Giving the small a big chance

By JOHN HUTCHINSON

Charles Rolls once formed a one-man engineering business in Britain. Andre and Edouard Michelin settled on just two players to call their first tune. If history is anything to go by, some of the 22nd century's most successful corporations will be starting out right now, many as one or two-people businesses.

Shrewdly, Rolls developed his personal business plan by teaming up with Sir Henry Royce 99 years ago to create Rolls-Royce, initially a company making a famous luxury car. It - later became today's leading power systems specialist.

The brothers Michelin, in France, developed a detachable pneumatic tyre that revolutionised the transport industry. And today, other ambitious people out there in the brave world of micro-business are setting-up shop, some certainly destined to emulate their global success.

A high proportion of the small businesses that have sparked into life in the past 25 years are in the United Kingdom, one of the first nations to undergo massive structural change in its heartland high-employment manufacturing and mining industries.

In the 1970s and 80s the UK's heavy engineering and production core suffered meltdown in the intense heat of global competition, a process hastened by the pace of political change.

Traditional jobs were lost, but innovative jobs began to take their place. New technologies inspired new approaches to trade and many Britons created and joined fresh business start-ups, creating a nation of new-tech small shopkeepers. Today, more than three million of them are busily trading their wares.

In fact, small businesses account for 99 per cent of all UK businesses and the strongest growth areas are micro companies employing fewer than 10 people and the burgeoning sector of one-person businesses.

To put these figures into perspective, the UK still punches way above its weight with the global trading clout of its 7000 largest businesses, which account for 55 per cent of the country's commercial turnover. Its 28,000 medium-sized businesses also perform well. But its small firms are the powerhouse for the future, providing 43 per cent of all non-government jobs and 31 per cent of the country's total trade.

Literally spicing-up these trade statistics and tempting the taste buds of good food fans at home and abroad is a small UK firm teaching the world the delights of stuffing.

It's not a straightforward task, says Jenny Jones of the Shropshire Spice Company, an 18-employee company formed by a group in a Shropshire pub 30 years ago.

"Our core product is specialty stuffing, a tasty traditional mix of herbs and spices that is cooked with joints of meat and other foodstuffs to enhance flavour and attraction,".

Until recently the UK, the home of stuffing, was our sole market, but now we are beginning to break into exports, particularly to countries like New Zealand, with a large proportion of expatriate Britons who simply enjoy the best stuffing you can buy. Increasingly, other markets are beginning to take notice as well."

The time is right for small companies like hers to expand, believes Jones.

"Being a small business, we are very flexible and can react and adapt very quickly to specific market demands," she explains. "We have paid a lot of attention to product development and developing our niche market in the past 18 months and this is beginning to pay off. New Zealand could become our major export customer."

The ability of the best UK small firms to move nimbly and efficiently around the globe and with minimum risk also is paying off for Motivus, a company nestling among the mountains of England's Lake District and now setting foot across the uplands of the world.

Motivus manufactures the Pacerpole, a high-tech, telescopic walking stick designed for steep and challenging surfaces. Outdoor enthusiasts are turning to Pacerpoles, not least in New Zealand where Motivus has struck an import deal with equipment specialist Aarn Tate, of Christchurch.

Motivus demonstrates the way a small, focused business can exploit personal knowledge and expertise. Its founders, a physiotherapist and an architect, began their climb to success in their garage.

Extensive research and testing by outdoor professionals proved the effectiveness of their scientifically designed poles which complement the body's natural pronation - the twist of the foot as it leaves the ground. Pacerpole's design helps control the loading around the foot before push-off, enabling walkers to move with great efficiency. The result: delighted customers, enormous demand.

Companies such as Shropshire Spice and Pacerpole are experts at rapidly exploiting emerging technologies across the business spectrum, easily taking advantage of improved computer systems and software, better communications and well-organised networking opportunities.

High technology is eschewed by another highly successful, very small, business that exports to New Zealand.

At The Rocking Horse Shop, in York, northern England, Anthony Dew crafts traditional rocking horses by hand. His individualistic, no machines approach produces top-of-the-range toys that are singular works of art.

The handmade, slowly maturing cheddar cheeses made by Quickes Traditional, in Devon, south-west England, are also, in some people's opinions, works of art. The company's award-winning cheeses are made by skilled craftsmen with more than 100 years' experience between them, from the creamy milk of its 330 dairy cows, to traditional recipes.

Exporting success around the world, including to New Zealand, is mostly achieved by getting people to taste the product, after which, they are hooked.

Also finding favour in New Zealand is Scottish food company Walkers. Best known for its pure butter shortbread, it also produces other top-quality biscuits, such as Treacle, Toffee & Pecan, Fruit & Lemon, Stem Ginger, Chocolate Chunk, and Sultana. All are based on original family recipes and baked in small batches to produce an authentic homemade taste.

The company is particularly proud of its Wheat'n' Oat biscuits, the perfect accompaniment to cheese, which are made with wholly organic ingredients.

UK small firms are also in the ascendancy because of the robustly professional advice and assistance they receive from Government agencies anxious to build on the success of the small-firms revolution.

Their major champion, the Small Business Service, set up two years ago, provides a single organisation dedicated to helping small UK firms and promoting their interests within the Government.

Crucially, the SBS runs the UK-wide network of Business Links that provides information, advice and access to experts on all issues of running and developing small firms.

Such links provide vital scope for networking, enabling small companies to establish connections with other businesses in the UK and overseas that spark their long-term prosperity.

Britain's Business Links service is widely applauded by small firms for its real-world approach and dedication to helping firms and their owners and employees compete with the world's best.

The UK is second to none at generating ideas, says Nigel Griffiths, the Government's Small Business Minister.

Its small firms competed on a world-class platform demonstrating thoughtful, expert and innovative ideas.

Export seminar

* The British New Zealand Trade Council is organising an Export to Europe Seminar on Friday, June 13, at the Northern Club in Auckland.

* The Prime Minister will open the event. Guest speakers will offer advice on the European market.

* The seminar, aimed at small and medium businesses, will cost $50 a person and includes refreshments.

* Contact BNZTC chairman Leslie Jacques: (09) 520-2263 / 025 850-422.

The Shropshire Spice Company

Pacerpole

The Department of Trade and Industry UK

Trade Partners UK