FINANCE
ADVERTISING FEATURE
Gauging business sentiment across the South West
By Simon Tombs , Managing Partner at Monahans
As an accountancy firm , it is crucial that we keep our finger on the pulse of market sentiment and the unique challenges that our clients face , to ensure the service we offer continues to fit their evolving needs .
A challenging 12 months It is no surprise that the last 12 months have been challenging for businesses of all sizes . The primary issues highlighted in our South-West Market Research Report include rising inflation and increasing operational costs , rising energy prices and generating new business , with a reduction in spending due to interest rates climbing above 5 %, compounding these . These factors have posed significant hurdles , especially for small businesses with 11-50 employees , with nearly half ( 46 %) identifying these economic pressures as their greatest challenge . It also revealed that over a quarter ( 28 %) of organisations have implemented redundancies over the past year .
Optimism for the future Despite challenges , overall market sentiment remains positive . While only a third ( 31 %) of micro businesses feel they are in a better position than a year ago , a substantial majority of small ( 70 %), medium ( 57 %) and medium / large ( 73 %) businesses reported improved conditions .
Financial performance Businesses are also reporting growth , with nearly half ( 47 %) seeing an increase in turnover from the year before , averaging a rise of 32 %. Only one in five ( 19 %) reported a decrease in turnover , and as the economy stabilises , we hope to see this number reduce . Rightly so , the majority of businesses are largely feeling optimistic , which overrules the ‘ doom and gloom ’ narrative seen in the news agenda . The fact that half of businesses have reported increased turnover whilst navigating turbulent financial conditions demonstrates a level of resilience and optimism , which puts them in good stead to capitalise on improving market conditions . We recommend that businesses continue speaking with business advisors and accountants who will support them in effectively managing cashflow and implementing strong financial plans , to best prepare them for anything thrown their way .
“ the majority of businesses are largely feeling optimistic , which overrules the ‘ doom and gloom ’ narrative seen in the news agenda .”
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