Firms that can adapt to new markets will survive storm

Inevitably a major downturn causes business casualties, including some substantial companies. Those who profit from the recovery are those who think creatively and invest where and when they can in laying the foundations for their businesses to take off when the economic climate improves.

This is a time of year when we all think about where we're heading and what the future holds for us, our family and our friends. Throughout the difficulties of the past eighteen months, employers generally have worked hard to hold on to their people, recognising that in a competitive climate productive staff are their greatest asset. That hasn't always been possible, and inevitably some trimming of costs has been necessary in most organisations. For anyone who has lost their job, it's tough. But many have been able to turn that around, picking up a new career direction or even starting their own business. Many of those in both camps have been assisted by Edinburgh Chamber of Commerce.

The great challenges for the new year for business lie with steadying the ship and building the platform for growth, whilst winning new business.

Business sustainability requires companies to think and act differently. You can't get by doing what you have always done the same as you have always done it. There are always ways we can enter new markets, or be innovative about how our products and services are constituted. One technical equipment supplier found their capital sales collapsing - but recovered when they changed the business model to leasing and rental. The fast changing pace of the digital economy has caused many to rethink their sales strategies.

The biggest opportunity is the global market. Whilst it is true that no one market has been immune from the economic meltdown, and our own recovery seems painfully slow, there are grounds for optimism. Some of the fastest moving economies have growth slowed from 20 per cent per annum to 8 per cent. That's still a hefty opportunity.

Scottish Chambers International, through which we manage support for initial and growing exporters, has had an extremely successful start-up year and in collaboration with Scottish Enterprise and SDI has set new standards of excellence through the Intelligent Exporter programme, singled out for praise in the Scottish Government's draft budget, and central to why British Chambers of Commerce voted our International Trade programme "best in the UK".

In 2011 we'll significantly grow the number of companies benefiting from that programme. Those in positions of strategic management responsibility must develop a long term view of not whether they can grow their companies, but how they can.

We have been working hard with a wide range of partners to enhance the Capital City's development programme. People have talked a lot about hits to the financial services sector, but we have seen growth, with companies like Virgin and Tesco putting substantial investment into Edinburgh, because they know the right kind of staff want to be here.

Survey after survey shows Edinburgh at the top of or high up in the lists for preferred places to do business. But this kind of kudos isn't a right. It has to be held.

People live and work here for a wide range of reasons, but the following attractions keep cropping up: Edinburgh has fine architecture and a great location; its cultural scene is second to none - whatever your preferred level of arts and entertainment; it has a cosmopolitan population (60 per cent of residents were born elsewhere); fantastic eateries; the educational standard of the workforce is second only to Oxford and Cambridge which have roughly a quarter of its population; it has good schools; good health services; and four universities and three colleges of further education.

Being the seat of government means we also need to keep the public sector effective, but with a tight rein on expenditure. That can only be achieved through genuine ongoing reform. Another thing that government can contribute is creating the right climate for business to drive the recovery. Punitive business taxation and escalating non-domestic rates (capped by a ludicrous 60m levy on retailers) will strangle the golden goose. The Chambers' burdens' barometer shows the costs of additional red tape since 1998 as nearly 90bn. These are all misguided policies which can be easily changed to enable the private and public sector to work together to boost the income of individuals, businesses and ultimately the state sector.

We also know there's a need for improvements. We must reinvigorate the construction industry to remedy the under-supply of affordable housing. We need more new office buildings, better transport links, and improved "public realm" that all-encompassing feelgood factor caused by great streetscapes, public art and signage. For that we need to attract inward investment, so we also need a planning process that assists the city's improvement. Not so developers can ride roughshod over anyone else's interests, but so investment is attracted because people will know design standards are high, testing is rigorous, but that process also moves quickly enough to attract those with the power to back change for the better.

Many good people are working hard to achieve these goals. Edinburgh Chamber of Commerce will continue to be part of that team and support this vision.

• Ron Hewitt is chief executive of Edinburgh Chamber of Commerce

BRITONS EXPECT TO HAVE LESS MONEY

The majority of Britons are pessimistic about the year ahead and harbour less hope than at any time in the last 18 months.

Two-thirds predict the economy will fare badly in 2011, while the same proportion expect to have less money to spend themselves, according to the Populus survey. A worrying 38 per cent fear they will struggle to pay all their bills on time and 21 per cent say they will find it difficult to pay the mortgage.

The most pessimistic people are women and those aged between 35 and 54. But the poll found that most are not yet ready to cut back on their outgoings, with the average spend on Christmas presents soaring by nearly a quarter to 395.