Rickerbys’ Survey reveals Gloucestershire Businesses are fighting back 

Part two of the Gloucestershire Business Survey reveals that two thirds of businesses have taken steps to improve financial controls during the recent recession in Gloucestershire, while 72% have perceived a change in attitude to financial control on the part of their suppliers. 

The survey of 587 businesses in Gloucestershire carried out by Solicitors Rickerbys LLP has revealed some interesting statistics in relation to business behaviour in the County.  Edward Davies, Corporate Partner at Rickerbys felt that the survey made interesting reading. 

He said, "The measures that local businesses have introduced include bringing in additional staff to deal with debt where necessary, using external agencies to collect debts such as solicitors and being less tolerant of late payment, while rewarding early payments with an early settlement discount.

"Businesses in Gloucestershire appear to be a little more tolerant than elsewhere, particularly suppliers from outside of the County.  This is demonstrated by the fact that two thirds of the County's businesses improved their own financial controls during the recent recession, while almost three quarters of suppliers to the County introduced tighter credit control in one form or another.  Anecdotally, I have heard of many suppliers withholding products if accounts become overdue even for a short period."

According to the survey, 39% of the County's businesses felt that they were not supported by the bank, with the survey revealing that many businesses, directors and owner managers were asked for personal guarantees and experienced bank employees who were not able to make decisions. 

"This seems to have hardened Gloucestershire businesses," said Edward, "as 72% of those who responded to the survey felt that they would not need more support from the bank next year than they have had this year. This would appear to indicate that through necessity businesses have introduced measures to allow for their continued survival, without calling on support from banks that have been reluctant to lend to anyone except the most successful business models.  Despite this however, only 28% of respondents said that they would consider changing banks and only a quarter of those said that this was due to the bank’s conduct."

The survey also revealed that 28% of businesses surveyed intended to investigate achieving further growth in the next year in foreign markets. Tim Walker, Commercial Partner at Rickerbys LLP said, "Many businesses are talking to us now about strategic alliances and changing distribution arrangements. It seems to me that the survey has just revealed what we already knew, which is that the County has a vibrant and imaginative business community who are willing to think laterally in times of adversity."

Edward Davies added, "The current weakness of sterling means that export markets should be ripe to develop. My view is that businesses should be looking to exploit this. If businesses aren't already exporting there are some good organisations that can help them identify and access new markets."

The survey results come as the second installment, the first part being published in February and focusing on employment.  Edward Davies said, "The survey has been a great success and we are very grateful to all of those businesses who took the time to participate."

For further details please contact Edward Davies, Corporate Partner at Rickerbys LLP on 01242 224422 or email edward.davies@rickerbys.com.