Baker Tilly

Writing research reports and newsletter copy on a wide range of subjects.

Outlook 2010 Still crystal ball gazing?

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The outlook for business and for restructuring and recovery in the 2010.

In brief:
Recession formally ends • General election to determine the course of government tax measures • Rates of inflation, interest andgrowth all low in 2010 • More insolvencies, more
unemployment likely

Baker Tilly Owner-Managed Business (OMB) Report 2010

Filed in: banks, sme, tax, small business, bank lending, growth, confidence, credit crunch, political risk, owner managed business

Baker Tilly spoke to 200 directors of owner-managed businesses (OMBs) in early 2010 to gather their opinions of what the current economic climate means for the nation’s OMB community. We asked our respondents about a range of issues, including the outlook for sales, margins and profits, their employment plans, perceived threats, risks and opportunities for growth.

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Report overview
A majority of owner-managed businesses expect to increase sales in the next 12 months. They are confident, for the most part, that they can maintain their gross margin and increase operating profit.

This demonstrates a distinctly more optimistic outlook than our last report 12 months ago when the economy was in the depth of the recession. This seems to suggest a consensus view that the worst is over now.

However, business owners and directors have some very real concerns, particularly surrounding the risks of a downturn in demand, a lack of credit to support their business plans and that increased tax, tax complexity and regulation may damage their businesses.

Therefore while they are generally positive and upbeat about their business prospects for the next year, they remain apprehensive about how the economic climate may yet impact them. They are also concerned that government may pose new challenges for them in the act of cleaning up the debris, after the worst financial crisis to strike the business environment in the last three quarters of a century.