Entrepreneurs target struggling rivals in credit squeeze
More than a quarter of small business owners believe the looming recession offers them the opportunity to acquire competitors struggling to cope with the economic downturn.
Despite business confidence hitting a three-year low amid recessionary fears, falling house prices and soaring interest rates, the poll by Tenon Forum showed 26% of entrepreneurs were laughing in the face of the doom mongers and putting rival firms facing difficulties at the top of their list of opportunities.
Another 51% said they hoped to exploit the current economic climate by winning clients from competitors, while 36% saw the chance to grow organically.
Unsurprisingly, those with previous experience of a downturn were particularly upbeat. Half of those who had survived a previous recession saw potential opportunities, compared to 43% of owners who hadn't.
Rhodri Ferrier, founder of Bulldog Natural Grooming, was among the optimists. "We can definitely see opportunities for our business in the predicted downturn," he claimed. "Services, such as advertising rates, are likely to come down and our male grooming products are very competitively priced in the mainstream. As a fairly young business, we see it as a golden opportunity."
But Tenon's Carl Jackson urged entrepreneurs to be prepared. He said: "By ensuring they have robust business plans in place, SME owners should be able to see their business survive and thrive through the tough times that may be ahead."
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BusinessZONE - 27-Jun-2008
Categories: News
Story read: 2014
