The challenges facing the British government in trying to forge stronger alliances with emerging markets such as India and China is far greater than it seems, according to a recent survey.
A survey of 1,400 small and medium businesses across the UK, conducted by small business e-commerce company Alibaba.com, has revealed that owners and managers of SMEs and start-ups are failing to align their businesses with low cost economies, inviting trouble in the next financial downturn.
There were an estimated 4.8 million private sector enterprises in the UK at the start of 2009.
The survey estimates that 80 per cent of the respondents are failing to embrace the global marketplace, with over a quarter (26 per cent) considering themselves too small to trade with partners from outside the UK. Cultural and language barriers (21 per cent), coupled with trust issues (24 per cent), were cited as the main drawbacks.
The result of this study comes as the current coalition government is working extra hours in sewing new and stronger partnerships with markets like India and China. Prime Minister David Cameron was in India in July in an attempt to make India a major trading partner. He heads a similar delegation for China tomorrow.
Maggie Choo, General Manager – EMEA (Europe, Middle East and Africa) of Alibaba.com said: “Small businesses believe they are ill equipped to compete in the global marketplace but in fact the opposite is true. The internet has opened up a host of opportunities for businesses, however small, to reach out, connect and trade easily and securely online. It is crucial that they take advantage of technology advances such as e-commerce platforms if they are to remain competitive.” Andrew Cahn, chief executive of UK Trade & Investment, said: “Small businesses need not be cut off from the global marketplace or feel international business is only for big companies.”
