agents of growth 19
Source: ICAEW/Grant Thornton Business Confidence Monitor
But, support is needed for ’the UK’s secret success story’
Based on surveys taken at Grant Thornton’s Agents of Growth business summits, those at the helm of the UK’s MSBs are confident of growing their business in the coming year in terms of turnover, exports and employment.
However, with SMEs and corporates not performing as well, MSBs have been called the UK’s ’forgotten army’ within the UK’s economic powerbase. Grant Thornton is urging the Government to actively support the burgeoning MSB growth being shown in the South East, and particularly the Solent area.
Norman Armstrong, partner at Grant Thornton’s Southampton office, says that the South East’s 4,895 MSBs – which he terms ’the UK’s secret success story’ – now need help to continue to grow and compete against their global trade rivals.
Currently, only 29% of UK MSBs have international operations – Turkey (65%) China (55%), Germany (45%) India (43%) all have more – and UK productivity of €226,000 per employee is lower than EU countries such as Ireland (€373,000), Austria (€310,000) and France (€273,000).
Armstrong stresses that the Government and leaders of mid-sized businesses must work together.
“Grant Thornton has made a series of growth recommendations to the Government and MSB leaders, including measures such as tailored support for medium-sized businesses (as distinct from their small and large counterparts), further work to tackle the skills shortage and boost apprenticeships, and recommendations
THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – MAY 2014
to increase access to finance for medium-sized companies.
“The UK’s mid-market is an often neglected segment of the market, poorly defined and lumped together with SMEs or large corporates. It’s often the ’forgotten middle’. Yet, when you look at the segment in relation to its larger and smaller counterparts, its importance in driving UK economic recovery is crystal clear.
“The shape and scale of these businesses meant they were able to navigate the economic storm of recent years better than the rest of the market, and have made the most of the few growth opportunities that were out there.
“Impressively, they’ve also been doing so with relatively limited government or peer support, and with little recognition of their efforts.“
John Cridland CBE, director-general, CBI supports Grant Thornton’s view.
He said: “The dynamo of growth is mid-sized businesses. If we are to achieve our aim of growing the economy, the CBI recognises that we need to focus on this segment of business.
“The biggest barriers for UK MSBs are actually appetite and strategy. They have got to want to grow and they have got to get the partners to help them grow. We are arranging MSB export missions and running M-clubs around the country so that the mid-market is no longer the forgotten army. And along with Grant Thornton, we hope to persuade government to focus on MSB issues.“
Case study: Typical MSB growth
Griffon Hoverwork, based in Southampton, designs and manufactures world-class hovercrafts, used for everything from search and rescue to passenger ferry operations.
Business has trebled since 2009 through overseas expansion and a merger with Bland Group in 2008. It continues to focus on overseas markets and investment in its people. Last year the company took on a record 15 apprentices in one month.
“Griffon Hoverwork’s success is based on a relentless focus on continual development; providing a proven, capable range of designs; and a commitment to providing a complete service solution,“ said managing director Adrian Went.
Details: www.
grant-thornton.co.uk
www.businessmag.co.uk
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