Britain ‘should use German model’ to boost UK economy
By Ruth McKee
Britain needs to copy Germany's support of medium-sized businesses (MSBs) if the economy is to grow again, according to business experts.
The Confederation of Business Industry (CBI) has warned the government that unless more financial help is given to these businesses vast revenues will be lost, in a report published today.
"Medium-sized businesses are truly a forgotten army, and now is the time to unlock their potential," said CBI director general, John Cridland.
"We should be championing, nurturing and encouraging our mid-sized firms so that more of them grow and create jobs. For too long these companies, which could inject tens of billions of pounds into our economy, have fallen under the radar of policymakers."
He went on to say that the German model of the 'mittelstand', where specific support is given to MSBs, should be applied to Britain so that "the small army" of MSBs can unleash their full economic potential.
"I want the UK to have its own version of the German 'mittelstand' – a backbone of medium-sized firms which export, innovate and generate growth. These future champions would help the UK weather unexpected economic shocks, and act as a new engine for growth," he said.
One key suggestion contained in the report is the CBI's plea that the government make the bond market available to MSBs, so that more MSBs can issue bonds and utilise security-based finance.
The report suggests a raft of measures to increase profits of this sector and stresses that more MSBs should be included in the government's international trade delegations.
