Lack of finance shackling exports says CBI
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Too many medium-sized businesses (MSBs) are locked out from the essential sources of growth finance and support they need to export and invest abroad, says a new report from the CBI and BDO.
The report, 'Go your own way', urges the government and private sector to get behind the international ambitions of MSBs, which are being held back by a lack of access to finance, as they journey from non-exporter to global business, potentially adding £20bn to the economy.
The report calls for an expansion in UKEF support which would aim to directly assist 250 small and medium-sized businesses by 2015.
The report highlights that half of MSBs see 'exporting to new markets' as core to their growth strategy while 78% expect to generate more revenue from investment abroad in the next three years.
CBI Chief Policy Director Katja Hall said: "Government support has improved, but the reality is that they have not even scratched the surface when it comes to supporting the efforts of British medium-sized businesses. UKEF must reach out to far more businesses on the ground."
BDO's Kim Hayward said the UK's global export share had fallen by nearly 50% in the last 30 years, adding, "Just over 5% of our exports are to the BRIC countries and we still export more to Ireland than to China.
