Clearview North December 2013 - Issue 145 | Page 72
BUSINESSNEWS
LACK OF FINANCE TO SUPPORT EXPORTS
SHACKLES INTERNATIONAL AMBITIONS
Too many medium-sized businesses are locked out from the essential sources of growth
finance and support they need to export and invest abroad, the CBI and BDO has said.
In a new joint report from the CBI and BDO, ‘Go your own way’,
the Government and private sector are urged to get behind the
international ambitions of medium-sized businesses (MSBs), which
are being held back by a lack of access to finance, as they journey from
non-exporter to global business.
CBI research has shown that MSBs could be worth an additional £20bn
to the economy if only the UK can unlock this growth, particularly at a
global level.
The CBI and BDO warn a lack of access to export finance could hurt
the economic recovery if financial providers, both private and UK Export
Finance (UKEF), fail to plug the gap. Only 52 small and medium-sized
firms received direct assistance from UKEF in the last year. The report calls
for an ambitious expansion in UKEF support which would aim to directly
assist 250 small and medium-sized businesses by 2015.
The report highlights that half of medium-sized businesses (MSBs)
see ‘exporting to new markets’ as core to their growth strategy and three
quarters (78%) of MSBs expect to generate more revenue from investment
abroad in the next three years. However, it is a matter of concern that MSBs
have little knowledge of the schemes that the Government offers and two-
thirds of MSBs are unaware of UKEF itself, while 69% of SME exporters
are not aware of UK Trade and Investment, the Government department
charged with helping business succeed in international markets.
Katja Hall, CBI Chief Policy Director, said: “There is a disturbing
gap in export finance that is shackling the international ambitions of
medium-sized businesses and could damage the UK economy’s long-term
prospects.
“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 gr ????+?q ?????? ???????????????????????????????????????????)?????????????????????????????????????????????????????????)????????????????????????????????????????????Q?????????????)???????????????????1???????M????????
??????????????????????)?????????????????????????????t)-???!??????%??????????1??????A??????