‘Nimble’ private businesses poised for growth – PwC

Chris Romans and Paul Norbury of PwC meet Sir Peter Rigby at the recent Private Business Forum dinner at Swinfen Hall.

THE strengths of private and family-owned businesses are coming in to their own, as their prudence  and market expertise position them to ride the recovery, says PwC.

The accountancy and advisory firm surveyed members of its Midlands Private Business Forum, and found that the careful cash management which is a hallmark of private businesses, plus the insight of ‘hands-on’ owners meant they were well-placed to exploit the upturn.

Chris Romans, partner at PwC, said: “Private businesses are run more prudently and are far less exposed to debt than larger publicly owned enterprises. From the owner’s point-of-view, it’s their wealth in the business and they therefore don’t take on too much debt.

“When the tough times come, they’re often in a better position to take opportunities to acquire new businesses or invest in new processes. They’re altogether more nimble than larger businesses.”

That flexibility also applies to the ability of private businesses to innovate, according to the survey. Almost 90% of respondents said supporting innovation was critically important to the longer term success of their businesses and the Midlands economy.

Mr Romans said the structure of private businesses put them at the forefront of innovation. He said: “In businesses like these, owners are often very involved and close to the industry or sector they’re 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.”

Reported in thebusinessdesk.com | By Marc Reeves

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