Although there may have been little to celebrate in the gloom of the last 12 months, respondents to the survey felt the recession will improve business efficiency and increase opportunities as less able competitors fall by the wayside.

Half of those questioned felt there would be a positive outcome for their firms from the recession, with 33% of FDs in the financial services and manufacturing sectors expecting to pick up new business from the elimination of competition.

The fall in the value of sterling was cited as beneficial by exporters although they expressed concern about constraints in global demand.

Other businesses saw a fall in input costs as positive, particularly in the labour market where there was a better supply of skilled workers available at reduced cost.

In terms of the UK economy as a whole:

• Less than one-third of FDs expect the UK to have a simpler tax regime post-recession;
• Nearly three-quarters (72%) are preparing for a tighter regulatory environment, not just in the financial sector but across the economy as a whole;
• 52% believe it will be harder to reduce their workforce in the post-recession environment;
• Half of respondents think the UK will prove a more attractive location for foreign investment thanks to improved efficiency.

High levels of redundancies coupled with consolidation in some sectors as the more cash rich or efficient businesses acquire less well placed competitors is also likely to increase opportunities for new entrepreneurs. Previous recessions have shown a significant increase in the level of entrepreneurial activity.

“Whilst market conditions are clearly still tough, and bank or third party funding hard to come by, now may present some good opportunities for start up businesses. More than ever, consumers are looking for good value with price being a key driver behind buying decisions. New businesses could exploit this opportunity by taking advantage of their lower cost base and ability to service clients or sell services at cheaper rates than their more established competitors who have higher fixed costs to cover.”
David Blacher, Audit Partner, Baker Tilly