FAMILY FIRMS IN WEST MIDLANDS MORE CONCERNED

ABOUT ECONOMIC OUTLOOK THAN REST OF THE UK

4 September 2019, London: Owners of family businesses in the West Midlands are more
uncertain about the state of the UK’s economic outlook than firms across the country,
according to a study (1) conducted by specialist lender, Cynergy Bank.

Cynergy Bank spoke to SMEs across the UK, and found that four in ten family business
owners in the region were more uncertain about the current economic outlook in
comparison to a third of family firms across the country.

West Midlands’ family firms also reported higher levels of anxiety about attracting and
retaining staff, with one in three saying it was a big challenge compared with one in five
family businesses across the UK. They also expressed challenges with obtaining finance in
order to run their businesses.

The study, however, also showed that family firms in the region were more confident than
others across the UK in adapting to the digital age and staying relevant in a fast changing
environment.

James Herron, Director Midlands, Cynergy Bank, said: “At a time when businesses across
the UK are facing strong headwinds from economic uncertainty, it’s clear the family-run
businesses in the West Midlands in particular are feeling the pinch. This appears to also
be affecting their ability to attract and retain talent as well as obtaining finance.

“Access to finance is a key business issue and it’s important to understand the unique set
of challenges a family business may face when it comes to this issue. For example, there
are often no clear demarcations between business finance, personal finance and family
finance for business leaders of these companies. That’s why we are ensuring that our
seamless and blended offering for business leaders of family-run firms meet their unique
needs.

“Family-run firms are at the heart of many communities around the UK and should be
recognised for the significant contribution they make to the economy here in the West
Midlands.

“It is particularly encouraging to see that our family firms are ahead of the curve when it
comes to adapting to technological developments. Embracing resilience in an ever-
changing business environment is exactly what will put them in a strong position to
weather the uncertain times ahead.”

Which, if any, of the following represents the single biggest challenge for you
and your business?
West Mids UK Family Non-family
Total Family firms firms firms
The uncertainty of the
current economic outlook 30% 40% 32% 28%
Managing cashflow 23% 20% 23% 26%
Adapting to the digital age
and staying relevant in a
fast changing environment 17% 15% 22% 13%
Attracting and retaining
staff 16% 30% 22% 15%

Document Classification: Internal

 Access to finance so I can
grow my business 13% 15% 15% 11%
Other 5% 3% 4% 4%
N/A - I don't face any
challenges with my business 21% 3% 14% 23%

Ends

For more information contact

Steve Marinker, 07779 031 936

Steve.marinker@powerscourt-group.com
Or

Chloe Retief, 020 7250 1446

Chloe.retief@powerscourt-group.com

1. Cynergy Bank Family Business Perspectives Report conducted by Opinium Research among 1008 SMEs. June/July
2019. A family business is defined as Small medium enterprise (SME) which is run by two or more members of the
same family or was started by relatives of the current owner. Research conducted among 1008 SMEs, of which 412
are run by two or more members of the same family and a further 131 involve other family members in non-
management roles.

About Cynergy Bank

Cynergy Bank is a specialist bank established in 2018 by entrepreneurs to serve the needs
of business owners, property entrepreneurs and family businesses. At Cynergy Bank we
recognise that our customers’ personal and professional lives often overlap. Our mission
is to help empower them to achieve their ambitions by serving all their interdependent
banking needs.

We provide a comprehensive range of products and services to meet the property finance,
business and commercial banking, private banking and personal savings needs of our
customers. With a track record in the UK dating back to 1955, we are committed to putting
enduring relationships with our customers at the heart of what we do.

Cynergy Bank is a UK bank, authorised by the Prudential Regulation Authority and

regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Eligible deposits are protected up to a total of £85,000 by the UK Financial Services
Compensation Scheme. Cynergy Bank was established following the acquisition of Bank of
Cyprus UK by Cynergy Capital Limited in 2018.

For more information on Cynergy Bank visit www.cynergybank.co.uk

Document Classification: Internal