More to come about Natural Enterprise on VB shortly, in the meantime, the latest business survey shows that Island businesses who took part are more optimistic about their own business than the national economy. Ed
The eighth Barometer Business online survey of Island businesses was released last week (8 November 2010) reporting on the quarter from July to September.
The report, produced by Natural Enterprise, shows that Island businesses are more optimistic about their own business than the national economy.
20% optimistic
In this quarter’s survey, 20% of respondents reported being more optimistic about their business, with only 8.5% indicating confidence in the national economy, 50% less than just three months ago.
Optimism in respondents’ own businesses has been steady over the past year, unlike the National Economy which saw a significant drop in April, coinciding with the General Election, before recovering, albeit below the historical high seen in October 2009.
The localised optimism is carried through to employment levels with 33% of respondents reporting an increase in the number of employees, up from July of this year.
The future is bright
Looking ahead, the future is looking brighter with 78% of respondents predicting their employment figures to remain the same or increase with just 3% forecasting a significant decrease in the number of employees. However, 5% of respondents recorded an increase in their profit margins, decreasing in the past year from 22%.
Brian Friend, Chairman of Natural Enterprise said “It’s interesting to see that when looking at employment nationally figures are predicted to remain the same, with the increase in private sector hiring offset by expected cuts in the public sector headcount. Nevertheless it remains to be seen whether private businesses can absorb the personnel at risk in light of the potential public sector cuts on the Isle of Wight”.
Room for growth
When looking at capacity, 17% of respondents reported operating at full capacity, indicating the remaining 83% having room for growth. Added to the fact that 28% of respondents have shown an increase in sales and 36% have reported an increase in orders, it would suggest a slightly more positive outlook for the future.
Additional key findings of the survey include:
- A decrease and significant decrease in investment was identified by 36 % of respondents, with 44% saying investment will remain the same, which is on a par with national reports (source: Bank of England)
- Respondents have acknowledged the need for more information on the impact climate adaptation could have on their business
Natural Enterprise intends to continue to increase the sample size whilst maintaining the representative profile of the Island’s economy. Any businesses wishing to participate or find out more about becoming a Barometer Business should contact Carlene Leonard on 01983 535819.
You can view the full Barometer Business Report for October by visiting the news section online.
