According to the research, compiled by American Express, Britain’s economy (58 per cent), the economies of other countries (54 per cent) and the availability of capital (52 per cent), were the three principal factors expected by CFOs to have a positive effect on company growth.
Despite the upcoming general election, 39 per cent of leaders in the UK also suggested domestic political changes, such as a difference in leadership, would have a positive effect on company growth. In comparison, only 14 per cent were convinced there would be a negative effect. However, business leaders still seem resolute in spending their way back to fiscal health. Some 74 per cent plan to spend and invest “aggressively” over the next year. Last year only ten per cent had such plans in place, while 30 per cent favoured tight financial control. The majority of CFOs see investment as essential to reaching their business goals, the most important of which were cited as remaining competitive with other countries, entering new markets and pursuing business innovation. Some 74 per cent of claimed they would have difficulty meeting customer needs if their companies don’t increase spending and investment. Companies revealed a trend of targeting growth-oriented activities for additional investment. Cited as the most important areas, and tied at joint place, was the development of new products and services, and sales and marketing (41 per cent). This was followed by M&A activity (39 per cent) and the improvement of business intelligence and analytics (38 per cent). Read more about business growth:- Confidence in UK growth falls amid volatile political climate
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