Waves of Recession
Looking back on 2008 / 2009 we can see what global economists have termed the “Waves of Recession” roll over the Wealden economy. Following the 2008 trigger event of a collapsing property bubble - Wave 1 was witnessed in the immediate withdrawal of overdrafts resulting in the sudden closure of several debt laden local businesses. Wave 2 in 2009 has seen the annual rate of lending to business fall at an ever increasing rate, month after month – and as we head into 2010 – Wave 3 is in the form of Public Sector spending cuts combined with the aftershock effects from Waves 1 and 2 closely followed by Wave 4 – where we all look to tighten up on commercial and personal indebtedness - causing a substantial lowering of commercial investment and increased focus on personal saving.
In the past year EDEAL has seen the waves take effect from the sudden closure of substantial local businesses to rising order pipelines for those who main markets are exports (the falling Pound v. Euro making our goods very attractive). We have also seen the mainstay of the Wealden economy – the Small to Medium Enterprise - remain relatively stable with new entrants appearing all the time. In many ways the SME community is riding the ‘Waves’ more successfully than most by being open to change, taking tough decisions and developing new tactics to ensure their survival.
Typically the owners and employees of SME’s, especially those less than 5 years old are exhibiting a drive and ambition to succeed that will see the majority leave the recession stronger and more resilient than ever. So what are they doing?
They are viewing the recession as a challenge, diversifying to meet new market needs, updating their IT systems to increase market reach and operational efficiency, creating new ethical values for their services by joining service assurance schemes such as the highly successful ‘Buy With Confidence’, seeking SFEDI (Small Firms Enterprise Development Initiative) accredited expert advice to develop key aspects of their business, providing an exceptional customer experience upon every contact and managing their finances professionally. In essence remaining dynamic, open to change and receptive to new ideas.
There is a wealth of free and low cost professional business advice available in Wealden, and 2010 is the time to take advantage of it. EDEAL is working in partnership with Wealden District Council to support and develop local businesses of any size from Sole Trader to Corporate, so please call us on 0844 2640390 or info@edeal.org.uk to see how we can help your business in 2010.
Ray D. Mason DipM FCIM
EDEAL – Chief Executive
