Olena Volkova on #How_business_can_emerge_stronger?

“This year, the level of CEO optimism towards potential recovery and growth of the global economy has reached a record high in the decade. Three quarters of global CEOs expressed confidence in favourable conditions to recover from the 2020 crisis. This optimism also extends to the businesses they lead. In particular, 36% of our respondents have positive expectations of the revenue growth of their business in 2021, which is in line with the pre-crisis median. CEOs whose business operates in the healthcare, telecom, technology and private equity sectors have the highest level of short-term confidence in the growth of their business.

As for concerns, countering cybersecurity threats and misinformation, over-regulation and tax uncertainty remain in the focus of attention.

Nearly half of CEOs intend to increase the level of investment in digital technology by at least 10%, leveraging automation to enhance productivity and, at the same time, looking after the health and wellness of their people.

Therefore, our survey shows that global CEOs expect 2021 to become a year of economic recovery and growth. Do Ukrainian CEOs share the optimism of their global peers?

As a PwC Partner who has access to firm-wide numbers and statistics and talks with large businesses in Ukraine on a daily basis, I observe the way various external factors influence changing mood of local CEOa

As recently as a month ago when the vaccination started the majority of businesses in Ukraine were optimistic and saw prerequisites for growth both for the economy and their businesses. Starting from autumn last year we have been observing gradual energising of M&A market and this investor mood indicator affected the mood of local CEOs and added cautious optimism to the last-named.

Lockdown in the capital and several regional centers of Ukraine as well as red zone expansion on the territory of Ukraine had a negative impact on the business community spirit including small businesses (which is obvious as it is more vulnerable to external fluctuations) and big companies. Less than a half from our local CEOs focus group remained optimistic with the uncertainty which is not possible to manage but requires reaction.

What’s next? I would describe today's state of the market as ‘stabilization’: when the worst decline is over and business has mostly adapted to the new conditions, and the health of business processes is improving gradually. Taking into account the fact that I work a lot both with large companies and medium and small size businesses, I know for sure that this stage can become a prerequisite for growth but only in case of effective anti-crisis management.

Currently, I would advise my clients to resist the temptation to treat this period of relative stabilization as an opportunity to return to the old normal as soon as possible and give a new start to their business. The challenges that each of us spent this year overcoming have led us to a crossroad and a turning point in history. Now the business needs to decide where to go next. And, importantly, whom to take on this journey with them as a trusted business partner and advisor”.