Global economics has proved time and time again, that when America sneezes the rest of the world catches a cold. Surely the same rule applies to when positive growth occurs in the USA? Well, not if you compare America’s recent growth figures to the UK’s. But is the fact the government has announced that we are out of recession lulled the SME and company formation sector into a false sense of security?
Accountancy firm JWT believes it has. The firm heads an annual meeting of over twenty of the UK’s most prominent economists and the overwhelming consensus was that the SME sector was ‘in denial’ about the state of the economy.
Alistair Wilson, managing partner at JWT, comments: ‘While the recession is over on paper the fact remains that it is very unlikely that the economy will return to its pre-recessionary state for at least another four year – maybe even longer.”
“Companies need to realize that this recession has changed the landscape of enterprise in Britain. Consumer behaviour will never be the same and one of the many consequences of the recession is the fact that a huge number of companies have gone into administration. If you want you business to grow, it is vital you learn to evolve and become more dynamic.”