In 2015, recruitment was considered the greatest challenge by business leaders in the UK, according to the Company Check Business Census, a survey of 1,009 business leaders conducted in December 2015.

However, 2016 is a year of change and the business population has responded. In 2016, the biggest challenge business leaders anticipate is the economy - which comes as no big surprise considering the pending EU referendum and changes to minimum wage laws which will impact businesses across the country well into the future.

The economy was cited by 32% of respondents as the greatest threat to their business growth in the coming year, ahead of recruitment which fell from 24% of the vote in 2015 to 21% in 2016.

Concerns over political uncertainty have also taken priority for many, with a 40% rise in the number declaring this as their main concern; up from 11 to 16 per cent.

Again, this will come as little surprise following increased terror threats following the Paris attacks and global unease due to the ongoing threat of terrorism, as well as changes within the British political parties indicating a lack of consensus around the best way forward in combating these threats.

Political instability around the world is causing negative ripples

So what does all of this mean for business leaders in the UK today?

The reason we decided to run the Business Census survey was that there are plenty of statistical analyses available to show us the numbers behind business, but few to tell us how business is experienced by those who immerse themselves in it every day. By asking the questions of business leaders, we were able to gain a real insight into the things that concern us most - and where the opportunities for growth lie.

Despite some turbulent times in recent years (let’s not forget, we’re still a country recovering from a catastrophic recession), almost three quarters of businesses surveyed (73.9%) predict growth for the coming year in terms of turnover.

When asked which were their highest growth departments, the majority of business leaders cited either marketing or production, indicating a positive, growth led economy. In investing in these important fulfilment areas, we show that UK businesses are now, perhaps more than ever, willing to put money and resource into doing more - a far cry from the fire-fighting approach we took early in the decade.

As digital marketing expert Tom Craig of Impression said in an analysis of the Business Census:

“Marketing is an important element of any business’ success. As digital marketing has continued to grow in popularity and new tools and techniques make it easier to prove the value of marketing investments, more and more businesses and investing in this area.”

As we continue to move further away from the recession period, it’s important that we, as business leaders, drive growth through investment and diversification. A focus on retaining talent and allowing our people to contribute to our success will also be an important factor.

But that’s not where the story ends. One of the questions in the Business Census related to local government support. When asked ‘does your local government do a good job supporting business growth’, almost 60% answered ‘no’.

2015 was the year when the government’s Business Growth Service was ceased and further cuts are expected into 2016. Is this the best way to support our economy’s success?

Reading Council: Some say local authorities should be doing more

Arguably, there are still plenty of support services available and, as local government representative Simon Hall of Nottingham City Council commented in the report:

“Local government knows that it needs to do better in this vital area. That’s why each Local Economic Partnership has recently set up a Growth Hub to address this. These local Growth Hubs have the specific remit of supporting business growth and particularly in ensuring that ambitious businesses are fully aware of all of the support that’s currently available to them. This is starting to work.”

There’s no doubt recruitment and retention of talent will continue to be a challenge. As Shashi Kapoor of UK leading manufacturer Harvey Water Softeners said in his comments on the report, recruitment particularly outside of London is a struggle, especially in those careers such as manufacturing where demand outweighs supply.

However, it’s the economy which will be the make or break point for companies as we progress through the year. The decisions made within our government and the provision of support via local authorities and initiatives will be integral to business success moving forward.

Click the link for full access to the full report from Company Check.