37% of Peruvian entrepreneurs expect to increase the number of collaborators in the next 12 months

37% of Peruvian entrepreneurs expect to increase the number of collaborators in the next 12 months

During the second quarter of 2021, there was a drop in the confidence of the on how the different business sectors would develop in the short term. This trend continued downward in the third quarter of the year, but on a lesser scale, according to the III Confidence Index prepared by Vistage Peru.

This reflects that although there is a recovery in consumption and an accelerated advance of the vaccination plan against COVID-19, it has not been enough for business leaders to fully regain their confidence in the Peruvian economy.

According to the results of the report, which was made to members of Vistage Peru and other CEOs, owners of organizations and general managers, business confidence had a decline of 3 points, going from 98 to 95 points, being a somewhat encouraging outlook considering that the fall between the first and second quarters was 17 points.

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“Despite this result, more than half of the entrepreneurs surveyed believe that the profitability of their organizations will increase in the next 12 months. The main challenges for them, in the current scenario, are the advance of the exchange rate and the forecasts for the closing of inflation. It is worth highlighting the recovery of the construction sector, as well as that of restaurants and commerce “, indicates Ignacio Mealla, director of Vistage Peru.

Economic and business expectation

In the second quarter of the year, 27% of CEOs in Peru were confident of an economic improvement in the next 12 months, while the percentage in the third quarter fell to 22%. On the contrary, more than half of those surveyed (53%) consider that the Peruvian economy worsened between July and September, despite growth projections.

It is also noteworthy that 29% of company owners, managers and executives do perceive an improvement compared to the previous year, when the Peruvian economy was just beginning to stabilize after a peak of infections in the midst of the pandemic by the COVID-19.

Ignacio Mealla highlights that Peruvian CEOs have few expectations that the national economy can recover in the coming months, with 30% representing those who believe that it will be worse than now, while 48% think that the economic situation will continue to be similar.

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Investment

Likewise, the percentage of business leaders who expected to increase investment in the next 12 months went from 24% in the first quarter to 22% in the second quarter.

“Despite the results, Peruvian entrepreneurs continue to do the work of wondering what they can do better for their businesses and teams, proposing new strategies and executing them”Mealla pointed out.

On the other hand, 57% expect their billing to increase in the next 12 months, four points less than last quarter; 31% that remain the same and 12% that fall, six points less compared to the second quarter.

Recruitment

Although in a crisis, the hiring of personnel is usually the hardest hit, according to the Vistage Peru survey, a more encouraging outlook is evident in which only 16% of business leaders foresee a reduction in the number of collaborators in the next 12 months. This represents an increase of 4%, compared to the period from April to June (27%).

“It is also essential to note that 37% of entrepreneurs trust that the total number of employees they currently have in their company will be higher in the next 12 months, which is encouraging”, he stressed.

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