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ICAEW says UK MSBs aiming for domestic growth
Accountancy News |
18/07/2012
Medium-sized businesses (MSBs) still see the UK as their primary market for growth, despite the double-dip recession and unsettled economic outlook.
This is the main finding of a new study conducted by the Institute of Chartered Accountants in England and Wales (ICAEW), which looked at MSB business plans for the coming two years.
ICAEW found that many are focused on realising their potential in their home market, with just two-thirds planning to export between now and 2014.
Many are optimistic with 76 per cent expecting turnover growth compared to only five per cent expecting reduced turnover.
However much of this growth is expected to come from gradual organic growth and concentrating on core markets.
Over half (55 per cent) of MSBs are described as ‘sustained growers’, experiencing increased turnover growth in the past three years and expecting growth over the next two.
Nearly two-thirds (64 per cent) believe future growth will come from gradual organic growth, with 47 per cent relying on this route solely.
ICAEW chief executive Michael Izza said the MSB sector is "important to economic growth and recovery".
"Whilst it is encouraging that MSBs see potential in the UK market, those that are not trading overseas need to realise the opportunities it could potentially bring to their business," he stated.
Business minister Mark Prisk added that there is "huge potential" in the UK's mid-sized business sector.
"They account for around one fifth of the private sector and are crucial to our plans for growth," he stated.
"That’s why one of the main elements of our mid-sized businesses campaign has been getting these companies to aspire to, and start exporting."
Posted by Jon Aspinell
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