Recession 'over' but cash management challenges remain

Saying the recession is over is self delusion on a grand scale by the government using it's usual smoke and mirrors approach to statistics.

It's like borrowing to buy a house, and saying you are out of debt after making the first repayment.

We will not be out of the recession until we are all the way out - back where we were before the recession started, and that is going to take a very long time.

If the definition of a recession is 2 consecutive quarters with a decline in GDP, why does it take only one quarter of negligible growth for us deemed to be out of recession?

Having said that I think it is fair to say that things are in better shape than a year ago, although still fragile.  

I don't think coming out of recession is a matter of going back to where we started, it is more a need to have  growth supported by sound practices.   Prior to the recession, the economy was being propped up by excessive credit often lent with insufficient due diligence and supported by inflated valuations.

Clearly in the recession some businesses have had to look for alternative sources of finance.  However I was very interested to see the comment about alternative structures becoming a more of a norm in the future.    Public markets are mentioned in the article, but these are more easily accessible to larger businesses.   I would be interested to hear about the ACT's views in regard to small business finance and the type of structures that could become the norm.

Regards

David Lewis

www.camroseconsulting.co.uk