UK entrepreneurs shy away from BRICs: Deloitte

Mumbai: Entrepreneurs in the UK are generally confident about their prospects for 2011, but are reluctant about expanding their businesses into high-growth emerging markets such as India and China, according to survey by Deloitte titled ''Entrepreneurship UK: 2010/11''.

The survey shows that less than 1per cent of the 350 companies that were surveyed, cite India and Brazil as prospects for significant growth, in addition to just 1.5 per cent consider China a prospect for growth.

This despite the fact that BRIC markets currently represent 70 per cent  of global growth and are expected to maintain these growth levels for several years.

While businesses may be losing out on opportunities, they could also be seen as controlling their risk at a time when undue risk-taking is generally not welcome. So while revenues could grow as a result of entering the BRIC markets, there is also the possibility that a foray could be expensive and fruitless.

Owners of the larger companies in the survey say they are more likely to attempt to enter these countries than those with sub-£5m revenues, as sufficient resources are more readily available and the effect of less successful attempts can be absorbed.

 The annual survey of Deloitte's owner-manager clients found that 90 per cent expected to increase their revenues in the coming 12 months. However, over 60 per cent of the 350 companies asked expected to generate that growth through domestic sales.