| After a year which has been tricky for some and | | | | first time in two years.” |
| catastrophic for others we could be forgiven for | | | | However not all quarters of the UK industry are |
| looking towards 2010 with some trepidation and in | | | | predicting quite such a swift return to the good times |
| some of the more morose corners of industry dare | | | | as the British Chambers of Commerce (BCC) has |
| we say it, a heavy dose of doom and gloom? Well | | | | issued a slightly more ominous statement that |
| those hardy soles in the ever exciting SME market | | | | although the recovery may have started, the |
| are having none of it – despite the sector being | | | | economy still faces considerable risk. |
| hit harder by the recession than most. | | | | According to the organisation, GDP will drop by 4.3 |
| At least that is what the results of a recent report | | | | per cent this year, followed by growth of 1.1 per |
| from British communication giant BT would seem to | | | | cent in 2010 – an improvement on the BCC’s |
| suggest. | | | | June prediction of 0.6 per cent. |
| The 2009 BT Pulse report has revealed that an | | | | David Kern, chief economist at the BCC, says: |
| overwhelming three quarters of SME’s predict | | | | ‘While we expect a gradual improvement over |
| the economy will see an upturn in 2010. Further to | | | | the next two years, the pace of UK expansion is |
| this over 60% of the respondents were confident | | | | likely to be weak by pre-recession standards. It is |
| about their businesses prospects for the coming year | | | | critical that wealth-creating businesses have adequate |
| and an impressively confident 35% even predicted | | | | capacity to respond to an upturn in demand when |
| their situation will have improved as soon as January | | | | the recovery strengthens.’ |
| 2010. | | | | However despite the general confidence, many |
| The report surveyed 7,200 Directors of small and | | | | SME’s are still walking a dangerous tightrope |
| medium sized enterprises and a strategy director at | | | | leaving themselves unnecessarily open to adverse |
| BT commented that the findings “show that the | | | | risk as they cut their policies and leave themselves |
| economy is at a tipping point. Despite the obvious | | | | underinsured. |
| knock to confidence, positivity about when the | | | | Of course should these buoyant entrepreneurial |
| upturn will come is encouraging.” | | | | companies live up to the high expectations they are |
| With 45% of the respondents going as far as saying | | | | piling upon themselves then it follows that their |
| that they have streamlined their business so that | | | | insurance needs will grow too and with the aid of a |
| they are now operating even better as a result of | | | | good broker they may just be able to manage the |
| the downturn, it seems that many of these SME | | | | balancing act of ensuring that their cover is adequate |
| operators are primed to thrive as soon as the | | | | and competitively priced. |
| market catches them up. | | | | With the SME sector looking once again to rise like a |
| These bold predictions have also been echoed by the | | | | phoenix from the ashes the role of the high street |
| Institute for Chartered Accountants in England and | | | | commercial insurance broker could once again |
| Wales (ICAEW), who have also recently released a | | | | become a crucial link between the sector and the |
| similar statement that “confidence among | | | | general insurance industry. |
| business professionals has turned positive for the | | | | |