people. Offer customer-focused training and reward high performers. The most talented and valuable members of your workforce are those most able to move on during a slowdown. Introduce simple, cost-effective recognition programmes and allow them the flexibility to work where or when they need to.
4 Maintain quality. If you trade on quality, do not cut costs that are visible to the customer in the short term, compromising your reputation in the long term.
5 Reduce debt and manage cashflow. Tighten internal financial procedures immediately and look to secure longer term contracts where possible. The single biggest regret of struggling businesses was that they did this too late, or not at all, which speaks volumes.
6 Respond to the market quickly. Be flexible. Ccapitalise on your size and ability to change direction quickly. Carry out detailed risk assessments on all areas of your business and customer base – identify ‘safe’ areas to focus on.
7 Prioritise marketing. Do not cut budgets or stop advertising as a knee-jerk reaction to challenging trading conditions. The most successful businesses use slowdowns as an opportunity to grow, share and broadcast their message louder than the competition. Crucially, you need to remind your customers that you’re still in business and instil confidence in your existing clients. Slowdowns also offer greater scope for canny businesses to negotiate for favourable deals.
8 Forecasting accurately and plan realistically. Super SMEs tended to have a ‘slowdown plan’ in place. If you haven’t written one, start now. Encourage open and honest communication with your teams on what is realistic. Revisit old order-books to ensure no opportunities are being missed.
9 Know your market. Increase market knowledge and insight. Be seen as the thought-leader in your field and enable your workforce to become experts through sharing information. Use readily available free research online to boost your expertise.
10 Invest in technologies to help your people. The need to work more efficiently has never been higher up the agenda. Invest wisely in IT solutions focused on optimising your workforce productivity, reducing wastage and enabling smarter (not necessarily harder or longer) working.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Tuesday, 3 March 2009
Recession Insights - Winning Behaviour
It is not just lack of investment in technology that characterises under performance in SMEs. Our research found that SMEs are also more likely to have reduced rather than increased training budgets over the past 12 months (37% have reduced training budgets compared to 24% who have increased them).
in a direct reversal, however, we also identified a new breed of 'Super SMEs’ (those that are actually booming through the slowdown) which are more likely to have increased (rather than decreased) training investment (39% have spent more on their training in the past 12 months while 28% reduced their training spend).
Similarly, while overall SME investment in marketing fell in the past 12 months (36% reduced marketing spend while 32% increased it), amongst our Super SMEs, 43% increased their marketing spend, compared to less than one in five who reduced it. There was also a net decrease overall in IT infrastructure spend. 29% spent less on this, while 27% spent more. Amongst Super SMEs 47% spent more on IT infrastructure and just 16% spent less.
The trends remain the same for employee benefits, flexible working and communication technology and new product development. In each instance the general trend amongst SMEs was to reduce spend. However amongst those SMEs which are currently experiencing growth, or have greater confidence in their long-term future, spend was up across the board.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
in a direct reversal, however, we also identified a new breed of 'Super SMEs’ (those that are actually booming through the slowdown) which are more likely to have increased (rather than decreased) training investment (39% have spent more on their training in the past 12 months while 28% reduced their training spend).
Similarly, while overall SME investment in marketing fell in the past 12 months (36% reduced marketing spend while 32% increased it), amongst our Super SMEs, 43% increased their marketing spend, compared to less than one in five who reduced it. There was also a net decrease overall in IT infrastructure spend. 29% spent less on this, while 27% spent more. Amongst Super SMEs 47% spent more on IT infrastructure and just 16% spent less.
The trends remain the same for employee benefits, flexible working and communication technology and new product development. In each instance the general trend amongst SMEs was to reduce spend. However amongst those SMEs which are currently experiencing growth, or have greater confidence in their long-term future, spend was up across the board.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Monday, 2 March 2009
Recession Insights - Mobility & IT
One of the more striking findings of the research is that businesses that have invested strongly in IT infrastructure are currently showing the highest levels of performance. In particular, investment in mobility, thus optimising individual productivity in a climate where staffing levels are being reduced, appears to be emblematic of the ability to plan strategically and weather the vagaries of the economy.
Businesses that are fully enabled for remote and mobile working said that they are more than twice as likely to review their business plan on a monthly basis compared to those firms that have enabled none of their staff for mobile working (34% compared to 16%).
In general we found also that SMEs that have fully mobile workforces are 10% less likely to have been hit by the slowdown and are also 60% more likely to forecast turnover growth compared to SMEs that do not enaAble mobile working.
These figures are symptomatic of the fact that SME are all too often overlooking the most valuable asset of all – their employees.
The upshot is that 45% of SMEs do not believe they have equipped their workforce with the technology to reach their full potential. Only 37% of SMEs say that their workforce are fully equipped to work where and when they want, while just 4 out of 10 say that they provide the training and career development to maximise their workforce’s potential.
In a recent survey for communications company Aavaya, 92% of UK workers said they would find it attractive to work for a company that offered flexible working and 78% said they would consider changing jobs for the chance to work flexibly. Without the requisite tools, understanding and investment to thrive or survive, SMEs ignoring these sentiments risk losing their most unique proposition – the human talent that had previously been attracted away from the corporate world to seek a more exciting and fulfilling working life.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Businesses that are fully enabled for remote and mobile working said that they are more than twice as likely to review their business plan on a monthly basis compared to those firms that have enabled none of their staff for mobile working (34% compared to 16%).
In general we found also that SMEs that have fully mobile workforces are 10% less likely to have been hit by the slowdown and are also 60% more likely to forecast turnover growth compared to SMEs that do not enaAble mobile working.
