Insider Media Limited

Mark Doleman, head of Entrepreneurial Business and senior partner at Deloitte in Nottingham, analyses the findings of the Deloitte Entrepreneurship UK 2011 report

It is not surprising that the majority of entrepreneurs are optimistic about growth – they are after all some of the most tenacious and ambitious individuals in UK industry. Over half are forecasting double-digit growth over the next 12 months, despite ongoing economic instability, and 38 per cent project growth to exceed 50 per cent over the next three years.

What is interesting is that a third of entrepreneurs predict this growth will be achieved organically; and more than half domestically.

Although more entrepreneurs are looking overseas for growth opportunities than last year, still the majority, 58 per cent, see the UK as their greatest opportunity for expansion. Embarking on an export strategy can seem overwhelmingly complicated – navigating language barriers, unfamiliar bureaucracy, differing legislation and tax systems and the myriad of business model options.

So how do we help entrepreneurs to take that first step? The private sector has a number of roles to play here. First and foremost there are many entrepreneurs who have successfully navigated international markets with great success. Greater mentoring within the community would help to demystify seemingly impenetrable global expansion plans.

Raising new capital is one of the biggest priorities for entrepreneurs and 75 per cent believe the main source of working capital will come from the business itself over the next 12 months. Given the likely muted economic conditions, this could restrict significant export plans.

Larger corporates are already starting to fill the gap here by offering what is in effect seed capital. Bigger companies are proactively seeking entrepreneurial businesses in which to invest to boost their own product innovation. I think we will see more of this – particularly in regions like the Midlands where we already have highly successful global players in engineering, technology and life sciences.

There is clearly an appetite to better exploit international opportunities – 17 per cent of entrepreneurs highlight it as a key business strategy priority over the next 12 months. By better utilising existing regional business networks, helping to connect entrepreneurs with like-minded peers and larger corporates, we can help to turn that priority into a reality.

Mark Doleman - view profile

Deloitte, Office Senior Partner – Nottingham
mdoleman@deloitte.co.uk
www.deloitte.co.uk
0115 936 3742