Growth key to winning in tough economy, reports BDO LLP

The gap between prospering and failing businesses is widening as a result of those who aren't taking advantage of growth opportunities.

That's according to research by business services firm BDO LLP, cited by Fresh Business Thinking, which found that companies who exploit export markets, grow online sales and "differentiate both product and service" are prospering in austerity.

However, those who fail to lead the way with innovative products and services are failing; splitting the business world into a two-speed recovery sector.

According to the survey, media and telecoms are the sectors that are most likely to outperform the wider economy due to the vital need for technology. However, property/construction, leisure and business services sectors will be under the cosh when it comes to performing in a difficult market. 

Shay Bannon, business restructuring partner at BDO LLP, commented on the divide on Stock Market Wire: "There are real growth opportunities for UK companies, but the current two-speed economic recovery is more distinct than ever.

"Do not expect the economy to bounce back in the short term - and in the context of this 'new normal', businesses cannot afford to simply wait it out. Businesses that develop innovative products, distribution channels and a strong customer proposition will gain significant competitive advantage - irrespective of sector," added Bannon.