Local firms face funding expansion challenge

Funding expansion and managing cash flow are among the biggest challenges facing businesses in Milton Keynes and the South Midlands, according to a survey of local business advisers by PwC.

Just over half of respondents (51%) believe funding expansion represents the biggest challenge to local businesses, while 41% view managing cash flow as a key consideration for the local economy this year.

A total of 39 advisers from the region, including senior lawyers and bankers, took part in the survey during an intermediaries evening hosted by PwC. The event, which was held at the University Centre in Milton Keynes, focused on the regional economy and challenges faced by local businesses.

Mike Robinson, senior partner at PwC in Milton Keynes and the South Midlands, said: “Based on the views of professional advisers, these survey findings provide us with a valuable New Year snapshot of the issues facing local businesses. It is good to see that most are thinking positively about their prospects for the year ahead - their biggest concern being how to raise finance to fund their expansion plans.”

Overall, businesses advisers are upbeat about the year ahead. Despite the large number of overseas companies in the area, the majority of advisers polled (61%) believe the financial crisis currently affecting the Eurozone will have only a marginal impact on their profitability in the year ahead.

Similarly, the majority (85%) of business advisers believe the outlook for the local economy in 2012 is the same or better than last year, with just over half (51%) agreeing that the proposed East-West rail link, connecting Oxford and Bicester with Milton Keynes and Bedford, will have a positive impact on the local economy.

Mike Robinson added: “It is encouraging to see that local advisers believe the current global debt crisis will have only a marginal impact on their business in the year ahead and PwC shares there optimism about the positive impact that investment in local infrastructure could bring to the area.

“Last year was a challenging year for many businesses and 2012 is likely to bring more of the same. Businesses will need to take whatever steps they need to manage costs at the same time as exploring new market opportunities and investing in the development of new products and services."

Contact details
Email: Mike Robinson
Tel: +44 (0)1908 353093