Member Article

Entrepreneurs' survey highlights North East economic positivity

As the Office for National Statistics prepares to give its latest revision of Gross Domestic Products (GDP) on Friday, a survey of North East entrepreneurs has painted a positive picture of the economy.

The latest Entrepreneurs’ Forum Business Tracker Survey, covering the first quarter of 2014, showed strength in many key indicators of the health of entrepreneurs’ own businesses, as well as the wider economy.

In terms of year on year performance, for January to March 2014 in comparison with the same period in 2013, entrepreneurs reported increases in sales, profits employee numbers and remuneration. The survey is conducted and compiled by leading research specialist Acritas.

• Overall sales: 73% reported an increase, while 19% said levels had remained the same • Export sales: 49% saw an increase, while 32% said a retention of Q1 2013 levels • Actual profit: An increase was reported by 58%, while 26% said levels were maintained • Employee numbers: 57% reported an increase in employment, with 34% saying levels had not changed • Remuneration: 52% reported an increase, 48% said levels were the same • Prices: 31% reported an increase, while 64% said levels had remained the same • Capital expenditure: An increase was reported by 42%, and 48% said levels had remained as they were

When asked about their optimism for the future of their own business, 71% said they were more confident than three months previously, with 26% feeling the same. In terms of confidence in the wider economy, 64% were more confident and 34% feeling the same.

Nigel Mills, Chairman of the Entrepreneurs’ Forum, said: “The proportion of entrepreneurs reporting on balance an increase in overall sales, employee numbers, remuneration, prices and stock are at their highest levels since the survey began. On top of that, optimism for the second quarter is very high among entrepreneurs, with many of these indicators expected to increase.

“These are the people who run the businesses which drive the economy, and it is very heartening that both actual experiences and expectations suggest we are seeing a strong first half of 2014.”

Forecasted performance for the second quarter of 2014, compared with the same three months in 2013, showed on balance that expectations of increases in overall sales (80% of entrepreneurs), export sales (54%), actual profit (69%), employee numbers (58%), prices (33%), capital expenditure (40%), and levels of stock (17%).

Mr Mills added: “There are still challenges, however, with the ability to fill vacancies reported to have fallen slightly on the previous quarter’s survey, and finding quality staff continues to be seen as the main barrier to growth, being highlighted by 25% of entrepreneurs. Finding sales and new contracts, red tape and access to funding also came up as issues which continue to be faced by members surveyed.

“However, the overall picture painted by North East entrepreneurs is a good one, and we have good reason to push forward with optimism.”

One of the businesses seeing the benefit of a positive start to the year is Sunderland-based architecture firm Planit Design.

Architectural director Clare Stagg, who runs the company with her business partner, said: “In the last year, we have grown our team and launched a new bespoke service, Planit Choice. This is aimed at clients who require a more detailed level of professional involvement in their project. We have also seen a growth in business since the start of 2014, with home owners finding finance easier to come by and as people are feeling more secure in their jobs they are deciding to get on with schemes that they had previously put on hold. I think that now we are seeing signs of improvement in these areas, people feel they have waited long enough and are keen to get on with their projects.”

www.entrepreneursforum.net

This was posted in Bdaily's Members' News section by Recognition PR Business Team .