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Economic uncertainty tops the list of concerns facing British business owners and managers according to a recent survey by financial advisers Grant Thornton.

Commissioned as part of Grant Thornton's national Owner's Day campaign, the survey showed that only one in ten are forecasting economic growth over the next year.

A third believe the UK economy will decline over the 12 months. However, the vast majority (86%) of owner-managers are cautiously optimistic that their own businesses will remain stable or grow.

Building the value of the business is the top priority of the 2,400 business owners and managers surveyed.

Graeme Forbes, head of Entrepreneurial Services at Grant Thornton, commented that this level of concern has probably risen higher following the events of 11 September (the survey questionnaires were collated in July and August).

As a result of a higher level of economic uncertainty, Forbes continued, business leaders will have to make increasingly tough decisions about managing their businesses during a downturn. The situation could create opportunities for some business, but Forbes adds, "Either way, effective management skills are going to be highly prized."

Owners Day expert, Giles Clarke, entrepreneur and creator of Pet City, was adamant that strong financial control of the business is vital. He commented that it's tough for everyone in a recession and if an owner-manager can maintain good cash reserves, low gearing and a clear market position, competitors are likely to disappear by the wayside. He comments that it could be "a fantastic opportunity to build a strong market position."

Alarmingly, according to Grant Thornton, one third of UK businesses which responded did not have a formal business plan. Says Forbes, "In the face of a downturn, businesses must be aware that now is the time for strategic planning and an up to date business plan."

The findings of the survey will be presented at 'Owners Day 2001', which is being held on 8 November. To obtain further details on the event, contact your local Grant Thornton office or visit their website at www.grantthornton.co.uk .

With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com .

(24/10/01)

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