OPTIMISM has grown among owner-managed businesses in the North East according to the latest findings of a Baker Tilly survey, but the region remains cautious in its outlook for the future.
Conducted by YouGov among 276 owners and senior executives of private businesses for the Baker Tilly Owner Managed Business survey, which revealed that just less than a third (30%) of respondents in the region have a positive outlook for their business.
This shows an increase on the figures from Baker Tilly’s first Owner Managed Business survey when, in 2009, just 20% of respondents were anticipating increased sales in the future.
Jim Meakin, office managing partner at Baker Tilly in Newcastle, says: “We are greatly encouraged that our survey indicates a significant increase in optimism against the levels of two years ago. This could be indicative of greater preparedness in dealing with the current economic challenges which, particularly in our region, remain significant.”
The number of OMBs feeling positive about the outlook for the wider sector within which they operate drops to just one in ten, with 70% of OMBs remaining wary about the outlook for the North East region as a whole.
Meakin added: “This information suggests that most businesses are less confident about the wider regional business environment than they are the immediate performance of their own business.
“Despite some indications of returning confidence this is a clear indicator that the region faces a continued period of challenge to rebuild confidence.”
The national survey also revealed that taking business from failing competitors is the primary opportunity for companies, according to 42% of the survey respondents, who also reported that reducing costs is a key opportunity (23%). New technology growth and increased demand for emerging markets both also ranked highly (16%) as opportunities.
Downturn in demand is still the biggest threat to business with 32% of respondents indicating that it is a major threat. Other major threats include public sector cuts (30%), increased inflation and rising fuel costs (both 29%).
