A majority of UK workers and employers are welcoming 2023 with optimism as concerns about major global and financial issues appear to be abating somewhat, according to new research.
A report by accounting software giant NetSuite found that nearly three-quarters (71%) of business founders are more optimistic about their prospects in 2023 than they were a year ago.
Nearly half (47%) expect their business to grow in 2023 as tough economic conditions begin to ease – although many realize the situation will not change overnight.
2023 optimism
A survey of over 2,100 company founders and employees in the UK found that the main challenges facing founders are rising costs/inflation (62%), rising energy costs (50%) and the knock-on effect of the recession (48%). While some of these numbers may seem high, NetSuite notes that inflation fears have actually fallen by 26% compared to 2022, and recession fears have fallen by 35%.
“When conditions seem chaotic, what you need and what customers want is visibility and control,” said Nicky Tozer, senior vice president, Oracle NetSuite, EMEA, at a recent SuiteConnect event in London.
In terms of technology, the study found that the cloud appears to be a key ally for many businesses, with 72% of founders saying they use cloud technology to address economic challenges – and almost all (94%) see the benefits. Being able to run your business remotely, being able to keep accurate financial reports, and automating processes like payroll and invoicing have been cited as some of the biggest advantages of using cloud technology.
Elsewhere, a survey found that 70% of bosses said they would encourage others to start a business right now. NetSuite found that nearly three-quarters (74%) of full-time UK workers plan to start their own business, and nearly two-thirds (64%) plan to do so in the next two years, with the possibility of owning your own boss’ company and gaining more control over your life, which is a particularly strong draw.
“It’s encouraging to see so many founders and employees looking positively at the coming year,” added Tozer.
“Our research suggests that founders are adapting to the constant risks posed by inflation and recession by doubling productivity, using cloud technology and meeting price pressures. The entrepreneurial spirit in the UK shines brightly, with a quarter of workers now bringing extra income to their day-to-day work.”