Lack of finance to support exports ‘shackling firms’ international ambitions’

The joint study from the Confederation of British Industry (CBI) and accountancy firm BDO urges the Government and finance providers to get behind the international ambitions of medium-sized businesses (MSBs) in the region, which, the study says, are being held back by a lack of access to finance.

CBI research has shown that MSBs could be worth an additional £20bn to the economy if only the UK can unlock this growth.

The CBI and BDO warn that a lack of access to export finance could hurt the economic recovery if financial providers fail to plug the gap.

Only 52 small and medium-sized firms across the UK have received direct assistance from the UK Export Finance (UKEF) scheme 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.

CBI chief policy director Katja Hall said: “There is a disturbing gap in export finance that is shackling the international ambitions of medium-sized businesses across Yorkshire and could damage the local and 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 medium-sized businesses in the regions. UKEF must reach out to far more businesses on the ground.”

Despite three-quarters of MSBs expecting to generate more revenue from investment abroad in the next three years, they have little knowledge of the schemes that the Government offers.

Two-thirds of MSBs are unaware of UKEF itself, while more than two thirds of SME exporters are not aware of UK Trade and Investment, the Government department charged with helping business succeed in international markets.

BDO said MSBs needed assistance to understand their global potential.