Export is the way forward for SME’S

Research carried out amongst 1,500 small businesses in the UK, reveals the rapid benefits of exporting, with 29 per cent experiencing a positive impact on their bottom line within just six months of expanding into international markets. 

Eight in ten (82 per cent) businesses experienced a positive impact on their bottom line after two years of exporting.

Increasing the number of businesses that export is vital to the recovery of the UK economy and to boosting job creation. Nearly a third (31%) of businesses that currently sell overseas admit they have had to employ more people in the UK as a result of their exporting activity.These businesses, on average, have recruited an extra 15 people in the UK each as a direct result of their exporting activity. This includes many smaller SMEs employing a few extra members of staff, and a small number of fast growing SMEs taking on much larger numbers.This equates to an estimated average of around 336,000 more people being employed across the UK as a result of businesses exporting or selling to overseas customers. 

Given the positive impact on the bottom line of a business, it’s perhaps not surprising that 31 per cent of those who currently export are planning on branching into new markets in the next year and a further 24 per cent in the next two years. And, with continuing uncertainty in the Eurozone, businesses are looking for export opportunities further afield. Nine out of the top ten countries listed as targets by businesses exporting for three years or more are outside of Europe, with Hong Kong, India, China and Australia topping the list.

Beyond business growth, almost nine in ten (87 per cent) businesses claim there are other benefits to exporting, including having greater confidence in the longevity of the business (44 per cent), increased productivity (37 per cent), stronger innovation (28 per cent) and a longer lifespan for their products and services (27 per cent).