The UK’s entrepreneurs are remaining confident about the growth of their businesses despite the current turbulent economic conditions, according to a new report by Deloitte.
The survey shows that entrepreneurs remain ‘bullish’ about their future, with 45% predicting revenue growth in excess of 20% in the coming year.
According to the report’s findings, technology, media and telecommunications businesses are the most positive, expecting an average of 26% growth in the next year and 111% in the medium term. Om the consumer business sector, revenue is expected to increase by 18% in the short-term and 48% over the next three years.
Despite such soaring levels of confidence, over half of the entrepreneurs polled said they have been adversely affected by the credit crunch, reporting a decrease in demand for products and services as well as tightening of lending policies by their bank. Just 17% claimed their businesses are sufficiently robust to remain unaffected by the current credit crunch.
The main barrier to achieving strong business growth is considered to be a shortage of quality people. This issue has prompted over 25% of growing businesses to make recruitment and training of quality people their single greatest financial investment in the next 12 months.
Tony Cohen, head of entrepreneurial business at Deloitte, said that entrepreneurs are demonstrating fierce resilience in the face of adverse economic conditions.
“In spite of the numerous challenges to entrepreneurial business, such as the credit crunch and a lack of quality talent, the relentless thirst for growth and aspiration to yet higher performance is telling within the sector,” he said.
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