- Over a fifth of industry titans have pivoted their business over the past 12 months to seize new revenue opportunities
- A third of industry leaders admit cutting back on tech investment was their biggest mistake during previous economic uncertainty as 87% plan to increase investment in new technologies
- Making the UK a more attractive proposition for private investors must be the government's biggest business priority
Data from Elixirr (AIM:ELIX), the challenger consultancy, reveals that over a fifth (22%) of business leaders and visionaries have pivoted their business over the past 12 months to seize new revenue opportunities. This follows a turbulent four years as UK businesses have faced three different Prime Ministers since 2020, fluctuating inflation rates and increasing corporation tax. However, businesses which have challenged the status quo and pivoted their strategy have put themselves in a stronger position to drive growth and revolutionise their industries.
The research, which surveyed over 500 enterprise leaders* across IT, retail, construction, manufacturing, finance and professional services, found that the majority (86%) of these industry titans believe that taking calculated business risks to outpace their competitors makes them a better leader.
Entrepreneurial mindsets encourage risk taking
Business leaders who think differently are already laying the groundwork for future growth, getting comfortable with uncertainty. Those looking to shake up their industries are, therefore, balancing strategic risk and reward. As a result, 86% of industry leaders have taken a calculated risk that helped the business grow in the past 12 months compared to just 11% who hadn't.
This thinking ladders up to board members. Only 17% of board members believe that risk taking was a challenge and just 16% said becoming comfortable with uncertainty was another. At a time when many businesses across the UK are in preservation mode, those who are willing to go against the grain are best placed to succeed.
Seizing growth opportunities amidst economic political uncertainty
Unafraid of being proactive when it comes to vital business decisions, over a third (36%) of industry giants have restructured entire business departments over the past 12 months.
What's more, despite many businesses downsizing, those surveyed have, instead, committed to future growth with over a quarter (28%) having taken the step to expand their UK office space. Being bold and pivoting strategies have proved to be a winning tactic as only 10% of these companies had to prioritise making layoffs over the past twelve months.
Evolving and innovating through positive change
Unsurprisingly, industry leaders are leveraging technology to pivot and shake up the status quo. Learning from previous downturns, they're doubling down on investing in the latest technology, seeing this as a key tactic to outpace their competitors.
As a result, a third (33%) of enterprises said that cutting back on tech investment was the biggest mistake during past periods of economic uncertainty. This was followed by cutting back spending on marketing and advertising (25%) and waiting too long to seek external investment (24%). Looking ahead, over the next year more than half (56%) of enterprises are planning to prioritise tech investment to drive growth. So much so that 87% of industry leaders plan to increase investment in innovation to navigate economic uncertainty and outperform their competitors.
Leading businesses are also betting big on AI as a way to open up new revenue opportunities and streamline operations, despite the Labour government axing a £1.3billion tech and AI fund**. Nearly two thirds (60%) of enterprises said that AI was their top investment area when it came to technology, far ahead of the Internet of Things (23%), ML (22%), AR/VR (15%) and blockchain (12%).
However, industry visionaries have spoken in order for companies to innovate through technology, they need greater private investment opportunities. Calling on the new government, a quarter (25%) of business leaders believe that making the UK a more attractive proposition for private investors should be the top business priority.
Stephen Newton, Founder and CEO of Elixirr, said: "Business confidence is dropping. We're hearing from leading business groups that confidence is plummeting over potential government measures that will raise taxes and deter investment.
"As we're already seeing in China, when ambitious entrepreneurs who aren't afraid to invest heavily in the country's economy start to leave for more appealing financial incentives elsewhere, businesses close and jobs are lost. This has a significant domino effect on the wider economic outlook.
"Ahead of the UK's upcoming Autumn Budget, it's clear that the UK still has a way to go when it comes to raising this confidence and rewarding more ambitious business leaders. With a quarter of business leaders calling on the new Labour government to make the UK more attractive for investment, cutting government red tape, especially around proposed inheritance tax reforms, and taking a more holistic approach to tax cuts, will be crucial. Creating an environment that encourages success and returns is absolutely necessary to boost investment and grow thriving businesses.
"However, our research has shown that these industry giants are going against the grain, taking risks to ensure they are the front runners when the economy becomes more favourable. We need to ensure that we are celebrating high performance and, most importantly, encouraging the willingness to take risks to deliver returns."
Fresh viewpoints build stronger companies
When it comes to talent, the best thinkers are already looking ahead to the roles they'll need as AI and new technology continue to shape the future workforce. More than half (56%) of enterprises reported that over the past year bringing in new staff was key, with 48% continuing this into the next 12 months. In fact, when asked about mistakes made during previous turbulent periods, a fifth (20%) said making early layoffs damaged their business.
However, the challenge for most businesses is finding the right talent. With Brexit still impacting the number of skilled individuals in areas such as technology, businesses are struggling to find the right talent that not only have the skills but the entrepreneurial spirit to support their ambitious growth plans. As a result, almost a quarter (23%) of businesses want Labour to focus on tackling the UK skills gap to propel their industries forward.
While businesses are taking matters into their own hands when it comes to battling against an unfavourable economy and investment landscape, it's crucial that the government rewards this entrepreneurial spirit.
Methodology
*This research was carried out using Vitreous World. It sampled 501 UK business leaders with £10M+ turnover online in August 2024. The margin of error is +/- 4.4%.
**Source: BBC News
About Elixirr:
Elixirr is an award-winning global consulting firm working with clients across a diverse range of industries, markets and geographies. Founded in 2009, the firm set out to be the 'challenger consultancy' and do things differently than the large corporate consultancies dominating the industry: working openly and collaboratively with clients from start to finish, delivering outcomes based on innovative thinking, not methodology, and treating each client's business like their own. Elixirr has been quoted on the AIM market of the London Stock Exchange since 2020. In addition to strong organic growth, Elixirr has acquired six boutique firms Den Creative, Coast Digital, The Retearn Group, iOLAP, Responsum and Insigniam to grow their capabilities, expand into new geographies and markets, access new clients and talent, and more.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241008314563/en/
Contacts:
Clarity Global for Elixirr
elixirr@clarity.global
