In the UK we need to have a thriving economy based on innovation and small businesses. We cannot compete with the likes of China and India when it comes to large scale manufacturing and high volume industries. But we can, and must compete through high quality, fresh ideas and innovations which see us as market leaders in a variety of high tech fields.
For this to happen we must diversify our sectors away from just the financial services in London. As Michel Barnier, the European Commissioner for Internal Markets and Services, stated “if we don’t research together we will have to buy from the Chinese or Americans”. Michel Barnier also highlighted the need for a Single European Patent to then protect our inventions and products so that small businesses can feel safe exporting their products throughout the world without the fear that their hard work will be copied elsewhere.
However, there is still a problem with funding, as the banks are still trying to recapitalise following the financial crash there still isn’t the appetite for investment that would see our grow. Part of the problem is that some industry sectors still think of Europe as a hostile place to do business because of EU red tape. For this reason the European Commission has recently said that it will be looking to reduce regulation to encourage new venture capitalists into the European markets. We can thereby increase the access to finance for small firms.