CEO confidence skyrockets in Ireland and UK for 2024
Vistage, the world’s most trusted CEO coaching & peer advisory organisation, has released results from its quarterly SME CEO Confidence Index for Q1 2024. Overall business confidence in the UK and Ireland increased to 107.7 up 2.1 points since Q4.
Profitability expected to grow
This quarter’s report found that more than a quarter (27%) of business owners remain optimistic and expect that economic conditions across the UK and Ireland will continue to improve. As such two-thirds (66%) of business leaders expect revenue to increase over the coming year. Further to this, exactly half (50%) of all business leaders felt confident that their firm’s profitability will also improve.
The expected growth in profitability can be attributed to the following four key elements:
- Introduction of cost saving measures (45%)
- Price increases (48%)
- Cost efficiencies (38%)
- The reduction of input costs (10%)
For SMEs forecasting a decreased profitability this was largely attributed to: absorbing costs (68%), generating less revenue (42%) and high interest rates (13%).
Keeping pace with consumer demand
With that in mind SMEs across the UK and Ireland are experiencing high demands for their goods and/or services despite the current recession. In fact, just under a third (32%) of company heads have recorded an increase in consumer demand.
As a result, 32% of all SME leaders plan to increase expansion plans in order to keep apace. For the new financial year businesses are proactively looking to double down on senior talent to help strategise and implement growth plans. As part of these plans business owners intend to focus on the following areas:
- Investing in development (58%)
- Enhancing succession planning (45%)
- Leadership restructure (43%)
- Promoting existing team members (35%)
- Recruiting leadership positions (25%)
Vistage, MD international operations (UK), Andy Perkins, said: “Despite news earlier this year that both the UK and Ireland have entered technical recessions, business confidence across markets has increased. While still a volatile economic environment business leaders are choosing to remain optimistic, looking forwards as they implement expansion plans than spur growth, keep up with consumer demand and maintain profitability.
As business leaders focus on strategy for the coming quarter it’s more important than ever to remember to keep mission, vision and purpose front and centre, as plans materialise and are brought to life.”