Private Businesses Well-Placed for Upturn
Research suggests that private and family-run businesses are better placed for the upturn.
Following a survey of PwC’s Midlands Private Business Forum, the company found that the careful cash flow and financial management of family-run and private businesses, combined with personal investment and ‘hands on’ ownership, meant that the firms were better placed to benefit from the economic recovery than larger corporations.
“Private businesses are run more prudently and are far less exposed to debt than larger publicly owned enterprises,” said PwC Partner, Chris Romans, speaking to TheBusinessDesk. “From the owner’s point-of-view, it’s their wealth in the business and they therefore don’t take on too much debt.”
He said that during instability or tough times, these companies are often in a better position to take advantage of certain opportunities, such as the acquisition of new businesses, and are “altogether more nimble” than larger businesses.
The survey suggests that the flexibility of private businesses means they are also more able to innovate. Around 90% of respondents said that innovation was crucially important to their long-term success and the Midlands economy.
Mr Romans added: “In businesses like these, owners are often very involved and close to the industry or sector theyΓÇÖre working in. They’re often experts in their field and can spot opportunities early so their business can really be at the leading edge of innovation.
“The typical private business culture is when the owner manager sees it as their responsibility to be looking ahead for new trends and to do new things.”