UK entrepreneurs holding firm in tough conditions
Over 90% of the UK’s entrepreneurial businesses expect to grow their revenues in the next 12 months, according to the results of the annual Entrepreneurship UK report by Deloitte, the business advisory firm.
The survey of nearly 350 entrepreneurs from across the UK reveals that over half (56%) expect to generate at least 10% revenue growth over the coming year. 36% forecast growth over the next 12 months to be a maximum of 10%, while just 8% project zero or negative growth, down from 20% in 2009.
In the longer term, nine out of 10 entrepreneurs forecast double digit revenue growth for their business over the next three years, with four out of 10 projecting growth to exceed 50%.
Raising and generating cash remains a high priority for entrepreneurs as 46% of respondents reveal they are actively stockpiling and retaining cash within their business. A fifth (22%) have less cash than at the same time last year, but say they have enough to get by, whilst a further fifth are monitoring their cash position daily and making decisions as needed.
Tony Cohen, head of entrepreneurial business at Deloitte, says: “Last year, cost reduction was seen as the quickest and simplest way to bolster the balance sheet. It was a priority for entrepreneurs meaning the expansion of their business – the driver of revenue growth – took a back seat. However, this year the vast majority of entrepreneurs expect positive growth over the next year suggesting that some of this cash will soon be invested in growth strategies.”
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