Diversity is our strength in the West Midlands
Just as diversification can benefit a business by spreading its risks, so the same is true of a region’s economy.
The UK’s economic reliance on the financial sector, not to mention our unique dependence on house prices to prop up a whole raft of related consumer-facing businesses, has meant Britain is set to fare a lot worse in this recession than many of our friends overseas.
Trying to now diversify into new sectors – and green technology stands out given the UK has just signed into legislation the world-leading Climate Change Bill – seems a bit like closing the stable door once the horse has bolted.
But further down the line when things pick up, whether you believe the magic moment will actually materialise in 2010 or not, it’s clear we need different industries to take us in a new direction.
And not only different industries, make that different kinds of people too.
Maybe our over-reliance on a few sectors has something to do with the fact that the people leading those businesses tend to come from the same background – generally middle-aged white males – all embracing the same bonus-driven debt-laden culture.
So it makes sense to start looking elsewhere now for those businesses who could represent a different direction once the recovery comes.
Dr Sarindar Singh Sahota, vice-chairman of the West Midlands Regional Assembly, recently pointed to the West Midlands Asian business community as a vital tool to help the region recover from recession.
He said: “They are also the least affected in this recession because Asian businesses tend to be less debt-ridden and more likely to get out of this recession.”
Listening to his comments, they sound strangely familiar to those applied to another group.
Women’s Enterprise Centre of Expertise director Jackie Brierton recently said women business owners “usually do not take on so much in the way of debt so they are not suffering so much from the banks withdrawing.”
“They are also more cautious so, when something like this happens, women-run business are much more able to be able to withstand it.
‘‘Also, a lot of women are able to share problems and network more effectively.”
I don’t know if “lucky” is the right word to use as we face the worst economic climate in a generation, but at least here in the West Midlands our young diverse population can give us some hope for a more diversified economy in the long term.
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