Changing pandemic guidance is biggest concern for businesses, says ECI’s Growth Index
Changing pandemic guidance from the government is the biggest short-term concern for businesses, according to new Growth Index research released today by growth-focused mid-market private equity firm ECI Partners.
40% of businesses cited the shifting guidelines and restrictions as their biggest short-term commercial challenge, ahead of fears around a potential global economic downturn (35%), and a lack of client/customer spending (30%). In the North of England, skills shortages are also a significant concern, cited by 36% of businesses in the North (vs just 24% in the South).
Tom Wrenn, partner at ECI Partners said: “UK companies have been incredibly innovative and flexible when it comes to adapting to the changing government guidance – but doing so has clearly taken its toll, especially in the worst-affected sectors. Adapting to changing pandemic guidance is the number one challenge for the businesses we spoke to in the short-term. Anything the government can do to give more notice of upcoming changes and more certainty to businesses in the first quarter of 2021 will help business leaders to plan more effectively.”
Looking beyond the next 12 months, UK companies’ concerns are more focused on the lasting economic impact of Covid-19. The global economic downturn (39%), political uncertainty (29%) and skills shortages (27%) cited as the top three concerns longer term for business leaders.
Tom Wrenn continues: “ECI’s Growth Index benchmarks sentiment, performance and resilience among mid-sized UK companies with strong growth prospects, across a range of sectors. The fact that so many of these important mid-market firms, who are the growth engine of the economy, are citing changing guidance as their biggest worry should be a real concern.”
“Despite this, the good news is that 65% of these mid-market businesses are still predicting growth. If greater certainty is delivered around their short-term concerns, these businesses will be well-placed to help the country navigate the path to economic recovery.”
