Global red tape holding back British exports
TRADE barriers around the world are stopping small companies exporting and holding back efforts to rebalance the economy towards export-led growth, a survey has revealed today.
Just 32 per cent of small exporters sell goods or services to the fast-growing BRIC economies, compared to 73 per cent of larger firms, according to a study by the British Chambers of Commerce (BCC).
Meanwhile 88 per cent of all firms sell to the more stagnant EU countries, which offer fewer growth opportunities.
Barriers to trade are a key factor stopping small firms tapping into this growth source, the BCC believes, arguing that “smaller businesses have fewer resources to overcome these obstacles”.
The government could help by signing more free trade agreements, according to the BCC, breaking down tariffs and bureaucracy in more countries.
The group has also called on UK Trade and Investment to share practice on foreign bureaucracy to help small businesses with few resources.
“Britain has the potential to be a great exporting nation,” said BCC director general John Longworth.
“The government must work together with business to unlock the potential of Britain’s exporters, who will in turn help to drive the recovery.”
Meanwhile the All Party Parliamentary Small Business Group called for a cultural shift in attitudes towards entrepreneurship, asking the government to add enterprise education to the school curriculum and to give financial support to would-be entrepreneurs who are claiming job seekers’ allowance.
“Not only must we create the conditions to help ensure that the education and financial systems are available to supply potential entrepreneurs, but society embraces the enterprise culture whose full potential is yet to be explored is these difficult times,” said Brian Binley MP.