While we seem to be all teetering on yet another economic retraction, believe it or not confidence in UK business remains at relatively high levels.
The UK economy has more or less been a complete shambles since the credit crisis and resultant economic downturn from 2008. Recovery efforts have been sluggish and the fears of a double-dip – and now triple-dip – recession have been running rampant throughout the press and online media, but despite the fact that the sky may be falling, there are some indications that it might not be as bad as all that.
In fact, the Office for National Statistics released new figures showing that there was a relatively small reduction in gross domestic product for the UK of just 0.3 per cent in 2012’s last quarter, most likely due to a lack of business investment and the ongoing trade deficit. However, there’s no reason to react with gloom and doom to these new figures, according to David Kern, the British Chambers of Commerce’s chief economist, who remarked that confidence for businesses remain high even in the face of the slight drop off in GDP.
It’s too early to say for sure, the chief economist added, but there are some very positive retail figures coming through. This makes the chief economist predict that the chances of GDP returning to growth in 2013’s first quarter to be quite good. On top of that, firms interviewed by industry experts – especially smaller ones – have reported that they have relatively high levels of confidence about the performance of their businesses this year, even in the face of continued economic pressure.
Small business confidence is key for the freelancing and contracting market, as umbrella company contractors are a favourite of small firms looking to keep costs low but still remain productive. The flexibility of contract workers has long been touted as a fantastic way to aid small firms in their attempts to grow in times of economic turmoil, and many have referred to freelancers as the backbone of the UK’s economic recovery efforts, such as they are.
I’m absolutely inclined to agree with that assessment, considering how more and more people seem to be joining the ranks of the self-employed instead of labouring under the yoke of permanent employment. It used to be that ‘self-employed’ used to be a polite way of saying ‘I’ve been sacked,’ but now that’s just not the case any more; everyone knows at least someone who works for themselves, even if it’s just out of their home office, and it’s just as valid a way to earn a living as it is being yet another salaryman.
