A recent survey by challenger consultancy Elixirr has revealed that 22% of business leaders in the UK have pivoted their strategies over the past year to seize new revenue opportunities. This shift comes in the wake of significant political and economic instability, including fluctuating inflation rates and rising corporation tax, experienced over the last four years.
The research, which included responses from over 500 enterprise leaders across sectors such as IT, retail, construction, and finance, highlights that 86% of these leaders believe taking calculated risks is essential to outperform competitors and become better leaders. More than half of the respondents (56%) plan to prioritise investments in new technologies to drive growth.
Despite the overall climate of uncertainty, 36% of industry leaders reported restructuring entire business departments, while 28% have expanded their UK office space, contradicting trends of downsizing seen elsewhere. Only 10% of those surveyed had to prioritise layoffs in the past year.
The survey findings also indicated that many leaders regretted cutting back on technology investments during previous economic downturns, with a third (33%) citing it as their biggest mistake. Looking ahead, 87% plan to increase their tech investments over the next year, particularly in artificial intelligence (AI), which 60% of enterprises consider their top investment area.
However, industry leaders are calling for greater private investment opportunities to foster innovation. A quarter of business leaders believe the government should prioritise making the UK more attractive for private investors, particularly in light of the Labour government’s recent decision to cut a £1.3 billion tech and AI fund.
Stephen Newton, founder and CEO of Elixirr, commented on the growing concerns among business leaders regarding government measures that could deter investment. He warned that if the UK fails to create an environment that rewards entrepreneurial ambition, it risks losing talent and businesses to countries with more appealing financial incentives.
Amid these challenges, industry leaders are also focused on talent acquisition, recognising the importance of skilled workers in navigating future technological changes. More than half of the surveyed enterprises reported that bringing in new staff was key to their growth over the past year, with nearly a quarter (23%) urging the government to address the skills gap exacerbated by Brexit.
Newton emphasised the need for the government to cut red tape and adopt a more holistic approach to tax cuts, particularly concerning inheritance tax reforms, to support business growth. He stressed the importance of recognising and rewarding high performance and the willingness to take risks in a challenging economic landscape.
As UK businesses adapt to shifting economic conditions, the findings underscore a broader trend of innovation and resilience among leaders willing to challenge the status quo in pursuit of growth.