CEOs in the UK are more optimistic about future growth than their counterparts in almost every other country in the world, but they are also more concerned than the average about the problems of over regulation, according to research by PwC.
PwC's 17th Annual Global CEO Survey shows that 93% of UK CEOs are confident about their own company's revenue prospects over the coming 12 months, up from 78% in 2013. UK business leaders are significantly more confident than the average global CEO and also than the vast majority of their European counterparts.
UK CEOs are also more positive about the outlook for growth in the global economy than their peers, with 61% thinking it will improve in the year ahead, up from just 11% last year. Around two thirds of UK CEOs (65%) plan to increase headcount in their business this year, up from 45% in 2013, and considerably higher than the global average of 50%, although 75% also aim to reduce costs.
Ian Powell, chairman and senior partner of PwC UK, said: 'The sharp recovery in confidence in the UK may partly reflect the length and depth of the downturn, with businesses' pent-up growth potential finally being released. Companies right across the UK are moving beyond the private optimism they've been expressing in the boardroom to real activity in the market.'
Asked whether they think their business units are prepared for change, UK CEOs are almost unanimous (97%-98%) that finance, the board and the executive team are ready, but are less sure about procurement and risk management, both at 89%, or R&D (75%).
Asked to name the biggest threats to their business, 77% of UK CEOs compared to 72% globally highlight the risk of over regulation. UK leaders called for regulation that focuses on outcomes rather than processes (57%), a reduction in the total number of regulations (55%), and regulations that are clear and designed for the long term (50%).
UK CEOs see product and service innovation (48%) as the top way to grow their business over the next 12 months, followed by increasing their market share in existing markets (25%), M&A (16%), and then joint ventures or strategic alliances (16%). Only 5% expect their main growth in the year ahead to come from new geographic markets, well behind the 14% of CEOs worldwide who expect growth to come from new export markets.
