Many businesses may still be feeling the after-effects of the
credit crunch however, a return to entrepreneurial spirit is
emerging from the economic downturn with private businesses aiming
to achieve growth against the odds, say experts at PwC.
Private business owners are generally more risk adverse, but as
time goes on and the depressed economic conditions continue, some
are returning to their entrepreneurial routes. They are shifting
their focus and demonstrating they are prepared to explore areas
they have not ventured before in a bid to secure new deals and
break into new markets.
Chris Romans, partner and private business expert at PwC in the
Midlands, said: "The onset of the credit crunch may have been four
years ago, but the outlook for many businesses hasn't improved a
great deal since then due to Britain's slow economic recovery
coupled with the wider global debt crisis.
"This is especially the case for private businesses who, unlike
listed organisations, tend to make more measured, long-term
decisions as a result of often only having just one main source of
wealth. But changes are afoot as an increasing number of Midlands'
private businesses are realising they do need to take risks in
order to stay ahead and challenge their competitors."
Mr Romans added that making cost reductions, improving
efficiency and focusing on core business activities are still the
main priorities for private businesses.
"As well as re-examining their business to ensure they are
operating as efficiently and effectively as possible, many private
businesses are pushing new boundaries by exploring ventures they
have not previously considered. This includes pursuing overseas
market opportunities, joint ventures with other businesses in their
field or public sector providers in the wake of the contraction of
services provided in this sector," he said.
"We are also witnessing an increasing number of brave
entrepreneurial frontrunners, who are taking a more aggressive
approach towards increasing their market share, including
seizing opportunities created by weaker competitors. It's a
challenging time for the region's private businesses, but
opportunities do exist for those who are prepared to evolve and
take risks."