Partner Article

SMEs must take bold action to grow

Small and medium businesses need to take bold action to grow, as the current pace of activity is too slow for a sustainable recovery, according to the British Chamber of Commerce.

A recent survey has indicated that while the UK economy is weak, businesses are growing. Despite this however, director general John Longworth is now calling for the creation of a national business bank and more spending on infrastructure.

There has been a small rise in exporting activity in the three months to the end of June, although domestic activity showed little net overall change.

Employment also showed a mixed picture, as the balance of manufacturing firms hiring stayed at the same as the last quarter at 16%, while the balance of service sector firms that had taken on staff rose six points to 10%.

Many manufacturers expect to take on less staff over the next quarter, but service sector firms anticipate that they will need to recruit more workers.

Mr Longworth said: “While domestic growth continues to bump along the bottom, the silver lining is an increase in firms looking for export opportunities, and in many cases, with countries outside Europe.

“Growth cannot wait. The government must take an imaginative and brave approach to stimulating the economy and helping businesses thrive.

“Headline-grabbing U-turns on fuel duty are not enough to get the economy back on track.”

By encouraging more public investment in rail, air, maritime, energy and digital networks, the Government could attract further private finance into much needed projects.

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