Businesses see recession coming
Article Date: Mar 07 2008Most UK business managers (69 per cent) now believe the country is heading into recession or a serious downturn, according to research by ‘virtual business school’ Pentacle. Only three per cent think a recession in the UK is highly unlikely.
Most of the 200 business people surveyed doubt the capability of companies to handle such a slowdown. Nearly two-thirds of respondents (64 per cent) agree that the economy has been booming for so long that many senior bosses have little or no experience of dealing with a downturn.
Board-level respondents are more pessimistic than middle managers, with 71 per cent believing businesses lack the experience to deal with a less benign economic climate.
Professor Eddie Obeng, director of Pentacle, comments: ‘Most of those at the top of business today are used to vigorous expansion, ambitious projects and taking major risks, all with unwavering confidence. A strong economy has often protected them from the impact of bad decisions.
‘The question is whether these same bold leaders have the expertise to adapt to much more challenging conditions.’
The study also finds that almost three-quarters (74 per cent) of junior staff agree that insecurity, distraction and fear of redundancy could damage struggling businesses further, as workers vie to impress those at the top. But only half of their senior colleagues think such a scenario possible.
Obeng adds: ‘The very nature of a downturn – from staff insecurity to effective financial control – means that priorities must change.’
Are we in the grip of a recession, or is it all media doom-mongering? Have your say here.
