Productivity is not improving, the global economy is still flat and it is no surprise that UK businesses, particularly SMEs, should be uncertain in the future.
The situation has been compounded by the government’s announcing a referendum on whether the country should remain in the EU or leave. This, too, has added to the uncertainty. We will look at specific Brexit issues in coming blogs.
However, the question is whether the uncertainty will diminish with the outcome of the Brexit or not vote on June 23.
Or is there something more going on here?
Have we lost the ability to make decisions?
Businesses can’t just sit and wait, they have to get on with things and risk being wrong.
But arguably the rise in the level of uncertainty has contributed to a lack of confidence and an inability to make decisions.
Is it because there is an increased desire to make decisions that are 100% right? Why should this be?
It’s not helped by the fact that banks are paralysed by their inability to support small businesses. They, too, have become risk averse.
Also we are daily bombarded by statistics about the state of the economy, of the world, of just about everything and this can build up a picture that adds to the level of uncertainty, where doing nothing becomes the default position.
Perhaps also the rise of the “blame” and litigation culture plays a part. If something goes wrong we want to blame someone and therefore increased the fear of making a wrong decision.
So lack of confidence and putting off decisions are not necessarily only about the uncertainty over the outcome of the EU referendum.
It may be that British people have lost their edge when it comes to having the guts about enterprise. Perhaps we need to re-learn the art of making a decision in an uncertain world.
(Image courtesy of Vlado at FreeDigitalPhotos.net)