Barclays Connecting Business survey found that 58% of the businesses surveyed believe competition in their industry is set to increase post-recession, including 27% who expect their sector to be 'much more competitive'. This compares to just 4% who believe the post-recession economy will be 'much less competitive' for their business.
40% of UK businesses said that increasing sales is a key priority for them in 2010, while 35% said they focus on taking market share. Managing cashflow is identified as a key focus for 16% of businesses.
There are also a significant proportion of businesses preparing for
an environment where demand for their products does not reach
pre-recession levels
There are also a significant proportion of UK businesses preparing for an environment where demand for their products does not reach pre-recession levels. Nearly half of business leaders believe consumer demand will not exceed pre-credit crunch levels for the foreseeable future, while 37% feel the same about business-to-business demand.
However, a positive finding was the number of businesses that actually reported an increase in innovation. More than two thirds of UK businesses claim that during the recession innovation had either continued as normal (37%) or that the pace of innovation had actually increased (31%).
"Innovation today means exploiting healthy economic growth rates abroad while developing an offering able to thrive despite depressed demand at home. With confidence returning and growth back on the agenda, 2010 should see UK businesses competing aggressively for market share once more," said Ian Stuart, managing director at Barclays Corporate.
