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Nimble and agile, smaller firms set to increase by 20% by 2020
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Survival of the fittest as those firms who are faster and more cost-efficient set to flourish
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End of traditional business structures with rise of the ‘semi-detached firm’
The next 10 years will herald a ‘seismic shift’ in the business landscape in this country, the likes of which has not been seen since the original industrial revolution, finds a new report looking at the future of UK firms.
The 2020Vision report by Bibby Financial Services foresees that wireless use of the web, giving businesses the ability to be truly mobile, will facilitate an upturn in the number of small and medium-sized businesses in the UK by 20% come 2020. It suggests that the impact the Industrial Revolution of the 18th and 19th centuries had on daily life is set to be felt again 250 years later due to a ‘jump point’ in the internet to 3bn users worldwide. This will herald a marked step in history as the rise in use of smart phones, tablets, online networking and social media changes the business landscape in the UK forever.
Researched and compiled by leading business behavioral intelligence experts Index B, the ‘2020 Vision - the Future of Business’ report focuses on the future of business over the next decade. Among its key findings, it predicts a surge in the number of micro-businesses, often operating outside of traditional business hours and premises.
The report also looks at the rise of ‘semi-detached’ businesses – individuals and firms who will share expertise and develop their own professional networks to take advantage of open market opportunities. It is predicted that such businesses, which will build ‘enterprise hubs’ rather than be centered in cities or towns, will quickly overtake traditional firms. The report also foresees the blurred line between home and work, such as the conjoining of business and personal bank accounts and the lack of physical business premises, making companies themselves harder to identify. This will mean a change in how businesses behave, as well as how suppliers and customers communicate with each other.
However, despite the fundamental changes identified in the report, it does highlight that entrepreneurs of the next decade will still depend as much on business fundamentals, such as access to funding, as their present-day counterparts.
Edward Rimmer, UK chief executive of Bibby Financial Services, comments: “If anything, the past few years have shown that UK businesses have the ability to adapt to face challenges head-on and evolve to respond to new opportunities. However, despite their adaptability and exciting developments in how businesses operate ahead of us, entrepreneurs and company owners can do little without access to the cash they need to grow and develop. Along side a change in how we work in the future, the way companies need, use and access funding as well as the landscape for high street banks will certainly change in the coming years, so it is important the finance industry evolves to meet these new demands head-on.”
Another predication within the report is the rise of ‘lifestyle’ businesses as conflicts between traditional working environments and other responsibilities (notably caring for children and elderly parents) lead people to choose flexibility in their work over higher wages. This will see many enterprises currently dismissed as ‘lifestyle’ businesses grow in popularity.
Business psychologist and CEO of Xancam Consulting, Dr Maria Yapp, says: “These findings will certainly impact differently for each generation of workers in the UK and in particular, on Generation Y (born early-mid 1980s), as it is they who will be taking this new business model forward in the coming years.
“Generation Y are infinitely more comfortable with the idea of the ‘boundariless workplace’. They have the technological savvy to make remote working entirely possible; they are stronger at ‘teamwork’ than previous generations and their networks are much wider. They also demonstrate a strong entrepreneurial streak and research indeed indicates that this generation will be much more likely than its predecessors to start up and run as many as 10 different ‘micro’ businesses over the course of one person’s career.
“The biggest challenge will be more for older generations who have grown up with the established corporate model and will need to adjust to the needs of Generation Y. Established corporations and businesses will need to create a very compelling proposition if they want to attract top talent in the future. There are also likely to be changes in the psychological contract between a business and its employees, with less of a sense that employees are ‘assets’ owned by the business, but moving towards a model of ‘delivery partners’.”
To download your copy of the Bibby Financial Service ‘2020 Vision’ report, please view here
Posted on 17 October 2011