WITH some signs of optimism on the economic horizon there has never been a more important time for companies to call on the expertise of an experienced operator. In the run up to the 2010 North East Business Executive of the Year Awards, Peter McCusker reports on the role of the non-executive director.
IT IS a widely accepted fact in the business world that more companies fail coming out of a recession than going into one.
James Ramsbotham, chief executive of the North East Chamber of Commerce (NECC), which is one of the sponsors of this year’s North East Business Executive of the Year Awards, believes the current economic climate calls for the steady hand of an experienced non-executive director.
He said: “More businesses fail on the upturn from a recession than on the downturn.
“Businesses on the whole tend to use less working capital when they are getting smaller, so companies need to understand how to manage their growth as we come out of recession.
“These are conditions we have not witnessed for almost 20 years and the steady hand of an experienced executive can be invaluable.”
Now in their 27th year, the prestigious North East Business Executive of the Year Awards – which are run by The Journal in association with the Evening Gazette on Teesside – honour the region’s top business people.
The Non-Executive of the Year Award is the newest presented in the competition and 2010 is only the third time it has been given.
Previous winners – David Clipsham in 2008 and John Josephs in 2009 – were recognised for the extensive experience and expertise in businesses across many sectors.
Mr Josephs said: “A good non-executive director needs a broad base of experience especially in the financial arena.
“In the current economic climate many businesses who have survived the downturn will be breathing a sigh of relief, but may find they do not have the working capital to fund expansion.
“At times like this an experienced head, someone who has been through a recession before, can prove invaluable.
“There are still difficult times ahead, and we have never witnessed a situation like we have with the banks right now. ”
