Business optimism remains high

Business optimism high despite challenging months ahead

Andrew Griggs, Senior Partner, Kreston Reeves

The business environment has never been so uncertain. The impact of Brexit, the global pandemic and now conflict in Ukraine is likely to be felt for many years to come, bringing new challenges and change. So too will the mitigation of climate change, the continuing impact of technology and changing working patterns. For many businesses, it is difficult to know what tomorrow might hold.

That is why we conducted a nationwide research project where we explore the issues, constraints on growth, priorities and plans for the future of 652 business leaders across the UK. Businesses must continue to look ahead and shape their future.

Our research, published in a report called Shaping your future, suggests businesses are incredibly confident for their future but are facing significant challenges over the next two years, with reduced cash reserves, stressed supply chains, and a tough recruitment environment.

The findings from our Shaping your future report include: • 39% expect to see turnover increase by up to 25% in the next 12 months, and 27% expect turnover to increase by between 26% and 50%. • 23% of businesses are prioritising training and upskilling their workforce and 20% on staff retention to address recruitment challenges. • A third of businesses surveyed expect to fund future growth through retained profits and organic company growth. • Over half (56%) say they are exploring merger and acquisition (M&A) opportunities over the next 12 months.

It is encouraging, therefore, to see businesses so confident for their future – 87% of the businesses we spoke to are ‘confident’ or ‘very confident’ about the future of their business.

It is important, now more so than ever and with the help of Kreston Reeves, that business leaders take stock, understand those pressures facing their business, identify and plan for future pinch points, and shape the future they want for their business.

You can download a full copy of the report by visiting www.krestonreeves.com/shapingyourfuture.

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At FSB our mission is to help smaller businesses achieve their ambitions. We are the UK’s largest grassroots campaigning group promoting and protecting the interests of the self-employed and smaller business owners. How can FSB help your business?

Right from the outset, FSB members have access to a range of services, including: • 24/7 legal, tax and employment advice line • Debt recovery service • Range of local and virtual events - open to all • An extensive online legal hub with over 1,300 documents and templates • Easy access to funding • Specialist hubs including our start up hub fsb.org.uk/start

To find out more or to arrange a meeting with your local Membership Advisor, call Jane Martin on 07583 642202 or email Jane.Martin@fsb.org.uk

FSB Business Essentials Membership starts from £147 per annum with a £30 registration fee in the first year. This rate is applicable to businesses with no employees. Rates increase depending on your number of employees. Please see the website for full details of subscription rate bands. Registered Office: National Federation of Self Employed and Small Businesses Limited, Sir Frank Whittle Way, Blackpool Business Park, Blackpool, FY4 2FE. Registered in England No. 1263540.