Small businesses target exports to fuel growth
09 November 2015
Over 850,000 small businesses plan to expand overseas in next 10 years
By 2025, 880,000 (17%) British small businesses plan to expand overseas – an increase from the 10.8%[1] of small businesses currently taking advantage of additional export revenues, according to research conducted by business e-lender Everline and the Centre for Economic and Business Research (Cebr) as part of its Small Business Tracker.
After growing their workforce (39%), exporting was the preferred way that small businesses saw their expansion plans going in the next 10 years. The stats varied according to regions, with almost twice as many London small businesses (30%) planning to export. Businesses in the North were least likely to take their business overseas (11%), followed by the South (excluding London) at 13% and the Midlands (17%).
The industries surveyed that are most likely to engage in exporting over the next 10 years are IT and teleco\ms (29%), manufacturing (26%) and media, marketing and PR (23%). At the other end of the export scale, finance and accounting firms (7%) had low intentions of expanding abroad, as did retail outlets (14%) despite online opportunities making it much easier to scale internationally.
Russell Gould, COO Everline, said: “Although the number of small businesses planning on expansion overseas is hugely positive, more could be done to encourage small businesses in this area, particularly outside of London. The latest Annual Business Survey figures show that a third of medium sized businesses and 41% of large businesses currently take advantage of export growth. Small businesses should work with industry bodies like the UKTI to see what opportunities exist and get advice on how to grow their business overseas.”
Sam Alderson, Economist, Cebr, commented: “The government has rightly highlighted the need to boost the UK’s level of exports. However, their target to increase annual exports to £1tn by 2020 looks likely to be missed by quite some way. While the increase in the number of small businesses looking to expand overseas is encouraging, the share remains relatively low. Given that tapping into the export potential of the UK’s small business community could provide a major boost to exports, encouraging small firms to look for opportunities overseas should remain a key priority in coming years.”
Dr Catherine Raines, Chief Executive of UKTI, welcomed the rise in small businesses looking to export. She said: “Exporters of all sizes are more productive, innovative and resilient to economic downturns than non-exporters; they achieve a stronger bottom line; boost their reputation and profile; and are more likely to stay in business.”
`
