Silver lining in downturn

02.12.08

Over a quarter of UK entrepreneurs believe the economic downturn has the potential for new business opportunities, new research suggests.

These new opportunities include taking clients from competitors, buying stock at lower prices or acquiring other companies, a poll by entrepreneur think tank the Tenon Forum found.

London entrepreneurs are the most confident about new prospects as a result of the downturn – 39% think recession has a silver lining. However, only 22% of entrepreneurs in the West Midlands think there’s scope for opportunity.

Carl Jackson, head of recovery at Tenon, said: “It is encouraging to see that those entrepreneurs that are willing to take calculated risks are still able to reap the rewards and will be in a position to strengthen their business further as times continue to get tough.”

On a less positive note however, the research revealed that 71% of entrepreneurs think the downturn has had a negative effect on their company.

Over half have seen a drop in demand for goods and services over the past year, and more than a quarter have been forced to cut staff.

Tenon member Gary Williams, of Williams Shipping, said he had experienced three previous recessions but there was something different about the current climate.

“The speed of the slowdown this time is much more rapid and is affecting markets more widely across the globe,” he said.

“The difficult question now is: how long will this downturn continue as governments grapple with measures to restore confidence and stability, and what will the long term impact of these actions be on world economies as we move forward?”

© Crimson Business Ltd. 2008