Positive outlook in PwC business survey
Scots are most positive — over 80% of private business leaders in Scotland believe they are over the worst, says PwC
Private business leaders in Scotland are more confident in their future than other UK regions, despite the current recession, a survey by PricewaterhouseCoopers (PwC) LLP has found.
81.1% predict that, rather than decline, their business situation will improve or stay the same in the next 12 months — the most positive region according to results from the forthcoming PwC Enterprising UK 2009 survey.
Encouragingly, half of respondents expect things to get better in the next year, and the level of optimism increases significantly with time. Looking further ahead to the next 24 months, Scotland again responded more positively than all but one of the UK regions with 78.4% of Scottish business leaders saying the outlook for their business will be better.
The survey of business leaders in Scotland found that only 18.9% expect things to get worse in the next 12 months — significantly less than the other regions. For example 36.6% of businesses in West and Wales predict things will get worse with 35% in Northern Ireland agreeing.
Dave Clarkson, partner and leader of private business services at PricewaterhouseCoopers in Scotland, said:
- "This survey clearly shows that the renowned Scottish entrepreneurial spirit is indomitable and refuses to be broken even under such extraordinary economic conditions. Despite the challenges faced over the last 12 months as a result of reduced access to finance, the weak pound and increases in the cost of borrowing, these businesses have held their nerve and retained control of their own destiny, embracing strategies that have seen them not only survive but grasp fresh opportunities.
- The confidence of these owners is key to economic recovery in Scotland and the UK. It is therefore crucial that Scottish and UK governments give them the backing they require.
- We are already seeing the distinct issues faced by family businesses on the radar of both the Scottish Government and universities ??? it has taken a long time for this to happen but doors are opening and progress is being made which we very much welcome. We are also beginning to see a little more activity in terms of lending to private businesses but processes need to be speeded up."
The UK has seen targeted measures work well in the past to underpin an enterprise economy, such as the introduction and sustaining of lower tax rates for long-term investment in trading businesses, but that regime has now gone.
Questions and responses to the market confidence sector of the report illustrated above were:
| Compared to the present situation how do you expect your business situation to change over the next 12 months? Do you expect it to get: |
|
| A lot worse | 2.7% |
| A little worse | 16.2% |
| Stay the same | 35.1% |
| A little better | 32.4% |
| A lot better | 13.5% |
| Don't know | 0% |
| And compared to the present situation how do you expect your business situation to change over the next 24 months? Do you expect it to get: |
|
| A lot worse | 0% |
| A little worse | 13.5% |
| Stay the same | 8.1% |
| A little better | 51.4% |
| A lot better | 27.0% |
| Don't know | 0% |