Business optimism for Hampshire Economy in 2010 according to Business Link

In 2009, thousands of businesses across Hampshire and the Isle of Wight have had to rationalise staffing levels, cut costs, improve customer service, reduce waste, find new markets and alternative suppliers to survive.  However almost one in three SMEs are preparing for better times by training their staff and over half (53%) expect their turnover to increase in the next twelve months, according to recent Business Link research.

As the economy prepares its path to recovery, SME turnover and recruitment expectations are rising in Hampshire and the Isle of Wight. Whilst we can see the growing signs of an upturn for businesses and the continued challenges, such as rising energy and raw material prices, which affects cash flow pressures, there is business optimism for the Hampshire economy in 2010.

Across the South East, the business and financial sector is the most optimistic with 47% expecting their market to improve and 20% of that sector expecting to take on staff, this equates to 170,000 businesses looking to recruit in 2010.

The research identified common characteristics among those businesses which are expecting their turnover to expand in the next year, these included:
Happy to use business support (61%)
Use planning tools, either a business plan, sales & marketing or training plans (77%)
Have a website (78%)
Maureen Frost, Chief Executive, Portsmouth and South East Hampshire Chamber commented on the findings, ‘Chamber of Commerce members in Portsmouth and South East Hampshire are certainly expressing an optimistic outlook for 2010 with positive signs of recovery in parts of manufacturing, particularly those exporting, and across key service sectors for the region. They welcome and intend to take full advantage of the business support services available.’

Deborah Wyatt from Business Link, commented, ‘The research confirms the upturn in business attitudes in the region which Business Link Advisers are noticing through their meetings with companies and sole traders.

‘Optimistic businesses are open to using business support and use planning tools.  Business Link provides free support and can help you to produce or review plans for your enterprise.  So to make sure that you are doing all you can to prepare for the economic upturn and explore ways to gain the initiative ahead of your competitors, get in touch with us.’

For more information, please contact Business Link on 0845 600 9 006 or visit: www.businesslink.gov.uk/southeast/research

*Hot Topic Flashlight No 28: Preparing for Economic Recovery, published 21 January 2010
The Report covers the findings of the South East Business Monitor, a survey of 209 businesses in Hampshire carried out in November 2009.