Partner Article

Businesses plan for growth

New research shows that businesses in the North of the UK are preparing for growth despite the impacts of the economic downturn.

The Institute of Chartered Accountants for England and Wales (ICAEW) Enterprise Survey 2009 says that the effects of the downturn could last until 2011, yet most businesses still plan to grow turnover in the years to come.

The survey suggests that Northern businesses remain more positive than the UK average, with 79% planning annual turnover growth over the next two years (above the UK average of 66%).

Keith Proudfoot, ICAEW Northern Regional Director, said: “The survey demonstrates that businesses are focusing on longer-term competitiveness issues.

“The government should follow this lead. Despite the serious impact on companies, the resilience of UK plc shines through with the majority planning growth.”

The business objectives of Northern businesses are much in line with the UK picture, with 38% seeking increased profitability as their key objective.

The issue of regulation continues to dominate as 45% of companies nationwide believe the system is ‘very’ or ‘fairly’ business friendly.

Keith Proudfoot added: “Companies more than ever need a supportive business environment. As well as less regulatory and taxation legislation, there needs to be proper consultations on any proposed changes and enough time and support to get to grips with it all.

“This has not been the case in the past. At a time when there is so much reliance on business to stabilise and grow the economy after recession these results should send serious alarm bells.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .