Scots entrepreneurs upbeat on 2011
13 Dec 10
Deloitte finds improved growth expectations, in the face of continuing hardship
Over 90 per cent of Scotland’s entrepreneurial businesses expect to grow their revenues in the next 12 months, according to the results of the annual Entrepreneurship UK report by Deloitte.
The survey shows 58 per cent of Scottish entrepreneurs expect to generate at least 10 per cent revenue growth over the coming year. 35 per cent forecast growth over the next 12 months to be a maximum of 10 per cent, while just 3per cent of Scots project zero or negative growth, down from 21 per cent in 2009. These figures are very much in line with entrepreneurs from across the UK.
In the longer term, almost all Scottish entrepreneurs surveyed forecast at least double-digit revenue growth for their business over the next three years, with one in four projecting growth to exceed 100 per cent.
Liquidity remains a high priority for Scottish entrepreneurs, with 40 per cent of respondents reveal they are actively stockpiling and retaining cash within their business. Over a quarter have less cash than at the same time last year, but say they have enough to get by, while a further 23 per cent are monitoring their cash position daily and making decisions as needed.
Jim Boyle, head of entrepreneurial business at Deloitte in Scotland, said: “Last year survival and cost containment dictated the agenda for many entrepreneurs. This meant the expansion of their business – the driver of revenue growth – took a temporary back seat. However, the vast majority of entrepreneurs expect positive growth over the next year suggesting that some of this cash will soon be invested in growth strategies. Most of the entrepreneurial businesses we are talking to right now have a cautious but optimistic outlook for 2011.
“Owners of larger companies are predicting higher growth than smaller ones, indicating an ongoing lack of access to finance for earlier stage businesses.”