THE VAST majority of medium-sized companies in the UK have expressed optimism about their international growth prospects, although new research shows more than a third of chief financial officers are concerned about red tape when doing business abroad.
According to accounting firm BDO, 78 per cent of UK “mid-cap” firms expect to generate more revenues from overseas investment over the next three years, and 61 per cent said the ongoing eurozone crisis had made little or no impact on their international growth plans.
However, international advisory partner Kim Hayward said 38 per cent of chief financial officers cited the complexity of increased regulation as the biggest stumbling block to overseas growth.
He added: “Pushed abroad by conditions at home, they are pursuing growth overseas but in some instances are lacking in awareness as to how to address the real challenges involved. Crucially, those investing abroad for the first time seem to lack the confidence and knowledge they need to operate overseas.”
BDO’s report found 45 per cent of firms plan to invest in Brazil, Russia, India and China.