The findings of our survey, undertaken in June-September 2011, provide insights into longer term economic trends in business growth, globalisation and the regulatory environment.
Key findings from the UK report
Growth
Since the UK emerged from recession the proportion of businesses reporting growth has recovered, although it has not yet returned to 2007 levels.
Other key findings:
- Six in ten businesses expect to grow their turnover over the coming 12 months.
- Roughly half of growth in the economy will come from the UK’s c.5,890 large (250+ employee) firms. This suggests that policy-makers need to give at least as much consideration to the needs of larger businesses as to those of smaller businesses.
- Two in ten businesses expect to grow their turnover by 10% or more over the coming 12 months. These higher growth businesses are hard to spot, as they have surprisingly similar characteristics to businesses in general. This represents a challenge to policy-makers seeking to direct support at firms with ambitions to expand.
- Higher growth businesses are more likely to be exporters expecting to grow overseas sales, which undoubtedly explains their high propensity to be more positive about globalisation than those not expecting to grow.
- The majority of growth in employment in the private sector is likely to be created by SMEs.
- Increasing profitability and turnover are the key objectives for businesses over the next 12 months.
- Attitudes to the business friendliness of the UK regulatory and tax environment have become less favourable since 2010, especially for medium-sized firms.
- Competition in the marketplace and customer demand are the other main challenges to business performance at this time.
Globalisation
The perceived likely impact of continued globalisation remains more positive than negative, although the proportion of businesses believing that the overall impact will be negative has risen since 2010.
Other key findings:
- The majority of businesses have some form of global business engagement, primarily through imports and exports, and this remains strongly related to company size.
- The proportion of exporters who report growth in international sales has recovered to 2007 levels but is not expected to rise over the next 12 months.
- Overall, 7% of non-exporters claim they are definitely planning to start exporting over the next two years.
- Businesses in the Production industries are more likely than those in Services to be globally engaged, with manufacturers more likely than businesses in other sectors to export or import.
Key findings from the Global report
Growth
Over half of businesses in the Global Enterprise Survey 2011, in all global regions, expect turnover growth in the next 12 months, especially those in The Gulf and Africa.
Other key findings
- Improving profitability is the key objective for most businesses in the survey, although in the Americas and The Gulf, turnover growth and increased profitability are equally likely to be businesses’ main aim for the next 12 months.
- Finding new markets and customers is seen as the greatest business opportunity for the next 12 months. This includes expansion beyond their home market for some, particularly those in the Asia-Pacific region. The development of the East
- African Community Free Trade Area is also expected to offer opportunities for some businesses in Africa.
- Africa is the only region where the proportion expecting export growth in the coming year far exceeds that for the previous 12 months. In all global regions, over one third of non-exporters are considering starting in the next two years.
- Businesses in the Asia-Pacific region and The Gulf are most positive about their local regulatory and tax environments. In the
- Americas, specifically the US A, attitudes to the business friendliness of the regulatory and tax environment have become less favourable since 2010.
- Competition and customer demand are the main challenges to business performance and will remain the primary focus over the next 12 months. In addition, a significant minority of businesses in the Asia-Pacific region expect labour market challenges to increase over the next 12 months.
- The recent unrest in The Gulf is most likely to have had an adverse effect on businesses in Europe (ex UK) and the UK.
Globalisation
The majority of businesses interviewed in the Global Enterprise Survey 2011 are globally engaged – that is they sell goods/services abroad, outsource to overseas suppliers or have business operations overseas – and most are positive about the anticipated impact of continued globalisation of markets.
Global Enterprise Survey Report 2011 - Asia-Pacific
Global Enterprise Survey Report 2011 - Gulf
UK Enterprise Survey Report 2011 - regional reports
Rate this article
Voting has now ended.