Entrepreneurs in optimism shocker

A survey suggests half of entrepreneurs are feeling optimistic about the next few months. Say what?

by Emma Haslett
Last Updated: 11 Jul 2011
The sun may have his hat on, but we’ve got a much better reason for saying hip, hip, hip hooray: a survey from Investec Bank has suggested that entrepreneurs are, on the whole, feeling pretty optimistic about the next few months. Apparently, half of business owners believe the economic climate’s going to pick up over the next year – which is admittedly less than the 56% recorded six months ago, but still a pretty good reason to be happy and gay. Even though you would kind of expect entrepreneurs to be cheerier than the average punter…

The survey, of 50 entrepreneurs, found that the majority are expecting their profits to increase over the course of the next year, while two in five are planning to launch a new company or product. That’s compared with just over a quarter in December 2009, when the economy was at its worst. Even more encouraging is the fact that a very respectable 86% expect the profitability of their businesses to increase over the next year, while a quarter expect a ‘dramatic rise’. Remarkable.

Of course, it’s not all going to be plain sailing: the business owners surveyed said they’re still feeling the pinch of falling demand (in part caused by the VAT increase), as well as exchange rate volatility. And a third (possibly public sector suppliers) added that Government spending cuts are affecting their businesses.

Now, a survey of a mere 50 entrepreneurs is unlikely to be completely representative of all the small business owners toiling away in the UK. But it’s still an encouraging outcome: after what’s been a pretty gloomy few months for UK plc, the fact that a few business owners now feel there’s room to grow should be very encouraging – not least to George Osborne and co, who are depending on the private sector to help kick-start the economy. And we’re always keen on a bit of good news to kick off the week…

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