Insight from our experts

UK business leaders see opportunity to 'leapfrog' competition during the recession.

A survey of business leaders at our recent series of events shows that people still see opportunities despite the current climate. Our research revealed that businesses leaders are transforming the way they operate and actively seeking growth opportunities.

Our 'Turning the Corner' survey found corporate attitudes remained focused on competition over consolidation as 54% of the 305 business owners and managers questioned viewed the challenges faced by competitors as their key recessionary opportunity, followed by a third (31 per cent) who viewed staff loyalty, retention and productivity as their greatest opportunity during the downturn.

The research also revealed strong evidence that the recession was significantly and permanently transforming the UK economy, with 60 per cent of businesses claiming their organisation has been transformed for good due to the impact of recession, while less than a quarter of companies have continued to operate unchanged.

These results show that far from being focused solely on survival, many companies are using this period to make a renewed push for growth and market share. At Barclays Commercial we are also noticing a grass roots economic transformation in the UK as businesses change what they produce and how they produce it en mass. This transformation is one that businesses and banks alike are working hard to understand and plan for.

In an interesting twist on cash flow, it appears late payments (37 per cent) are in fact causing greater pressures than a lack of demand (34 per cent). And in a boost for free trade supporters, only one per cent of business leaders surveyed said protectionism would help their sector through the recession.

Asked when their business would return to a sustained growth phase, 24 per cent claimed they continued to grow, while another 60 per cent envisioned a return to growth within 18 months. Just three per cent of businesses did not expect to return to sustained growth within two years.

Encouragingly, more than a third of businesses pointed to their banks as the single most important resource during the recession, second only to customer base. Banks must evolve quickly in the current climate, and Barclays Commercial has responded through the Turning the Corner programme, offering practical advice and support for business operating through the recession.

Other survey findings include:

  • 62 per cent of business owners/managers said they were currently streamlining their business processes to combat recession.
  • More than a third of UK businesses (35 per cent) are helping their customers to combat recession in order to tackle the recession themselves.
  • 37 per cent said they are diversifying product and service offerings in order to protect against the recession