Private businesses more willing to take a risk in order to grow

PRIVATE businesses in the Midlands are demonstrating an increased willingness to take risks in order to achieve growth, adviser PwC has said.

The firm said traditional cautiousness was easing and there had been a marked rise in entrepreneurial spirit with companies looking to escape economic oppression.

It said private business owners were generally more risk adverse, but as time goes on and the depressed economic conditions continue, some were returning to their entrepreneurial roots.

The more ambitious were shifting their focus and demonstrating they were prepared to venture into uncharted areas in a bid to secure new deals and break into new markets.

Chris Romans, partner and private business analyst 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.”

However, he said making cost reductions, improving efficiency and focusing on core business activities remained 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,” added Mr Romans.

“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.

“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.”