After weathering the recession, recent data suggests the British economy is finally mounting a sustained recovery.
While GDP figures for the first quarter of 2014 were just shy of analysts' expectations, a breakdown of the UK's economic expansion provides grounds for optimism.
Overseas demand will play an important role in delivering a balanced economic recovery through encouraging UK exports. While there have been some encouraging signs, there remains room for improvement.
On the positive side, trade with non-EU countries has risen 29% since 2009, helping to significantly boost export levels over the last 12 months and offsetting the weakness we've seen in EU markets closer to home.
In particular, manufacturing and construction have contributed more strongly to GDP than earlier estimates indicated, expanding 1.5% in the first quarter, up from the previous estimate of 1.4% growth. It is clear it is not just the large manufacturers that are supporting this recovery.
Manufacturing in the UK today is no longer simply about "bashing metal" or even precision engineering; it covers a wide range of other sectors such as food and drink production, digital technologies and craft work, to which a whole raft of small businesses contribute.
Many will be at the heart of the supply chain, with the majority being small businesses providing valuable services behind the manufacturing sector's revival.
The Federation of Small Businesses (FSB) has long believed that these small firms hold the key to growth in the UK.
If we are to rise to the challenge, we need to ensure that this community receives as much support as big business – especially when it comes to realising their exporting ambitions. We will be releasing the findings of our latest members' survey at the FSB's national conference on Thursday.
Our research has identified two major obstacles holding small firms back: an inability to find their first overseas customer and a prioritisation of domestic markets over foreign ones.
Our research found that more than a quarter of small businesses in the UK are frustrated in their attempts to identify customers overseas, describing this failure as the biggest barrier to international growth.
The importance of making these connections cannot be understated. Events such as the government-backed International Festival for Business allow smaller firms to make connections at events usually reserved for larger companies – something we need to see more of, both here and in overseas markets.
It opens British companies to new markets and new partners, assembling politicians and business leaders gathering in Liverpool this summer.
Comprising more than 300 events, IFB 2014 is a worldwide expo for business that will celebrate the richness of UK industry, promising to attract upwards of £100m worth of direct inward investment.
Crucially, it will also increase small businesses' direct engagement with growing international markets. But FSB research found the problem to be two-fold.
While it's clear the government needs to do what it can to promote the interests of small firms, there is a pressing need from within the small business community to start thinking more boldly about what they can achieve by looking abroad.
Anyone who works closely with small firms would tell you that the enthusiasm and drive of the UK's small and micro business leaders matches that of any CEO from a large corporation.
But there seems to be an ambition gap when it comes to thinking internationally that UK firms will need to overcome if they are going to scale up.
With nearly three quarters of small firms not exporting, it is clear that our small firms need to be more open-minded about the potential of their products or services, and recognise that there's appetite for what they sell beyond the UK.
What needs to happen? We need to provide small businesses with the skills, know-how and connections to make the step up. And we need to get better at encouraging small businesses to think globally.
That applies especially to those starting up, where we need to encourage that ambition from the off. Instilling that kind of mentality will see the UK take a lead in exports.
The truth is that if it sells in the UK, it there is a good chance it will sell overseas. Our islands boast some 4.9 million small businesses, employing around two-thirds of the private sector workforce.
They represent Britain's greatest advantage – an army of innovators that are ambitious and keen to grow. These are partners any business – British or not – would welcome working with.
But if we are to tackle the barriers to growth, we must focus on the key player in the economic fightback – our small business community. It's time to export the idea that the UK is open for business.
theguardian.com
While GDP figures for the first quarter of 2014 were just shy of analysts' expectations, a breakdown of the UK's economic expansion provides grounds for optimism.
Overseas demand will play an important role in delivering a balanced economic recovery through encouraging UK exports. While there have been some encouraging signs, there remains room for improvement.
On the positive side, trade with non-EU countries has risen 29% since 2009, helping to significantly boost export levels over the last 12 months and offsetting the weakness we've seen in EU markets closer to home.
In particular, manufacturing and construction have contributed more strongly to GDP than earlier estimates indicated, expanding 1.5% in the first quarter, up from the previous estimate of 1.4% growth. It is clear it is not just the large manufacturers that are supporting this recovery.
Manufacturing in the UK today is no longer simply about "bashing metal" or even precision engineering; it covers a wide range of other sectors such as food and drink production, digital technologies and craft work, to which a whole raft of small businesses contribute.
Many will be at the heart of the supply chain, with the majority being small businesses providing valuable services behind the manufacturing sector's revival.
The Federation of Small Businesses (FSB) has long believed that these small firms hold the key to growth in the UK.
If we are to rise to the challenge, we need to ensure that this community receives as much support as big business – especially when it comes to realising their exporting ambitions. We will be releasing the findings of our latest members' survey at the FSB's national conference on Thursday.
Our research has identified two major obstacles holding small firms back: an inability to find their first overseas customer and a prioritisation of domestic markets over foreign ones.
Our research found that more than a quarter of small businesses in the UK are frustrated in their attempts to identify customers overseas, describing this failure as the biggest barrier to international growth.
The importance of making these connections cannot be understated. Events such as the government-backed International Festival for Business allow smaller firms to make connections at events usually reserved for larger companies – something we need to see more of, both here and in overseas markets.
It opens British companies to new markets and new partners, assembling politicians and business leaders gathering in Liverpool this summer.
Comprising more than 300 events, IFB 2014 is a worldwide expo for business that will celebrate the richness of UK industry, promising to attract upwards of £100m worth of direct inward investment.
Crucially, it will also increase small businesses' direct engagement with growing international markets. But FSB research found the problem to be two-fold.
While it's clear the government needs to do what it can to promote the interests of small firms, there is a pressing need from within the small business community to start thinking more boldly about what they can achieve by looking abroad.
Anyone who works closely with small firms would tell you that the enthusiasm and drive of the UK's small and micro business leaders matches that of any CEO from a large corporation.
But there seems to be an ambition gap when it comes to thinking internationally that UK firms will need to overcome if they are going to scale up.
With nearly three quarters of small firms not exporting, it is clear that our small firms need to be more open-minded about the potential of their products or services, and recognise that there's appetite for what they sell beyond the UK.
What needs to happen? We need to provide small businesses with the skills, know-how and connections to make the step up. And we need to get better at encouraging small businesses to think globally.
That applies especially to those starting up, where we need to encourage that ambition from the off. Instilling that kind of mentality will see the UK take a lead in exports.
The truth is that if it sells in the UK, it there is a good chance it will sell overseas. Our islands boast some 4.9 million small businesses, employing around two-thirds of the private sector workforce.
They represent Britain's greatest advantage – an army of innovators that are ambitious and keen to grow. These are partners any business – British or not – would welcome working with.
But if we are to tackle the barriers to growth, we must focus on the key player in the economic fightback – our small business community. It's time to export the idea that the UK is open for business.
theguardian.com
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