I received an email today from a financier friend of mine, whose ear is very close to the ground – particularly in the world of distressed business & corporate recovery…
Word on the street is that a wall of debt is due to collapse and an avalanche of activity in the insolvency sector is upon us. Corporate finance is seemingly impossible at the moment from any source, distress funders are up to their eyes in deals, banks aren’t suporting and HMRCE is starting to tighten previously generous ‘Time to Pay’ settlements.
Meanwhile over in the Enterprise Sector support for start ups has been withdrawn in favour of the ‘growth’ businesses capable of creating jobs in the future. Meantime, public sector cuts throw more people on to the unemployment pile.
Unions bay for blood, strikes abound and everywhere people are looking for someone to blame.
Much as I am a supporter of the Conservative Party I can’t help but feel that this aggressive approach is a form of political points scoring. The old corporate trick of blaming all the problems on your ‘inept predecessor’ – so the spotlight is off you, while you buy valuable breathing space trying to figure out how to get the job done.
In the meantime 30 ‘leading businessmen’ have been choraled to support what the Government is doing. (All it seems highly paid employees of publically listed plcs)
I fear deeply for what is going on.
My own experience is that the majority of small businesses are now living ‘on the edge’. Payments have slowed, sales are falling and everyone is holding on to what little money they have got. Thousands of small businesses are literally treading a daily tightrope.
We have to support these businesses.
Not an artifical crutch to support failing businesses, but rather the encouragement to keep going on.
You see, the future of the economy is not in providing the security of ’employment’. It’s about empowering as many people as possible to step out of the ‘blame’ culture and start taking control of their own lives.
If we don’t encourage this enterprise culture, and we starve support to only the ‘growth’ businesses (and how on earth can you tell which ones those are?), we will end up with the masses baying for blood and someone to blame.
Unless we’re careful I predict that a Revolution is coming…