Why Some UK Entrepreneurs Target the U.S.
Could the UK 2023 inflation be an opportunity for business revival? Pixabay

Based on the combined effects of a currently tumultuous socio-political context and rising inflation, the future of the UK national economy is foreshadowed to be quite gloomy. Comparatively to the previous health crisis, the outlook of the UK's financial state is left to be desired and would stop a lot of entrepreneurs from taking risks, investing or even developing new businesses at all.

However, it is often in times of crisis where thriving towards innovation and creation is the most rewarding. As the new 2023 study on UK entrepreneurs' growth led by Oracle NetSuite states, the future of founders and employees could be brighter than anticipated.

Could this be a chance for a new sustainable economic dynamic or an illusionary opportunity?

A brighter future?

The following survey led by Oracle NetSuite which questioned 2100 founders and employees, here are the key findings on growth opportunities and how businesses use technology to increase their profitability and resilience.

It was found that 71% of business founders are more optimistic about their prospects in 2023 than they were in 2022 and 47% of them expect their businesses to grow. Concerns around recession and inflation have respectively dropped by 35% and 26% compared to last year.

Moreover, to improve their profitability, 42% of founders plan to increase the price of their products and services by 10% and 21% of them planning a 20% price increase. Only 18% of them declare that they will not increase their prices this year.

In addition to new business strategies enhancing annual income and betting on a long-term sustainable outcome, many UK workers are planning to start their own business in 2023, with 64% of workers, along with a growing culture of "side-hustle".

We have noticed an increase of 27% of UK workers having a separate source of income in addition of their main job. In both cases the goal is to have more control, be your own boss and challenge themselves with a more rewarding income.

According to Nicky Tozer, EMEA SVP at Oracle NetSuite, "Our study suggests that founders are adapting to the persistent risk posed by inflation and recession by doubling down on productivity, the use of cloud technology, and meeting pricing pressures head-on. The UK's entrepreneurial spirit is shining brightly, as evidenced by the quarter of workers currently bringing in additional sources of income to their day job."

A collective optimism tainted by economic challenges?

Nevertheless, inflation and current social arguments still restrain certain aspects of business and the main counter-attack lies in increasing profitability through pricing. The environment remains tough and the main challenges found were cost/inflation related, with the increase in energy pricing and the knock-off effect of the recession.

Furthermore, the fund's accessibility uncertainty has increased as well with 53% of them reporting not having a predictable income and 51% of them encountering little to no funding.

Using technology to avoid the crisis' rain?

UK founders and businesses are almost all using cloud technology, reporting that they they found it very beneficial in such a challenging environment. About 72% of them declare using cloud technology to help their businesses and 94% of them are seeing the benefits and perks of it.

The main advantages reported are being able to run their business remotely for 29% of them, conduct accurate financial reporting for 25% and finally be able to automate processes such as payroll and invoicing for 23%.

On the contrary, the ones who are not using cloud technology are 18% less expectant of business and 21% have a less positive outlook. Workers wanting to start their own business recognise the importance of technology in the 2023 business management, with 89% recognising it will play a key role.