We interviewed 300 private businesses over a wide range of industries and regions and despite the changes to the economy in the past few months, the results show that 82% expect the business environment to improve over the next few years. Many are prepared for the uncertainty and their optimism is based on a longer-term approach.
Our research shows that private businesses are striving for greater efficiency and are still willing to explore developing markets in order to grow. More than one in five private businesses are looking to expand into India and China, 18% are looking at Brazil and 15% at Russia.
Ruby Parmar, Head of Private Business, said: “I think the overall message is that private businesses are keen to grow, nationally and internationally, and are mostly in an excellent position to do so, with strong balance sheets and healthy cash balances.”
Private businesses remain cautiously optimistic with 82% expecting the business environment to improve over the next five years.
78% of respondents across the UK expect their revenue to increase over the coming 12 months, and 70% expect their pre-tax profits to grow.
72% of companies have the right people to get them where they want to be in 5 years time but feel that they don’t have the right skills.
71% of respondents said the tax regime was unsupportive of enterprise, compared with 59% in 2007.