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Exports pose massive challenge to SMEs say CBI

New research indicating that UK mid-sized businesses are lagging behind Germany and France when it comes to exporting outside of the EU.

According to a study undertaken by GE Capital, jst 17 per cent of UK MSB revenues come from outside the EU, which is lower than in Germany, France or Italy. Only 15 per cent of UK MSBs have grown their revenues from China in the last 5 years, compared with 25 per cent in France and 23 per cent in Germany and Italy. This must change.“

While the CBI recognise the recent emphasis UK Trade & Investment has placed on helping SMEs enter the export industry, they still have some concerns, Speaking alongside Vince Cable at the Leading from the Middle summit, the UK’s first-ever major business convention on the importance of UK mid-market companies to the economy, Katja Hall, CBI Chief Policy Director, will say:“The CBI and UKTI recently led a joint delegation of 30 MSBs on a trade mission to Turkey, the first designed for this size of business.

“We worked closely with UKTI to develop a programme that really made sense for these firms. Companies on the delegation came home with new commercial opportunities and the contacts they need to help them grow overseas.”

The UK mid-market has the second-highest proportion of ‘gazelles’ - or ‘growth champions’ - when compared to the mid-market in Germany, France and Italy, but also the second-highest proportion of flat and declining companies.

But what GE Capital’s research also found was that UK MSBs’ principle focus is simply staying in business. Survival rather than growth is the defining strategy of 26 per cent of the companies surveyed, more than in France and Italy and almost double that of German companies.

She will go on to say: “MSBs and exports are intrinsically linked, and we welcome the government’s moves to bolster the support they are offering to help MSBs looking expand overseas. It’s critical, because MSBs are our innovators and fundamental components of larger exporters’ supply chains.”

In the CBI Future Champions report, which was published last October, it was found that if the gap narrows so there are more gazelles alongside slow growing firms reaching a steady expansion rate rather than stagnating, SMEs could add £20 billion to the economy by 2020.

“But we won’t achieve it if we carry on as we are. The neglected middle must become the nurtured middle.” She will add.

This was posted in Bdaily's Members' News section by Ruth Mitchell .