Almost half (46%) of all UK businesses over 20 years old fear they will not survive a recession, according to the latest research from HR, payroll and finance expert MHR.
In response, a third (32%) of these organisations reported that they are currently looking to improve their business resilience, however a more than one in ten (12%) have not made any significant changes to their work processes in the last five years. This is in spite of more than 8 in 10 businesses (84%) acknowledging that their reliance on legacy systems is causing challenges and disruption to their business.
With a recession on the horizon, organisations must address these risks and issues head on and identify which part of their business requires the most attention. Unsurprisingly, of the organisations that have made changes to boost business resilience in the last five years, digital transformation programmes (70%) was the top action taken, followed by improved processes (52%), workforce management (52%), and improved access to data (50%).
MHR surveyed over 500 senior managers in organisations across the UK as part of its Business Resilience Report to find out their views on business resilience and the future of their organisations.
Anton Roe, CEO at MHR, said, “Long-standing, multi-generational businesses are a central pillar to the economies and communities in the United Kingdom. These businesses, that have been serving their customers for 20 years or more, have weathered all manner of challenges in their time, so it is alarming to see that half of them do not believe they will survive the impending recession.
“Technology will be vitally important if we are to save these businesses and turn around their fortunes. Good, growing businesses must always be on the look out for ways to improve and evolve – just because a certain way of doing business has worked in the past, is no guarantee it will continue to work in the future.
“These are unprecedented times, both socially and economically, and with the Government and Bank of England both warning of a recession in the coming weeks, now is the time for the UK’s legacy businesses to embrace technology, transform their practices and boost their resilience.”