Small businesses look to China, India and Africa
Small businesses look to China, India and AfricaNew Delhi, Apr 12 (KNN) The on-going eurozone crisis has had a major impact on small businesses in Britain. Having lost faith in UK and European economies, they have chosen to seek greener pastures further away in emerging economies of China, Brazil, India and Africa, said a Daily Mail report.
“Small and medium-sized enterprises are either forging international relationships themselves or using government services to reach new markets. Wise businesses are looking at the wider global outlook as they see little hope for the eurozone crisis to deflate over the coming year,” a survey of 660 businesses by Jonathan Rees of Western Business Solutions said.
While two-thirds of small businesses said they felt positive about international trade conditions, more than 40 per cent of those already trading into emerging markets said they expected cross-border sales to rise within the next six to 12 months.
Significantly, Europe appears to hold a bleak future for small and medium-sizes firms with as many as 83 per cent seeing no light at the end of the tunnel. They believe that the eurozone crisis will continue, even worsen over the next year.
It is not just about the austerity measures that have been implemented by the European Governments. Concerns have to do with the general instability in Europe which they think will impact UK as well.
Further, sterling has fluctuated against both the dollar and the euro by 8.3 per cent and 7.4 per cent respectively. This has been a major cause for alarm.
As far as UK economy is concerns, the small and medium sized firms have conflicting views. While 55 per cent are confident, 45 per cent have little faith as the survey suggests.
Rees is of the opinion that their concerns about currency instability are justified. “While a weaker pound could help exporters, it will also have an impact on production and import costs,” he said.
However, even though there is a lack of optimism over the eurozone crisis, it continues to be an important market for UK exporter. Europe is the largest buyer of British goods.
Among the firms surveyed, 80 per cent believe that UK should stay in the European Union. (KNN)