A survey commissioned by Speaker’s Corner, sheds light on the proactive steps taken by business owners across the nation to prepare for an impending recession. The study reveals than an overwhelming 99% of businesses are making changes to safeguard their enterprises against economic downturns. However, it also highlights that 22% of the group do not feel their business is currently prepared, underscoring the ongoing concerns within the business community.
The research, which surveyed the view of 500 business owners in the UK on workforce trends, demonstrates the determination and resilience displayed by entrepreneurs and business owners in the face of economic uncertainty. Almost every respondent acknowledged the importance of recession planning and team management to mitigate potential impacts.
With the government’s independent forecaster warning that household incomes will drop by 6% in 2023 and 2024, the UK could be facing the largest two-year fall in living standards since the 1950s. This immense financial pressure is felt by businesses across the country who have already been taking the following steps to prepare their firms for recession:
- Reduced spending on marketing and advertising (27%).
- Looking to change business structures to find ways to benefit (25%).
- Have found or are considering a cheaper office location (24%).
Despite these efforts, a significant proportion of business owners express lingering concerns about their preparedness for a recession, with 22% of respondents feeling their business is not adequately prepared for recession.
Nick Gold, Managing Director of Speaker’s Corner reflects on the findings:
“Whether in reality or due to media portrayal, recession breeds uncertainty. People start worrying about their job security and financial stability. This leads to indecisiveness, negative mindsets, and a lull in creativity. Instead of hunkering down, take a leap of faith in the people around you. Get them involved and inspire them to innovate. Staff are the most valuable asset you have. So, keeping them onside should be one of your key concerns during difficult economic periods.”
From research conducted during the 2008 global downturn, the S&P 500 saw a 35.5% decline in stock performance on average. But some S&P 500 companies didn’t see a decline — in fact, companies with positive employee experiences saw a 14.4% gain. If businesses are able to stay optimistic throughout recession, they can help themselves to weather difficult economic conditions while also protecting staff wellbeing and company culture.