News in brief: Born Global, micro-nationals, India, interest rates

Born Global
Born Global

Micro-nationals on the rise

Micro businesses in the UK are reaping the rewards of being ‘born global’ – nearly four in five (78%) of UK micro-multinationals feel international trade is just as accessible for small businesses.

Micro-multinationals are small, entrepreneurial businesses that complement domestic operations by opening offices or hiring staff in one or more overseas markets. In the UK, 40% of micro-multinationals have opened offices in new markets in the last five years—one of the highest rates in the world—while three in 10 have increased overseas employee numbers, according to research commissioned by FedEx Express, a subsidiary of FedEx Corp (FDX), and the world’s largest express transportation company.

In a world-wide context, 31% of micro-multinationals are growing at a rate of 11% or more, compared to just 21% of SMEs in the same position. Different skill sets, technological benefits and lower overheads were listed by UK micro-multinationals as the top three factors contributing to this superior performance. Additionally, when asked to describe themselves, the words “innovative”, “entrepreneurial” topped the list, with over half of UK micro-multinationals using these descriptors.

Globally, all micro-multinationals believe having a presence in multiple markets makes it easier to sell goods cross-border, with more claiming it is easier to operate internationally now than it was in 2010.

Reserve Bank of India interest rates at five-year low

The Reserve Bank of India has cut interest rates by 25 basis points from 6.75 per cent to 6.50 per cent. This marks a five year low, coming into immediate effect.

Commenting on the announcement, wealth management and investment advisory firm Sun Global Investments CEO Mihir Kapadia said: “These cuts were not unexpected, and are in response to a fall in inflationary pressures.

“Governer Raghuram Rajan has said that the stance of monetary policy will remain ‘accommodative’, which means we can probably expect more rate cuts coming up if inflation continues to fall.”

Kapadia suggests that, while controlling inflation rates is the foremost priority of the central bank, it seems that some industrialists will need more persuading if they are to lose their hesitance with regards to investing in the world’s fastest growing economy.