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By Andy Page

Partner

Moore Stephens

NOW in its fifth year, Moore Stephens’ annual Owner Managed Business (OMB) survey report provides a clear view of the confidence, plans and concerns of business leaders across the East Midlands and the UK.

Business confidence in 2018 and Brexit

Our research finds that confidence in the general outlook among OMBs has stabilised after dropping to a three-year low in our 2017 report; 60 per cent of respondents express confidence in the general outlook for 2018 (compared to 59 per cent in 2017, 77 per cent in 2016 and 70 per cent in 2015).

OMBs are concerned about the strength of the UK economy (a worry for 78 per cent), with a major factor being the UK’s impending departure from the European Union. Just over half are concerned about the impact that Brexit negotiations will have on their business, with key concerns including the potential introduction of tariffs and a shortage of EU labour. On the other hand, a third of OMBs have no concerns about leaving the EU.

Business leaders continue to be pragmatic in spite of political and Brexit-related uncertainty, and with many indicators pointing to a period of reliable growth (albeit perhaps not ‘exciting’ growth) – owner managers have reason to be more optimistic than last year.

Bridging the skills gap and the rise of technology

With a shortage of skilled staff being a primary concern for OMBs (41 per cent), it’s encouraging to see that businesses are taking action. Our report finds that 48 per cent of OMBs view digital skills as the area requiring investment, alongside sales and marketing (45 per cent) and leadership and management training (43 per cent). Businesses recognise that they need to provide opportunities to staff to develop, or run the risk of staff leaving to a competitor who offers better development opportunities.

Linked to digital skills, 79 per cent of business leaders view the rise of technology (including automation, machine learning and robotics) as an opportunity as opposed to a threat. A respondent to our survey adds: ‘We are at a tipping point for these technologies – they have been around for a few years, but are now becoming mainstream. All companies need to be prepared for a change in the way that we run and do business within the next ten years.’

An area with which we’re supporting many clients in the East Midlands is business process efficiency – making better use of data and streamlining systems and operations. The more you can plan ahead, the more you can make technology work to your advantage.

Seeking the right advice at the right time

Recognising the need to keep pace with technological advances, business leaders plan to invest in digital skills and innovation during 2018 – so it’s important to explore the ways in which technology can be used within your business, and to take full advantage of tax reliefs and grants that may be available to you.

As the terms of the UK’s departure from the EU become clear, OMBs must take advice on the ways in which Brexit may impact their business and plan for what the future may have in store – and it’s in this area that our East Midlands team is ready to help you thrive in a changing world.

To download our latest owner managed business report, visit our website: bit.ly/OMB-report2018

Moore Stephens is a top 10 accounting and advisory network, supporting individuals and owner managers, large corporates and complex international businesses thrive in a changing world.

For more details, contact Andy Page on 01604 654254.

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