As Small businesses and entrepreneurs are hesitant about expanding to emerging markets like India and would rather look at investing in more developed markets like the US, according to a report
Small businesses and entrepreneurs in Britain are hesitant about expanding to emerging markets like India and would rather look at investing in more developed markets like the US, according to a report compiled by global consulting firm Deloitte. "Less than one percent, out of the 350 companies surveyed, cite India and Brazil as prospects for significant growth, in addition to just 1.5 percent that consider China a prospect for growth," said the report from Deloitte titled Entrepreneurship UK: 2010/11.
"This despite the fact that BRIC (Brazil, Russia, India, China) markets currently represent 70 percent of global growth and are expected to maintain these growth levels for several years," the report said. Over 60 percent of the companies surveyed expected to generate growth through domestic sales this year.
"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 these markets, there is also the possibility that a foray could be expensive and fruitless," said the report.