Business News Round Up (09/08/2021)
SME optimism high, though north-south split emerges
Contrary to reports at the turn of the year of widespread failures among SMEs, almost nine in ten (87%) expect to be trading in a year’s time, according to new data. Of those surveyed by SME accountancy firm Azets, 68% feel positive about the UK’s economic outlook with more than 56% expecting profits to increase. More than half (56%) of SMEs expect to recruit more staff during the next year and 60% intend to invest in the business, while 73% of those SMEs with staff on furlough intend to return all on to the payroll. However, in a sign of a north-south divide, fewer businesses in Scotland (60%) and in the North of England (59%) feel positive about the UK’s economic outlook compared to 71% in London and the South. As the UK went into lockdown last year, the government stepped in to support businesses with 71% of SMEs feeling well supported by the policy programme.
North West business activity continues to rise – but pace of region’s recovery slows
Business activity in the North West continued to rise further in July – but the pace of recovery slowed, new data has revealed. NatWest’s latest North West PMI has shown sustained recoveries in both output and employment across the region last month, with the rate of growth easing as firms come under pressure from sharply rising costs. Released on Monday, the index monitors the monthly change in the output of goods and services across the private sector, with any reading above 50 showing the economy is growing. At 59.9, the headline North West Business Activity Index remained “firmly inside growth territory” – however was a drop on June’s 65.0 figure and also below May’s all-time high of 66.4,
https://www.business-live.co.uk/partners/north-west-business-activity-continues-21241276
Half of young feel career prospects harmed by Covid
Young people have been given assurances on the validity of their qualifications as research reveals nearly half feel the pandemic has harmed their long-term career prospects. Ahead of results day this week, Scottish business leaders have signed an open letter to school leavers backing a scheme offering a job or training for all 16 to 24 year olds. Abrdn, Aviva, BAE Systems and ScottishPower are among more than 100 firms now supporting the Young Person’s Guarantee. The open letter reassures young Scots that their qualifications are just as respected by employers as in previous years and congratulates them for overcoming a unique set of hurdles. It comes as new research from the Chartered Institute of Personnel and Development (CIPD) found that nearly half of all 18–30-year-olds in Scotland (48%) feel the pandemic has harmed their long-term career prospects. Almost two-thirds (64%) say the pandemic has made their mental health worse.
More businesses taking the digital road across the Highlands and Islands
Businesses across the Highlands and Islands are using digital technology in ever greater numbers, according to a new study published by the region’s development agency. Researchers from Ipsos MORI found that 78% of Highlands and Islands companies are now using mobile technology as a key element of their operations, up from 70% since a similar survey was carried out four years ago. Another key finding revealed that cloud computing is now being used by 67% of the region’s businesses – a remarkable surge of 38 points from the 2017 level of just 29%. The proportion using social media has risen by 5 points, from 63% in 2017 to 68% today, while 65% of companies now have a website – a rise of 4 points. More than three-quarters (77%) agreed that digital technology had played an important or essential role in their response to challenges presented by the Covid-19 pandemic. Regional figures were collated as part of the Scotland-wide Digital Economy Business Survey (DEBS), a partnership involving Highlands and Islands Enterprise (HIE), the Scottish Government, Scottish Enterprise, Skills Development Scotland and, for the first time this year, South of Scotland Enterprise.