Uncertainty in the UK is making businesses change their risk and operational planning strategy, according to new research.
UK business leaders feel less in control, more risk averse, and unable to plan for the long-term due to uncertain market conditions, finds new research by accountants and business advisors TC Group.
Out of the 1,500+ UK businesses included in the research, only one in eight feel in total control of their operations, and cite the turbulent market conditions as the reason why.
The findings reveal a mixed bag on risk appetite, with only 20% willing to take more risks.
Although leaders say they’re more willing to take risks in areas to support future growth including technology adoption and new product and service launches, when it comes to hiring senior talent, they have less risk appetite.
A lack of control over events is also affecting their planning decisions, with a majority of businesses [over 60%] not confident planning beyond the next quarter.
Though a majority [72%] are confident steering their business through future uncertainties and disruption, showing that UK businesses are becoming more resilient to adverse changes, they are planning ahead in the shorter term to cope.
A more resilient UK business community is good news, but the research also reveals the mental toll the climate is taking on leaders.
Nearly the entire group of businesses [92%] say they can’t switch off from their businesses without feeling anxiety or guilt. A further third are regularly feeling guilty about their decisions.
Stephen Watts, CEO at TC Group has said he acknowledges that UK businesses carry more burdens today, but believes the research reveals a drive to move forward regardless: “What stands out most in this research is not hesitation, it is leadership in motion. Business owners are still moving, still adapting and still finding ways to progress, even when the path ahead is not fully clear.”
Stephen Jenkins, founder and MD of communications and marketing agency Too Many Dreams, said the idea of control in business is a myth: “As a business owner, the idea you’re ever fully in control is a fiction that provides little real comfort. Whilst there are many areas where you hold the reins, you’re also part of a wider ecosystem; subject to team dynamics, market economics, government decisions, and even just the prevailing mood of the country. If you fool yourself that you’re in complete control, you risk missing the serendipity that life throws your way. They say it takes a village to raise a child. I think the same is true for a business. I’m grateful for the village I’ve managed to build around me.”
The research follows a challenging period for UK firms, with higher operating costs for small-to-medium businesses and further political uncertainty with the imminent departure of Prime Minister, Keir Starmer.
