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Entrepreneurs positive about businesses, but unsure on economy

Some of the UK’s top entrepreneurs remain pessimistic about the economic climate over the next 12 months, but show positivity about their own enterprises.

Results from the Investec Entrepreneur Confidence Index, which tracks the confidence of 48 mid-market entrepreneurs, show that 33% expect the UK economic climate to deteriorate.

This is nevertheless an improvement on findings from December last year, when nearly half of respondents expected the economic climate to get worse.

Despite relative negativity around the economy, the vast majority of entrepreneur respondents expected their businesses to grow over the coming months.

Only 4% expected revenue to decline, and 87% expect it to grow, with just over one in four envisaging growth of over 20%.

Ed Cottrell, Investec said: “A significant percentage of the entrepreneurial class still expect worse to come for the UK economy, but we are encouraged by the fact that there is a slight improvement in confidence levels when compared to the end of last year.

“However, what is clear from our findings is that many successful entrepreneurs still believe that there are considerable business opportunities for them, and the majority are planning to grow their UK enterprises.”

“In terms of how they intend to grow, one in three (34%) say it is ‘very likely’ that they will launch new companies or products within the next 12 months, and 41% say it is ‘quite likely’ that they will do this. Growth will also be fuelled by an increase in exports.

“56% of entrepreneurs interviewed expect to enjoy an increase in the exporting of their goods over the next year, compared to only 4% who anticipate that their activity here will fall. Similarly, 51% expect their strategic exposure to new international markets through customers, suppliers and production, will increase, with only 2% expecting a decline.

“We are encouraged by the growth plans of many mid-market entrepreneurs, and this should have a positive effect on the UK economy. For example, 63% of entrepreneurs interviewed expect to see their workforce grow in number over the next 12 months, and 40% anticipate that their wage and employee benefit bill will increase, compared to 11% who expect it to fall.”

This was posted in Bdaily's Members' News section by Tom Keighley .