Britain's biggest economic challenge is not a lack of talent or ideas but a lack of confidence, according to David Abrahamovitch, founder and chief executive of coffee company Grind.
Writing in a comment piece, Abrahamovitch said that after joining 250 leaders from business, politics and culture on the UK's largest-ever trade mission to the United States, called Greater Together LA, he was struck by how Americans still see the UK as one of the best places in the world to build a company.
Lost sight of what makes Britain great
Abrahamovitch said that in conversation after conversation, including on the British Airways charter flight over, it became obvious that Britain has lost sight of everything that is great about the country. He noted that in Britain, there is endless talk about decline, while in America the conversation is about building.
He pointed out that Britain has world-class universities, globally influential creative industries, a trusted legal system and one of Europe's strongest technology and finance ecosystems. He asked whether the biggest challenge is simply confidence.
Politics cannot be an excuse
Abrahamovitch welcomed the new Prime Minister's focus on economic growth, noting that steps have been small but signals are welcome. He said the Government needs to create conditions that allow businesses to thrive, but the challenge shifts back to businesses.
The economy grew 0.4 per cent in the second quarter, better than expected, and the services sector is growing again for the first time since April. Abrahamovitch acknowledged that hospitality is still having a horrible time, unemployment is stubbornly high and confidence remains jumpy ahead of the Budget.
Confidence before growth
Abrahamovitch argued that confidence is a precondition for growth, not a reward for it. He cited his own experience at Grind, where during the pandemic the company diversified into ecommerce and grocery, creating new avenues for growth.
He said growth funds public services, creates better jobs, generates tax revenue and gives businesses confidence to invest again. He called on businesses to stop treating ambition as something faintly embarrassing and to start celebrating those who create jobs, invest in communities and build businesses.
Abrahamovitch concluded that the rest of the world already believes Britain can succeed, and it is time for Britain to believe it too.
