Restaurateurs and hotel owners are being urged to innovate to give them a competitive edge during the credit crunch.
A report by the CBI and Qinetiq, released last week, shows that businesses in the services sector that take risks and try new ideas even during an economic slowdown are often more likely to succeed.
CBI Director/General Richard Lambert said: “When times get tough, firms may want to stick to what they know best rather than try out new ideas. But the services sector contributes three-quarters of the UK’s economic activity, so its continued dynamism is a matter of vital importance.”
The CBI spoke to a range of businesses in the sector for the report and found that culture and market forces are the two main drivers of innovation. They also found that firms willing to learn were most likely to succeed.
"What these companies said makes sense – that successful innovation comes down to people, not just processes, and that trusting your customers and giving your ideas time to develop is vital. When you act, you must move fast and learn from your failures, but don’t beat yourself - or others - up when things go wrong," said Lambert.
The report also found that overly-complex government legislation, finding the staff with the right skills and persuading banks to fund new ideas are the biggest barriers to companies introducing new ideas.