mall and medium-sized enterprises (SMEs) across the UK are growing in confidence and see international markets as critical to their growth, new research reveals. Both existing exporters and SMEs that currently rely on domestic sales have plans to increase overseas sales as part of their growth strategy for the year ahead.
Data from a MoneyWeek survey of 1,000 SMEs in the UK reveals that 84% now feel confident about their growth prospects over the next 12 months, including 35% that describe themselves as very confident.
These businesses acknowledge headwinds such as economic uncertainty and rising cost, but they also point to recent successes. Many report increased profitability and operational improvements.
This sense of optimism is fuelling growing ambition to expand overseas. Around seven in 10 SMEs in MoneyWeek’s survey already earn revenue from international markets. And significant numbers of firms now have active plans to increase export sales.
One in four businesses say they plan on increasing the number of markets they export to, while one in five are targeting sales growth in existing overseas markets. Many SMEs also express their determination to explore options in export markets and develop strategies to deliver on their ambitions.
The survey comes as the UK Government continues to provide export support for British businesses, including smaller firms. Last year, the Government published its Trade Strategy, setting out its plans to maximise trade opportunities now and in the future. That included details of improved support for both established and aspiring exporters.
In addition, businesses keen to start with or step up international trade often need financial support. This is available through UK Export Finance, the UK’s official export credit agency. Its role is to help UK businesses win export contracts by providing attractive financing terms to their buyers, fulfil contracts by supporting working capital and trade finance, and get paid by insuring against buyer default.
There are multiple sectors and industries with an impressive story of overseas trade success, from advanced manufacturing to food and drink. And with optimism among UK SMEs now growing, many businesses see overseas sales not only as a vital source of growth, but also as critical to their resilience. International markets provide valuable diversification benefits, enabling SMEs to broaden the base of their businesses, and to unlock additional streams of potential revenue. As SMEs look to grow sustainably, sales in overseas markets help them to manage risk.
The bottom line is that UK SMEs have a huge opportunity in markets all around the world. With so much UK Government support available, SMEs are determined to embrace that potential.
British SMEs prepare for
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Find out more about UK Government support at business.gov.uk
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global growth
SMEs can now draw on a range of services, including practical guidance and advice on exporting to specific markets. The starting point is the Business Growth Service, which brings together support on tackling multiple business challenges - you can use it to orient yourself quickly. Opportunities include training through the Business Academy, bespoke answers to export-related questions, and information on how to take advantage of the UK’s trade deals.
MoneyWeek’s research suggests there is a strong appetite for such support. More than eight in 10 SMEs say they are likely to explore government-backed help where it aligns with their ambitions. And 41% say they are already likely to look to the UK Government for information and advice.
Support identified as potentially useful by SMEs includes market insights, training and upskilling, connections to overseas buyers and partners, advice and guidance, and help with questions around tariffs, quotas and regulation. The UK Government, led by the Department for Business and Trade, can help British businesses with such assistance as well as a range of other export support.
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