These figures are symptomatic of the fact that SME are all too often overlooking the most valuable asset of all – their employees.
The upshot is that 45% of SMEs do not believe they have equipped their workforce with the technology to reach their full potential. Only 37% of SMEs say that their workforce are fully equipped to work where and when they want, while just 4 out of 10 say that they provide the training and career development to maximise their workforce’s potential.
In a recent survey for communications company Aavaya, 92% of UK workers said they would find it attractive to work for a company that offered flexible working and 78% said they would consider changing jobs for the chance to work flexibly. Without the requisite tools, understanding and investment to thrive or survive, SMEs ignoring these sentiments risk losing their most unique proposition – the human talent that had previously been attracted away from the corporate world to seek a more exciting and fulfilling working life.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronic
s - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Sunday, 1 March 2009
Recession Insights - Planning & Strategy
The message is clear. Businesses that review their business plans monthly are most likely to be riding the economic storm. According to our research, they are 42% more likely to be unaffected or booming during the slowdown. Businesses who are confident about the future are also three times more likely to have had a strategy in place for a worsened economic climate than those who fear for their survival.
One in twenty SMEs admitted that they don’t really have a business plan of any description (never mind a revised strategy for a global slowdown) while 17% said that their business plan only gets reviewed and revised once a year. At the root of this problem is the fact that 62% of all SMEs have never had to face a slowdown before. They never really needed a plan when times were good, and never anticipated that they would need one for the future. Six out of ten SMEs did not have a plan or strategy in place for a worsened economic climate.
A worrying trend for the wider economy, and indeed the future, is that the ‘young guns’ who have thrived for the past decade or more through good economic conditions were least likely to have put a strategy in place for bleaker times. Two thirds did not have a plan ready for harsher times, compared to 40% of 55 year olds, who by virtue of their age and experience, have seen something similar (if even vaguely) before. The younger working nation have much to learn from mentors of previous slowdowns and recession.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronics - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
One in twenty SMEs admitted that they don’t really have a business plan of any description (never mind a revised strategy for a global slowdown) while 17% said that their business plan only gets reviewed and revised once a year. At the root of this problem is the fact that 62% of all SMEs have never had to face a slowdown before. They never really needed a plan when times were good, and never anticipated that they would need one for the future. Six out of ten SMEs did not have a plan or strategy in place for a worsened economic climate.
A worrying trend for the wider economy, and indeed the future, is that the ‘young guns’ who have thrived for the past decade or more through good economic conditions were least likely to have put a strategy in place for bleaker times. Two thirds did not have a plan ready for harsher times, compared to 40% of 55 year olds, who by virtue of their age and experience, have seen something similar (if even vaguely) before. The younger working nation have much to learn from mentors of previous slowdowns and recession.
Extract from: A Guide To Plain Sailing Through The Recession - Plantronics - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Saturday, 28 February 2009
Recession - Who Is Riding The Storm?
The research pinpoints the types of businesses more likely to be riding the storm rather than being swamped by the waves. So who is riding the storm?
• SMEs with mobile workforces – they are 10% less likely to have been hit by the slowdown
• SMEs with older, more experienced ‘captains’ – more than half of directors/owners aged over 55 are unconcerned about long term survival while just 31% of 35-44 year olds share this confidence
• SMEs who had a ‘worst case scenario’ strategy in place – confident, booming businesses were three times more likely to have had this in place
• SMEs investing more in training, IT & Telecoms, marketing - all are more likely to be riding the storm
• SMEs with a woman at the helm – female-run businesses are 30% more likely to be riding the storm
Extract from: A Guide To Plain Sailing Through The Recession - Plantronics - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
• SMEs with mobile workforces – they are 10% less likely to have been hit by the slowdown
• SMEs with older, more experienced ‘captains’ – more than half of directors/owners aged over 55 are unconcerned about long term survival while just 31% of 35-44 year olds share this confidence
• SMEs who had a ‘worst case scenario’ strategy in place – confident, booming businesses were three times more likely to have had this in place
• SMEs investing more in training, IT & Telecoms, marketing - all are more likely to be riding the storm
• SMEs with a woman at the helm – female-run businesses are 30% more likely to be riding the storm
Extract from: A Guide To Plain Sailing Through The Recession - Plantronics - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
Friday, 27 February 2009
Recession - the regional impact
The impacts on business are being felt on a local level in varying degrees and the study helps to provide a regional SME confidence barometer. Businesses in the East of England display the greatest concern for their long (and short) term survival but those in the Midlands, the South West and Scotland have the greatest confidence in their ability to survive the economic storm (around 45% have few or no concerns about long term survival). The global economic powerhouse of London could even lose its lustre as 28% of in the capital have real concerns over their survival chances.
One of the areas showing the greatest cause for concern is the East of England. While 66% of SMEs overall say that they expect profits to fall in the next six months, in the East the figure rises to 79%. 55% of those business fear they may not survive for another 12 months. But help is at hand should businesses be prepared to look for it. The East of England Development Agency’s takeITon campaign is aiming to raise awareness of the benefits of improved IT among businesses, providing them with a package of support measures that will help boost productivity and ensure their businesses are fit to ride out the storm.
“A strong infrastructure has the ability to drive business success. If we can encourage businesses across the region to adopt improved practices, they will reap the rewards in productivity and efficiency which, in turn, will benefit the economic prosperity of the region as a whole.”
Jan Pinkerton, Head of Business ICT and Intelligence at the East of England Development Agency
Extract from: A Guide To Plain Sailing Through The Recession - Plantronics - www.plantronics.com.
The full guide can be downloaded here: http://www.sme-guide.co.uk/
www.ukba.co.uk
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