Entrepreneurs' Forum says confidence in businesses and the economy is high

More than 65% of business leaders in the latest Entrepreneurs’ Forum Business Tracker Survey said that they had witnessed an increase in sales

Confidence in businesses and the economy is at its highest since quarterly research by the Entrepreneurs’ Forum began almost two years ago.

More than 65% of business leaders in the latest Entrepreneurs’ Forum Business Tracker Survey, covering the fourth quarter of 2013, said that they had witnessed an increase in sales, compared with the same period in 2012.

Business fortunes and employment also were on the increase with 64% of respondents saying they had seen a rise in profits and 49% experiencing an expanding workforce in comparison to the same period in 2012.

This business buoyancy looks set to continue into 2014 with 75% confident that sales will increase in January to March compared to the first quarter of last year.

Just under 70% expect profits to increase during that period.

The research, undertaken by Acritas, has also revealed that confidence in both respondents’ own businesses and the economy as a whole was at its highest level since the survey began at the beginning of 2012.

Key findings included:

• 74% reported feeling more confident in their own business and 70% said they had more confidence in the economy than at the same point three months ago.

• In Q3, these figures were 69% and 67% respectively.

• There has been a dramatic rise in confidence since the first survey took place in early 2012 when it was only 16%.

• 75% of entrepreneurs forecast a rise in sales in the first three months of 2014, compared with predictions for Q4 of 2013 of 72%.

• Challenges facing businesses included finding quality, skilled staff to fill vacancies (18%), red tape (10%), cashflow and competition (12%) and generating new sales leads (13%).

Nigel Mills, chairman of the Entrepreneurs’ Forum said: “Entrepreneurial business owners are the lifeblood of the North-east economy’s future prosperity.

“It is heartening to see that our Business Tracker Survey has revealed that confidence is at its highest level since the research began

“This optimism is reinforced by a majority of businesses surveyed reporting a growth in sales, profits and jobs.

“This demonstrates how entrepreneurial businesses are adept at seizing business opportunities and how they are making a substantial contribution to the economic fabric of the region.

“However, it cannot be ignored that there are some obstacles to business development with a key one being companies’ ability to find quality staff that meet a company’s needs.

“Going forward businesses, training organisations and the education sector need to work together to try to tackle this skills shortage.”