Press Release
Business confidence plummets but entrepreneurs see opportunities in downturn
Recessionary fears, falling house prices and soaring interest rates have given entrepreneurs’ confidence a beating in 2008.
Business confidence is at a three-year low amongst entrepreneurs. The latest Tenon Forum research reveals that just 61 per cent of entrepreneurs are feeling upbeat about the year ahead, in stark contrast to 86 per cent of owner-managers 12 months ago and 78 per cent in 2006.
The number of entrepreneurs making concrete plans to weather a downturn has risen by 15 per cent since 2007 – from 70 per cent to 85 per cent.
Preparations for the downturn include; reducing non-essential spending such as client entertaining (47 per cent), better servicing of clients to gain a competitive advantage (43 per cent), a third are not hiring any new staff and a quarter are reducing capital investments.
Despite this, close to half (47 per cent) of entrepreneurs remain upbeat and believe the looming recession will present opportunities for their company. These range from the opportunity to win clients from competitors (51 per cent) to the chance to grow their business organically (36 per cent). Whilst a quarter (26 per cent) see an opportunity to acquire struggling rival businesses as the credit squeeze tightens its grip.
When it comes to seeking opportunities in the downturn, those who have previous experience of economic downturn seem more upbeat than those who haven’t. Half of those who’ve experienced recession can see potential opportunities, compared to only 43 per cent of those who haven’t – implying that this experience is boosting entrepreneurs’ confidence when it comes to staying afloat.Carl Jackson, Head of Tenon Recovery, commented:
“With so much talk of recession in the media, it’s not surprising that entrepreneurs are feeling relatively downbeat, compared to the last two years. It is, however, very encouraging to see that entrepreneurs are aware of the opportunities for their businesses and a significant proportion are actively seeking opportunities during the downturn.
“However, entrepreneurs do need to be vigilant when it comes taking risks in the face of a potential recession. By ensuring they have robust business plans in place, SME owners should be able to see their business survive and thrive through the tough times that may be ahead.”
Entrepreneur and Tenon Forum think tank member Rhodri Ferrier, founder of Bulldog Natural Grooming added:
"We can definitely see opportunities for our business in the predicted downturn – services, such as advertising rates, are likely to come down and our male grooming products are very competitively priced in the mainstream. As a fairly young business, we see it as a golden opportunity."
Entrepreneurs in London see the most potential opportunities from the downturn (53 per cent), closely followed by those in the East of England (47 per cent), the East Midlands (46 per cent) and the South West (46 per cent).
Ends.
For more information or to arrange an interview with a Tenon Forum spokesperson or case study, please contact:
Sarah Westonon 020 7419 7323, sarah.weston@bbpr.com
Notes to editors
About Tenon
Tenon is a leading provider of accounting and business advice to entrepreneurs, providing clients with expertise in Business Services, Tax, Financial Services, Corporate Finance, Recovery, Outsourcing and Forensic Accountancy. Tenon is the 9th largest UK accountancy firm with over 1900 staff UK wide with a turnover of £137.1m. Operating through a network of 46 offices, Tenon is able to offer local expertise but with the backing of a national plc. Tenon is a sponsor of the National Business Awards and the award category is the 'Tenon Award for Entrepreneurial Spirit'. To learn more, please visit www.tenongroup.com/nba
About the Tenon Forum
A regular survey of SMEs is carried out every six months for the Tenon Forum. These findings, combined with the analysis by an independent think tank of entrepreneurs, form the Tenon Forum report. The Tenon Forum is an independent think tank made up of leading entrepreneurs from the UK’s small and medium sized business community. The Tenon Forum Think Tank meets to analyse issues arising from this research.
About the research
YouGov interviewed 1,010 private sector senior managers and above from small and medium businesses with between 5 and 499 employees. Research was carried out online between 25th April and 5th May 2008. The survey covers all business sectors across the whole of England, Scotland and Wales. Results have not been weighted. YouGov is a member of the British Polling Council.
