Bosses gear up for competitive markets in 2008.

NEARLY three quarters of UK companies believe that doing business will be more competitive in 2008, according to new research from Barclays Commercial Bank.

But, whilst the research found that the market environment would be challenging this year, overall owner managers are confident of their ability to manage external threats to their business such as the economic environment and market competition.

Two thirds are quite confident in their risk management capabilities and one in five are very confident.

John Union, Barclays commercial director for Wales, said: "It's unsurprising that businesses are pointing to 2008 as a year when competition will be tough.

"For Welsh businesses. prospects of economic growth are still reasonable. The local economy has really gained momentum in recent years - with improving employment prospects a key indicator.

"Public services continue to be an important and expanding sector, with the advent of self-government providing additional impetus to growth. Diversification does remain a challenge for the region, however, with financial services, for example, still making a relatively small contribution to the Welsh economy."