Sharing best practice can boost UK productivity
We can learn a lot from businesses that are growing quickly and particularly those scale up companies that are growing very quickly. So if we understand more about the decisions that the leaders in charge of those business take and what they prioritise, then we believe that more companies can take the opportunity for growth.
But one of the things that we find with small and medium sized companies in particular is that they’re often not that well networked. What we’ve tried to do at the CBI is to provide opportunities for best practice to be shared among the business community because when it comes down to it the government can only set the conditions in which businesses are going to thrive or not. Businesses themselves have to take responsibility and if we can create more ambitious, forward thinking businesses then that’s going to have the impact that we want to see.
One of the things that we really need to focus on with growth companies is their ability to make an impact on productivity. We know that scale up companies are more likely to be productive than a general company in the economy and we know that the UK has a problem with productivity. It’s about 17 per cent, UK productivity growth… 17 per cent below the G7 average. So if we can distil the best practice from those scale up companies and spread those out to more companies then I think that’s an opportunity.
Obviously uncertainty in the economy is going to be a drag on productivity growth because businesses when they see uncertainty they hold back on those investment decisions, and actually investment in things like innovation, in infrastructure, in new technology are the things they’re going to see those fundamental leaps in productivity that we want to see.
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