UK businesses ill-prepared for recovery
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Small and medium-sized businesses are proving slow to react to an upturn in the economy, leaving their business unprepared for a return to growth.
Research from Lloyds TSB Commercial found that out of 500 senior managers at small and medium-sized enterprises over a third have not taken any steps to prepare for an upturn.
But just under half of those who were ill-prepared to cope with additional business believed that taking steps to gear up for recovery would be essential if they were to survive in the long-term.
Out of those businesses that have started to prepare for recovery, 42% say they have done so because they don’t want to lose out when the recovery arrives.
A further 14% say they learned their lessons in the last recession.
Steps taken by firms getting ready for an upturn include sharpening up processes and working practices, efficiency improvements, seeking additional funding, and boosting research and development efforts.
John Maltby, managing director of Lloyds TSB Commercial, says: “Recession has weighed heavily on UK businesses and it is easy to see why talk of a recovery might bring welcome relief.
“But in the same way that we have encouraged firms to take action to survive the downturn, they will also need to prepare for the return to growth.
“The shape and scale of any recovery is still uncertain, but one thing is clear - those businesses already looking towards the upturn and planning how to make the most of it, are the ones which will thrive. “
Lloyds TSB Commercial has launched a nationwide series of roadshows over the next two months and a guide called ‘Preparing for the Upturn’ to help businesses adapt in line with the prospect of recovery.
