Optimism grows amongst UK CEO’s for future growth

Recent research has been completed by Vistage International which has shown that most CEO’s in the UK are optimistic about the growth of the businesses over the following year. That said, the research showed that they are well aware that there are risks to be faced, but the overall mood is optimistic.

The research is titled the CEO Confidence Index and it has shown that 70 percent of the heads of small companies have said that they expect their revenue to increase over the next year. The survey also showed that because of this increased revenue most companies are going to be increasing the number of staff that they are employing.

Profitability was also expected to improve by these chief executives and over half of the respondents said that they expect their profits to increase in the short term. It is not all good news however and many chief executives were less optimistic when it came to factors that were outside of their control. Nearly 80 percent of respondents stated that they are concerned about the effect the Euro crisis will have on their business operations in the UK.

When the business heads were asked to identify what they thought was the most problematic issue for small businesses in the country, one fifth of all respondents stated that the current economic situation is the biggest challenge. Interestingly, nearly half of them stated that maintaining short-term profitability is a serious concern.

Despite the amount of information being published in the press about how small businesses are struggling to find credit from the big banks, only 33 percent of respondents stated that the ability to obtain credit was a major concern for their companies over the next 12 months.

This report is certainly interesting and perhaps shows a brighter picture for the economy than people might be expecting.