Tuesday, 26 June 2012 15:09
39 per cent say the recession has encouraged them to streamline their business and reduce costs, research shows.
Although the economic downturn has been tough on businesses across the UK, new research reveals that businesses are experiencing an upside, using the recession to their benefit and re-evaluating their processes.
The biannual SME Trends Index by Hilton-Baird Financial Solutions questioned business owners about the challenges currently facing their business. When asked whether they had benefited in any way from the economic downturn, nearly four in ten businesses suggested the recession had encouraged them to streamline the business and reduce unnecessary costs. As a result, businesses took action and evaluated their performance and outputs, with 33 per cent reporting they currently utilise their resources more effectively than before.
Further analysis showed that by objectively stepping away to restructure and prioritise their business models, almost a third have gained a better insight to their business. There has also been an obvious drive to reassess outgoings, with 20 per cent stating they are now benefiting from better rates from suppliers and 10 per cent enjoying increased sales due to reduced competition in their sector.
However, the impacts of the double-dip are still prevalent with respondents highlighting their key concerns over the next six months. Once again, generating new businesses was the primary concern for 33 per cent, with the rising cost of materials and fuel the main issue for 20 per cent.
That said, only 28 per cent of businesses said that they couldn’t think of a single benefit arising from the recession. It is clear that instead of viewing the downturn as a hindrance, the majority have taken steps to make the most of the opportunities that have been presented to them.
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