The current economic outlook may be presenting many a challenge
for Midlands businesses, but there are still plenty of
opportunities for established entrepreneurs and private companies
to seize the moment and take their business to the next level, say
experts at PwC.
The news comes after research carried out by PwC among 30
private and family businesses in the Midlands revealed that the
majority of those surveyed believed they are stronger now than when
they entered the recession.
"More private companies tend to be established during a
recession, which is a trend we saw happen in the 1980s and early
1990s and are now seeing again," says Chris Romans, partner and
private business expert at PwC in the Midlands.
"People suddenly find themselves out of a job, which presents
them with the opportunity to re-think their career paths and pursue
any ideas they may have for setting up on their own. Businesses
that are already established tend to take more of an innovative
approach to reducing costs, improving operating efficiency and
focusing on core business activities, which often results in them
emerging from downturns in much better shape."
Opportunities that could be explored by entrepreneurs and
private companies in the Midlands in order to boost their business
include:
The contraction of the public sector creates gaps in the market
that could be filled by entrepreneurs and private companies and
generates an increased need for more services to be outsourced to
the private sector.
More prudent entrepreneurs and private companies can absorb the
gaps created by failing businesses and spot acquisitions that will
enable them to increase their market share and move into a stronger
position.
Entrepreneurs and private companies are often more agile than
large organisations at being innovative and making the changes that
are necessary in order to cut costs.
However, Mr Romans added that despite the many opportunities,
there were common challenges faced by many entrepreneurs and
private companies looking to take their business to the next
level.
"Some companies may want to progress, but may be limited by the
fact they do not have, or are not attracting, the key talent that
will enable it to happen, which is a common challenge faced by
smaller businesses as opposed to larger businesses," he said.
"Many private and family businesses are often centred around one
or two main people who have the skills, experience and knowledge,
but do not necessarily have the capacity to drive the business
forward. In addition they may feel nervous about passing the
day-to-day running of their business to others so they can really
focus on growth and new opportunities.
"However, by planning ahead, being more innovative in their
approach and adapting to economic developments, private companies
can better position themselves to overcome these types of common
challenges or even transform them into opportunities that they can
benefit from."