Entrepreneurs look to international markets for business growth

MORE than a third of entrepreneurs in Yorkshire are expecting to see an increase in revenue from global markets beyond Europe in the next 12 months.

Some 34% of respondents to Ernst & Young’s major new survey of entrepreneurs say they expect to see a significant increase or an increase in global busi-ness.  And this is despite the fact only 14% of those who took the survey said they currently do more than 10% of their business in markets other than the UK and Europe.

The findings will be welcomed by business leaders and advisers who believe that export business is crucial to the UK’s economic recovery. More than 50% of those entrepreneurs who took the survey said they currently derive 87% of their business revenues from the UK so there is still a lot to do in terms of reconfiguring businesses to have a more international outlook.

TheBusinessDesk.com has teamed up with Ernst & Young to promote and celebrate the entrepreneurial spirit of the region and share insights into the opportunities and challenges entrepreneurs are facing. We will be reporting on the find-ings all week and all stories relating to the survey can be found on a special supplement here.

More than 250 UK entrepreneurs completed the survey, which explores views on a wide range of topics including international trade, the economic environment, employment opportunities and innovation.

Attitudes to Europe are especially interesting. Some 18% of respondents said they currently derive more than 10% of their business revenues from Europe and 35% said they expect to see an increase in European revenue over the next 12 months.

Yet only 25% of respondents say they see the UK’s continued membership of the European Union as beneficial.

Commenting on the survey’s findings, Stuart Watson, Ernst & Young’s UK & Yorkshire Entrepreneur of the Year Leader, said: “In a flat UK economy, business leaders must look beyond their borders for significant growth. Companies are increasingly using mergers and acquisitions to access, consolidate or extend their ability to benefit from growth in rapid growth markets (RGMs), especially given a stalled European economy.

“RGMs, which include 25 countries such as Turkey, Indonesia, India, and South Africa, are set to collectively grow to 5.4% in 2013 and then 6.4% in 2014, according to a recent report from Ernst & Young.

“After a slight dip last year, RGMs have now started to regain momentum, demonstrating their resilience. These countries are becoming the locomotives of a global recovery in which developed economies will find it hard to keep pace.”

Views on the European Union

Respondents said:

“All we need is one set of rules, and one way of enacting them.”

“Employee legislation is stifling.”

“It is not necessarily the EU that is a problem but how the UK interprets the same rules with vastly differing outcomes to others.”

“The key impact for me is on labour mobility, since one of my potential busi-ness partners is based overseas.”

“When trading with clients that have multiple offices across EU countries, being a member of the EU make the administrative process a lot simpler.”

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