Fear of failure hampering SME decision making – Barclays
A FEAR of failure is hitting West Midlands entrepreneurs, with 62% admitting that they’ve put off making important businesses decisions during the last 12 months in case they make the wrong call.
New research from Barclays, carried out amongst senior decision makers in small and medium businesses in West Midlands, reveals the tough economic climate is causing this business paralysis, as 55% state the economic environment has changed their approach to making business decisions.
Some 21% of respondents say they now play it safe and their focus is now purely on the day to day, whilst 31% admit that economic uncertainty has made them much more hesitant about longer term decisions.
This impact of BoFFs – Businesses overcome by Fear of Failure – could not only hamper individual business success, but could also collectively stall the UK’s economic recovery, Barclays suggests.
Jeremy Stockdale, head of Barclays Business Banking in the Midlands, said: “At the time of making important business decisions it’s only natural to be scared of getting it wrong. It can feel like you are taking a big risk – whether that is decisions about staff, products, finance or even your marketing strategy.
“Despite the tough external environment, there are many opportunities to be seized upon and the ability to make important decisions is vital to the growth of all businesses and the overall UK economy.”
It’s not just economic uncertainty which is making West Midlands business owners fearful, but concerns around cash flow and late payments 39%, increased competition 28% and legislation and regulation 25% are also amplifying these fears.
