Monday, November 21, 2011

Why now is the time for Britain to start exporting

While that paralysis of uncertainty remains the yawning gap of imports over exports will just go on getting wider. It's a worrying liability for us all.

But it also represents an opportunity, assuming you're brave enough to work up some enthusiasm in the current environment. And this morning the Prime Minister will address an audience of advisers, bankers and other intermediaries, whose clients are small businesses, on the role the Government wants them to play in stimulating the UK's trade.

David Cameron is dubbing it the national challenge, to close the trade gap and revive the economy through exports.

But according to the Institute of Chartered Accountants only 7pc of small companies who do not currently export are planning to start selling goods or services internationally over the next two years.

The Prime Minister's appearance at the Exporting for Growth conference this morning is aimed at persuading those that advise small companies to help them understand overseas markets and the help on offer from Government. He's also brokered a deal with banks, helped by Lord Heseltine, to unlock �500m of new funding for small businesses.

But while exporting is not without risks, it can lead to significant improvements to the way companies are run. Lord Green, minister for trade and investment, reckons exporters account for the majority of UK productivity and firms that take on the export challenge become about a third more efficient.

The Institute of Chartered Accountants reckons that exporters are more likely than non-exporters to expect turnover and profits growth over the next 12 months. And perhaps that will be the biggest motivation for small businesses and entrepreneurs. If there's not going to be much growth here, thanks to the eurozone crisis, perhaps it really is time to go out and find it elsewhere.

damian.reece@telegraph.co.uk

Source: http://telegraph.feedsportal.com/c/32726/f/568312/s/19f561a6/l/0L0Stelegraph0O0Cfinance0Ccomment0Cdamianreece0C8880A260A0CWhy0Enow0Eis0Ethe0Etime0Efor0EBritain0Eto0Estart0Eexporting0Bhtml/story01.htm

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