BELFAST BRIEFING:Businesses that are adapting and preparing for the future are more likely to stay afloat, writes FRANCESS McDONNELL

HE MAY not be an economic expert but perhaps Belfast-born Van Morrison’s advice to “keep on moving on up to the higher ground” would be worth taking on board as the recession allegedly recedes in the North.

Research from business advisers PricewaterhouseCoopers (PwC) suggests a third of Northern Ireland companies are operating in survival mode.

Although there are some indictors that the downturn is slowing, the signs are that companies in the North are still uncertain about the future. The PwC research found that 40 per cent of companies surveyed last month had cut jobs in the past year, with 60 per cent having no plans to increase employment levels next year.

PwC managing partner Hugh Crossey believes the attitudes of local business leaders will determine how quickly Northern Ireland recovers from the recession.

“The private sector remains focused on survival and consolidation, and kickstarting the economy must include a boost to confidence and investment intentions,” he says.

Crossey believes that, despite the dramatic slowdown and rapid unemployment growth, the North is still in a much better situation than it was 10 years ago.

“We still have 107,000 more jobs than in 1998 and nearly 90,000 of these are in private services, many in retail, hospitality and call-centres,” he says.

But the reality for the majority of people is that they appear to be sinking further into the deep waters of the downturn.

Hard figures may argue differently but the general impression is that everyone in the North is holding out for an economic lifeboat. People are worried about job security, house prices and the fraught political scene. This translates into a general nervousness which is paralysing the local economy and preventing any genuine recovery from floating.

Against this backdrop, it is easy to see why confidence is thin on the ground. This is why companies and organisations that can inspire people to see beyond the current difficulties are so important to the economic fabric.

A shining example is a modest charitable organisation in a Co Tyrone town which is helping to transform the lives of women.

The First Steps Women’s Centre in Dungannon was set up 11 years ago, ostensibly to provide training and education for women in the south Tyrone area.

It continues to deliver an extensive range of courses for women who have few formal qualifications. In the past four years, more than 853 women have registered or participated in its programmes.

The centre has also delivered an opportunity for women to transform their perspective on life and, in turn, make an invaluable contribution to their community and the local economy. Not only does the centre help women achieve recognisable qualifications, but it inspires them to have confidence in themselves and, in many cases, this leads to work.

The centre is an example of a community-led initiative which is committed to improving the quality of life of local people. It is funded by the North’s Department for Employment and Learning and the Department for Social Development.

Many of the women who have participated in First Step’s programmes have become not only firm friends but also ambassadors for the organisation.

They help to promote its services and in turn have created a network of supporters. This has ensured that the net benefits of the centre are enjoyed by the entire community – male and female, young and old.

It is not only community-based organisations in the North which are helping to turn the tide against the recession.

According to Francis Martin, the new vice-president of the Northern Ireland Chamber of Commerce, there are companies that are successfully trading through the recession and helping to inspire confidence.

Martin is managing director of Belfast-based accountants BDO, which recently analysed why some companies are flourishing in the North regardless of the downturn.

He says the company witnessed first hand the difficulties experienced by many local firms over the past 18 months.

It identified certain “traits” displayed by companies that had succeeded where others had failed.

“What emerged was a pattern whereby businesses across a wide range of sectors and industries had undertaken similar processes, internally and externally, and were focused on adapting, changing and preparing for the future.

“By acting quickly and strategically, these businesses have secured their future.”

Northern Ireland now needs to take at least two small steps to move “up to the higher ground” when it comes to the economy.

Firstly, it must ensure that all companies embrace these winning traits and, secondly, organisations such as the First Steps Women’s Centre must be allowed to continue to flourish.