Read time: 4 min read
At a glance
- The UK is in a recession, but not all industries will be affected equally.
- Whether you’re in a shrinking sector or not, there are likely to be growth opportunities for your SME.
- Modern forecasting tools can help your business to manage stock, anticipate demand and adapt to changing circumstances so you can scale up successfully.
The outlook for small and medium-sized enterprises (SMEs) isn’t all gloomy. Britain’s economy is technically in recession and the Confederation of British Industry predicts it won’t start recovering until late 2023.1 But SMEs can grow or expand into new markets even during an economic downturn.
Some firms even relish tougher economic times as they’re challenged to compete harder. They can exploit gaps created by weakened or failing competitors; make their businesses leaner; drive more robust marketing strategies – and often emerge stronger.
Finding growth opportunities
The overall UK economy contracted by 0.2% in Q3 2022, according to the Office for National Statistics (ONS).2 But output increased in ten of the 20 ONS sectors and only decreased in nine. For example, output fell in wholesale and retail trade, and other service activities. But it increased in education, and financial and insurance activities.
Insurance is relatively recession-proof because people need it regardless of economic conditions. Education also tends to be resilient because when people lose – or may lose – their jobs, they look to improve skills or retrain.
Another sector that can do well in downturns is budget brands. In August 2022, Ryanair CEO Michael O’Leary told a press conference that the airline would grow stronger in a recession as people sought to trade down to the lowest-fare operator.
Andrew Shepperd, co-founder of M&A and investment consultancy Entrepreneurs Hub, says: “Businesses face rising inflation and uncertainties that could bring recessionary challenges into 2024. But there will be growth opportunities.
“Inflation isn’t all bad. Many SMEs will raise prices and earn more from the same sales, so grow naturally. But they should also seek new growth areas. In the financial crisis, we helped several businesses find new niches by reviewing their business and markets until we found potential growth areas.
“That involves lots of research and studying how other great companies are winning. Also find out what industry associations are predicting and what their members are saying. Are new markets cropping up? Or could you gain share in adjacent markets?”
Read time: 4 min read
At a glance
- The UK is in a recession, but not all industries will be affected equally.
- Whether you’re in a shrinking sector or not, there are likely to be growth opportunities for your SME.
- Modern forecasting tools can help your business to manage stock, anticipate demand and adapt to changing circumstances so you can scale up successfully.
The outlook for small and medium-sized enterprises (SMEs) isn’t all gloomy. Britain’s economy is technically in recession and the Confederation of British Industry predicts it won’t start recovering until late 2023.1 But SMEs can grow or expand into new markets even during an economic downturn.
Some firms even relish tougher economic times as they’re challenged to compete harder. They can exploit gaps created by weakened or failing competitors; make their businesses leaner; drive more robust marketing strategies – and often emerge stronger.
Finding growth opportunities
The overall UK economy contracted by 0.2% in Q3 2022, according to the Office for National Statistics (ONS).2 But output increased in ten of the 20 ONS sectors and only decreased in nine. For example, output fell in wholesale and retail trade, and other service activities. But it increased in education, and financial and insurance activities.
Insurance is relatively recession-proof because people need it regardless of economic conditions. Education also tends to be resilient because when people lose – or may lose – their jobs, they look to improve skills or retrain.
Another sector that can do well in downturns is budget brands. In August 2022, Ryanair CEO Michael O’Leary told a press conference that the airline would grow stronger in a recession as people sought to trade down to the lowest-fare operator.
Andrew Shepperd, co-founder of M&A and investment consultancy Entrepreneurs Hub, says: “Businesses face rising inflation and uncertainties that could bring recessionary challenges into 2024. But there will be growth opportunities.
“Inflation isn’t all bad. Many SMEs will raise prices and earn more from the same sales, so grow naturally. But they should also seek new growth areas. In the financial crisis, we helped several businesses find new niches by reviewing their business and markets until we found potential growth areas.
“That involves lots of research and studying how other great companies are winning. Also find out what industry associations are predicting and what their members are saying. Are new markets cropping up? Or could you gain share in adjacent markets?”
Read time: 4 min read
At a glance
- The UK is in a recession, but not all industries will be affected equally.
- Whether you’re in a shrinking sector or not, there are likely to be growth opportunities for your SME.
- Modern forecasting tools can help your business to manage stock, anticipate demand and adapt to changing circumstances so you can scale up successfully.
The outlook for small and medium-sized enterprises (SMEs) isn’t all gloomy. Britain’s economy is technically in recession and the Confederation of British Industry predicts it won’t start recovering until late 2023.1 But SMEs can grow or expand into new markets even during an economic downturn.
Some firms even relish tougher economic times as they’re challenged to compete harder. They can exploit gaps created by weakened or failing competitors; make their businesses leaner; drive more robust marketing strategies – and often emerge stronger.
Finding growth opportunities
The overall UK economy contracted by 0.2% in Q3 2022, according to the Office for National Statistics (ONS).2 But output increased in ten of the 20 ONS sectors and only decreased in nine. For example, output fell in wholesale and retail trade, and other service activities. But it increased in education, and financial and insurance activities.
Insurance is relatively recession-proof because people need it regardless of economic conditions. Education also tends to be resilient because when people lose – or may lose – their jobs, they look to improve skills or retrain.
Another sector that can do well in downturns is budget brands. In August 2022, Ryanair CEO Michael O’Leary told a press conference that the airline would grow stronger in a recession as people sought to trade down to the lowest-fare operator.
Andrew Shepperd, co-founder of M&A and investment consultancy Entrepreneurs Hub, says: “Businesses face rising inflation and uncertainties that could bring recessionary challenges into 2024. But there will be growth opportunities.
“Inflation isn’t all bad. Many SMEs will raise prices and earn more from the same sales, so grow naturally. But they should also seek new growth areas. In the financial crisis, we helped several businesses find new niches by reviewing their business and markets until we found potential growth areas.
“That involves lots of research and studying how other great companies are winning. Also find out what industry associations are predicting and what their members are saying. Are new markets cropping up? Or could you gain share in adjacent markets?”