From the Wires
Will the Con-Lib Coalition have a Positive Impact on UK Businesses?
- 63% of Business Owners say Yes!
By: PR Newswire
May. 18, 2010 09:07 AM
Research indicates that business owners are optimistic about the con-lib coalition and hope that Cameron and Clegg can recover British economy by bringing back financial stability. We asked six business managers and directors to share their views with Zeta (http://www.zeta.net/) about the results of the 2010 General Election. There was a consensus of hope particularly amongst small business owners and entrepreneurs.
An Overview of the Creative Industry
The economic growth of any country comes from the government and the private sector. But let's take a look at the state of the UK creative industries in particular:
Many of us in creative industries have seen a drastic cut back in Private Sector spending; signified by huge cutbacks in client budgets since 2008. This being attributed to huge government spending which has had a negative impact in private sector consumption and investment. When those in management decision making level do not understand the true importance of marketing these divisions are usually the first to see a slash in budget.
Lucky for those of us working in a digital agency (http://www.zeta.net/), we haven't suffered nearly as much at the hands of the public sector over spend. Rather we have seen an increase in online marketing spend with more companies starting to embrace and understand the value of marketing their business and products online. In fact, 66% of companies are planning on increasing their digital marketing budgets during 2010 (econsultancy, 2010).
Creative SME's have competed for public sector contracts
In attempts to further conserve profits many SME's have turned to the public sector to sustain their business. This has been a difficult strategy for some creative SME's due to the rigid procurement processes which prevent smaller private sector providers from competing for public sector contracts. Read more about public sector organisations using private design companies on the Zeta (http://www.zeta.net/industry-news/nhs-60th-anniversary.html) blog.
A Con-Lib Coalition and hopes for economic recovery
The long awaited outcome of the 2010 UK General Election was finally
concluded last week after a long weekend of political confusion, discussion
and debate. After thirteen years of under New Labour ruling, signified by
Spin, Conspiracies and of course the hated Recession - the British public
hopes that an alliance between Tory leader Cameron as PM and Lib Dem's Clegg
as deputy will see
The Conservative-Liberal Democrats coalition has left many UK businesses and business owners feeling a lot more optimistic about trade and the future stability of the economy. The proposed cuts to the public sector spend may finally give private sector organisations the fuel to prosper again.
A study of business owners and executives by employment law firm Citation, found that 63% of business owners believe their company would perform better under the new Con-Lib ruling.
But what is the feeling of business owners and directors in creative industries and other private sector organisations? I sought to do a bit of my own research to see if this figure is representative by asking business executives and directors whether they agreed that UK business would perform better under the new ruling.
The general views reflect the 63% figure, and despite the differing political opinions there is a general consensus of optimism and hope.
"My thoughts on the coalition as a business owner are that I'm concerned
that the government will be stable enough in the medium term to see the
fledgling economic recovery through without tipping the country back in to
recession, especially with a Chancellor as inexperienced as
"I'm very pleased that after much deliberation the Conservatives and
Liberal Democrats have finally struck a deal. If they can put their
differences aside and work for the common good then I see no reason why it
shouldn't be a success. Undoubtedly what we need right now is a government
that acts quickly in cutting the deficit, removes the ludicrous 'jobs tax'
and believes in public sector growth. Also, I think it is good to see wise
political minds such as
Hessia Fernandes, Entrepreneur/Founder of http://www.cooltribe.com - UK Online Green Social network
"The coalition was born more out of need than idealism so I am slightly
suspicious of its agenda and its ability to last. But having said that, there
is a real opportunity for both parties to make it work. I am at the moment
reserving judgement as we haven't yet passed the PR/spin phase. I am
genuinely interested to see what happens in the next few weeks. As a small
business, my main point of concern is
Commenting on the
"49 days to the emergency budget, 4 days to parliament assembling, 11 days to the Queens speech. It is inevitable that there will be significant and major cuts across the Public Sector, inevitable union strife, in addition there are concerns that there will also be civil unrest also across the UK, this has been building for sometime. Unavoidable higher taxes, VAT going up to 20%. So the Private sector just needs to draw a line under it all, look at new markets beyond the UK and Eurozone, where there is growth opportunity and come up with totally new propositions for the UK market and adapt those on a country by country basis and lift itself out very positively of the demise we have been in this past year plus and GO FOR POSTIVE CHANGE AND GROWTH STRATEGIES, which will be driven by INNOVATION."
"I believe the Conservatives are trying to appeal to small businesses by offering normal incentives like waving N.I contributions for the first registered employee etc - which is all well and good, but I worry that if they are unable to live up to expectations and effectively recover the state of the economy there will be no economy left to operate in under con-lib."
What is the future for British Industries?
The facts suggest that business leaders remain hopeful that the new
alliance will help British businesses perform better.
This article was written by
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