Next Year’s Expectation of Most UK Firms, Robust Revenue Growth
At this point of time, nine out of ten UK entrepreneurial businesses are already preparing to raise and generate cash in 2011, being their top priority as they expect the coming 12 months to increase their revenue growth, Deloitte’s 2010 Entrepreneurship UK report revealed.
Of the approximately 350 UK entrepreneurs surveyed, 56 percent confessed they expected a 10 percent minimum increase in revenue while 36 percent aim it at a maximum. However, the report projected 8 percent of the respondents to have been expecting a zero to negative revenue growth.
In a three-year time frame, 90 percent of respondents are projected to be aiming a two-digit revenue increase, with 40 percent expect it to exceed 50 percent, Deloitte reported.
Deloitte’s entrepreneurial business head Tony Cohen said the efforts of business entrepreneurs to reduce cost in 2009 as an easy way out of declining balance sheet have greatly contributed to their expectation of boosting revenue growth next year, adding that the saved amount would be used to invest in business.
“Owners of larger companies are predicting higher growth than smaller ones, indicating an ongoing lack of access to finance for earlier stage businesses,” Cohen said.
Business growth will depend largely on revenue, said 43 percent of the respondents, while 33 percent opted profitability. According to one-fourth of respondents, increased investment and organic growth would fuel business growth next year, 22 percent depended on new product development, and 16 percent said new market ventures would bolster revenue growth.
Market preferences are varied among respondents as 84 percent see UK, Western Europe, and North America as top in the list, while only 1.5 percent would prefer China, 4.5 percent to Asia-Pacific region and the least preferred market for revenue growth being India and Brazil, with 1 percent.