Growth replaces survival for Europe’s business community

A stark contrast in the mood of Europe’s business community is emerging as four out of five companies predict healthy growth over the next year compared to the ‘doom and gloom’ proffered by many, according to a study.

The European Business Awards, sponsored by HSBC, yesterday released the findings of their Business As Usual? study.

Over 600 of Europe’s top business leaders took part in the study which examined attitudes towards doing business over the next 12 months.

Eight out of 10 businesses expect to grow in the next 12 months, while over half of businesses expect growth of 10 per cent or more. Meanwhile, three out of 10 expect growth of more than 20 per cent.

The world just got smaller: A third of businesses are looking to take advantage of new markets beyond domestic borders; a fifth is looking at making more of global markets beyond the European community. One in three is looking to dominate its sector and has ambitions to grow while 29 per cent feel it is essential to diversify product offerings and services. Only six per cent of European businesses are concentrating on core business.

Fifty-eight per cent of businesses said they are investing in their organisation while 24 per cent are investing in training and 39 per cent plan to invest in their existing talent.

Adrian Tripp, chief executive officer of the European Business Awards, said: “During the recent recession firms were encouraged to focus solely on their core business, however, our research shows that only six per cent of European businesses plan on following this mantra in the coming year. Furthermore, investment in staff and recruitment are often among the first casualties of economic turmoil, but a quarter of businesses are expecting to invest more in their staff and over half are expecting to recruit. With four-out-of-five businesses predicting health growth the future for European business looks bright.”

Alan Keir, global co-head of commercial banking, HSBC, said: “The European Business community has responded to past uncertainty by grasping opportunities and accepting that investment and growth is the key to success. The hunger for growth and ­success, coupled with a sense of optimism, means that European businesses will go from strength-to-strength.”