Economic milestones are written indelibly into history. The South Sea Bubble of 1720, the Wall Street Crash of 1929, the Marshall Plan of 1948 and the Financial Crisis of 2007-2008 are events of world-changing significance. In 2020 the world experienced a different kind of economic upheaval, caused not by failures of trading practice but by a virus.
The economic effect of the Covid-19 pandemic has been unprecedented and it’s impossible to imagine the world returning to what we consider ‘normal’. Business practices, supply chains and customer behaviour have all changed, but what the pandemic has done is speed up transformations that were already in progress. The challenge for every business is how to take advantage of the opportunities and innovations that the coronavirus has created.
According to research carried out by Barclays Eagle Labs, UK entrepreneurs predict a growth rate of 37% in 2022 with 58% anticipating an increase in turnover. These beliefs are supported by data that SME transactions have already risen by 38% above pre-pandemic levels. IBISWorld has identified the fastest growing sectors as travel, leisure, hospitality and business services but as the pressure to unlock supply and demand increases, every industry can expect to benefit.
Success will depend on how companies adapt. Remote and home working are no longer the exception but are seen as routine by many employees and while there is much to be said for the collaborative atmosphere of the office, it would be unwise to impose such stringent restrictions on work locations. Investing in hybrid infrastructures has become crucial.
Businesses have also come to appreciate the importance of mental health and emotional intelligence. These are not new issues but the experience of lockdown and furlough has shone a light on them which won’t be extinguished as employers realise the commercial benefits of reduced stress and a commitment to the needs of individuals.
The pandemic has raised awareness of many other issues, not least the urgent climate crisis. 2020 was the greenest year on record with the consumption of fossil fuels shrinking and the UK going for almost 68 days without using any coal at all. The fact that this could happen has influenced businesses in redoubling their commitment to sustainability, which continues to be one of the biggest growth sectors. Other sectors benefiting from the legacy of the pandemic are fitness, digital communications, virtual events and e-commerce.
Prepare your business to seize the plentiful opportunities for growth in 2022 with the financial expertise of Neon Accounting.
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