Optimism high in business sector despite mammoth challenges

Despite UK businesses facing several mammoth challenges, optimism among South West business community remains high.

That is according to new research by the independent asset manager, BOOST&Co, who revealed that 81% of SMEs in the south west are confident about the prospects of achieving growth this year - 39% of those surveyed are extremely confident about their chances.

While confident about their growth prospects, the leading concerns of south east business were addressing the skills shortage, 36% and pandemic recovery 23%.

The study found that the war in Ukraine has adjusted growth plans for 52% of UK businesses, 13% having to terminate specific customers contracts and a further 12% feeling pressure to change suppliers during the past few weeks.

According to the nationally representative survey of 500 business leaders in the UK, the 2022 Geared for Growth report revealed that whilst the ongoing political situation is causing difficulties for businesses, the highest priority for achieving growth among UK business leaders is through investing in technology (29%).

Other priorities for growth among South West business leaders included finding the right talent (36%), building on the growth experienced during the pandemic (16%) and recovering from the impact the pandemic had on the business (23%).

While UK SMEs have felt pressure during the past few years; navigating the ongoing challenges of the pandemic, Brexit and other significant events, the research from BOOST&Co suggests that businesses are indeed managing well and have confidence in achieving their growth ambitions this year.

Research by EY in 2021 found that despite the pandemic, more than 78% of fast-growth companies grew revenues in the preceding 12 months, indicating the agility and resilience of UK firms during the pandemic.

Commenting on the research, Joanna Scott, Managing Director at BOOST&Co, says: “Given the challenges that many firms have experienced during the past two years as well as the worrying political situation globally, it is really positive to see that growth optimism has not waned. In fact, UK business leaders are showing real hopes of growth, with clear goals for how they believe their organisation can achieve it.

“While the challenges are far from over – with ongoing complications from the pandemic and further disruption to the global business market due to current events – many businesses can, and will, continue to thrive.

“Optimism may be high but with a turbulent business market across the UK, listening to SMEs and their concerns will be essential for a successful and flourishing UK economy during the next 12 months," concluded Ms. Scott.

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