Feelings of confidence among entrepreneurs about the prospects of this quarter have seen a jump of nearly 100% this quarter compared to the last quarter. This feel good factor has led to a decrease in the perception of market risk among the owners of SME in Britain. This is the finding of a survey conducted by Zurich, a leading insurance company.
This survey, called Zurich SME Risk Index, measures the perceived risk levels by the entrepreneurs of SME’s. It has fallen from a level of 44.55 to a modest 43.41 in a space of a quarter. In comparison to nearly 35% entrepreneurs last quarter who felt that their business faced higher risks now than before, only 28% feel so this quarter.
The survey involved over 500 decision makers in SME’s in Britain as these people were asked questions by YouGov. While only 20% of the respondents felt confident about the economic conditions in the last quarter, this percentage jumped to nearly 38% this quarter.
It is believed that the perceptions of risk of market and business are good indicators of business growth in future. It is these perceptions that result in investments and market expansions in future. If businessmen perceive that there is little risk in the markets, they are likely to invest more and establish new ventures.
While this survey has brought good news in terms of reduced market risk perceptions, there are still some indicators like availability of capable workforce where the risk perception has gone up instead of coming down.
It is really alarming to see that decision makers in SME’s are worried about their dependence upon talented workforce. They are more concerned about the availability of skilled workforce with worries about talent retention also going up from 18% to 26% in a single year. This fear has been rising in every single quarter in the last year.