Eight out of ten business leaders believe that today’s economic climate is tougher now than during the recession, according to a new report.
The research, commissioned by Berkshire Consultancy, indicated that the current ‘stop-start’ economic climate continues to test British businesses.
Account Director at Berkshire Consultancy, Sarah Hunter, said: “Despite official figures revealing faster paced growth during the second quarter, impending public sector cuts and a scheduled VAT rise cast a long shadow over a fragile market.”
The study showed that nearly half of business leaders believe that growth is unachievable this year, while 86% feel they lack the skills needed to guide the business through the fragile economy.
However, 65% also say it is impossible to make accurate performance predictions in the current climate.
Hunter added: “Ongoing uncertainty is clouding strategic thinking and leading to a crisis in confidence among UK business leaders.”
However, this pessimism is not shared by all business owners, many of whom feel they have come out of the recession stronger and with a greater focus.
Dominic Lyon is managing director of music management company Young Guns UK, a business which has grown during the recession. He commented: “The recession pushed us to expand in the Middle East where we actually grew the business. While everyone else was thinking about scaling down, we were scaling up.”