Vistage CEO survey shows UK SME leaders facing economic doubt

Vistage has announced the results of its quarterly CEO Confidence Index for Q3 2024, revealing significant economic uncertainty among small and medium-sized enterprise (SME) CEOs in the UK and Ireland. The index dropped from 111.6 to 107.1, indicating a decline in overall confidence.

Only 29% of business leaders expect economic conditions to improve within the next 12 months. In contrast, nearly two-thirds (64%) anticipate an increase in their firm's sales revenues over the same period, and almost half (46%) plan to expand their workforce.

With the new Labour Government set to reveal its Autumn Budget, 82% of SME CEOs expressed concerns about its potential adverse effects on their businesses. Areas of concern include sales (39%), hiring (37%), investments (31%), inflation (21%), and interest rates (16%).

The Government's proposed 'Right to Switch Off' initiative is also causing division within the SME community. While 33% of CEOs support the bill, 38% are against it.

A substantial number of business leaders continue to prioritise skills and leadership development. According to the survey, 69% of CEOs have already implemented leadership programmes, and 68% have introduced skills development initiatives. Furthermore, 94% of business leaders have either started or plan to invest in corporate engagement and culture within their teams.

Amidst the prevailing economic uncertainty, many companies are considering the role of Artificial Intelligence (AI) technology in their operations. Over half of the respondents have already implemented measures to streamline processes using AI, while an additional 42% are working on such plans. Moreover, 85% of SMEs have either introduced or are planning to introduce more AI into their business operations, and 81% have implemented or plan to implement automation capabilities.

Rob Ristagno, President of International at Vistage UK, commented on the findings: "Despite a fall in economic confidence this quarter, with a new Government in power and the Autumn Budget coming up, business leaders are taking important steps to navigate uncertain waters while still planning for growth and increased revenue. As we look to support various executives and leaders across the UK and Ireland through mentorship during what may be a challenging time economically, we feel optimistic that growth is on the horizon. Strategically, organisations are investing and priming their most important 'assets', their talent, with the skills and tools needed to thrive and adapt. SMEs are also learning to embrace AI and automation as a means to streamline processes and ultimately boost productivity."