The CBI has urged the government to ramp up its support for small businesses looking to export to developing countries.
At the Confederation’s annual conference, director-general John Cridland said that Britain’s ‘gazelles’ – smaller firms with the potential for rapid growth – can spearhead Britain’s economic recovery if they are encouraged to trade overseas.
Across mainland Europe, one in four small-to-medium sized companies is an active exporter. The CBI believes Britain should strive to achieve a similar average by 2020.
In terms of specific target markets, the CBI says British companies should divert their attention from the Eurozone, which is currently mired in debt and uncertainty, towards emerging economies such Brazil, Russia, Mexico and Indonesia.
The Confederation claims that, if Britain increases its focus on these countries, it can add £20bn to the economy over the next decade.
Cridland told conference delegates that the government should aim to assist rather than orchestrate this process. He said:
“If you are trying to motivate people from an existing path of growth to a new path of growth, the role of government is to signal and facilitate. It is not government’s role to make it happen.”
Prime minister David Cameron, also speaking at the conference, appeared to echo Cridland’s sentiments. He added:
“We need a fundamental rebalancing of the economy: more investment, more exports, a broader base to an economic future.
“You have asked us to help drive exports, to encourage British-based businesses to find the confidence to invest and reach out to the world. And that is what we are doing.”