Friday 8 June 2012
Entrepreneurs need to get used to growing their companies in an uncertain economic climate, it has been claimed.
John Longworth, director general of the British Chambers of Commerce (BCC), said "the new norm is to have a level of uncertainty".
"Businesses need to get their heads around that risk, factor it into their plans, and start to invest," he claimed.
"We are not going to go back to the pre-recession situation any time soon so we have got to get used to this new environment and trade."
Mr Longworth noted that trade picked up strongly towards the end of 2011, with small firms attracting new customers and boosting sales.
However, he explained that many of these companies were held back by a lack of access to finance, meaning their growth rates ultimately tailed off.
Companies need to factor issues such as finance and business risk into their growth plans, the BCC chief suggested.
He noted that the economy has reacted to the eurozone crisis "quite strongly", and this means growth remains curtailed in the UK.
However, the BCC is predicting a 1.9 per cent rise in gross domestic product during 2013, and businesses need to be properly positioned to claim a share of the extra consumer spending.
"It’s a sort of ‘darkest before the dawn’ scenario, where this year is going to be a little gloomy and then next year, much stronger growth," Mr Longworth predicted.
Posted by Jenny Arthur