How exporting is changing the face of SMEs across the globe
Following Export Week, it is clear to see that many SMEs see overseas investment as being the key to future growth as the level of sales to foreign countries continue to increase.
While the government’s target of doubling exports by 2020 may seem a little far-fetched, there is no reason why the current levels of growth should not continue.
Selling abroad means many SMEs are building their brands and taking advantage of many opportunities available to them.
This is ensuring financial stability and providing a safe environment for them to do business, especially after the recession left many businesses in administration or in need of restructuring.
British brand on the rise
Developing links abroad could enhance the UK economy as well as the future of SMEs, with the demand for the ‘made in Britain’ brand never being stronger than it is now.
As a result, the current market represents a tremendous opportunity for SMEs looking to expand, while other countries across the world are also in a similar position.
Recent research from Barclays has suggested that most SMEs take just four years to realise that the desired levels of growth cannot come from the UK alone.
At this tipping point they are therefore considering their global options and this is driving higher levels of exports month-on-month.
Approximately 500 SMEs were surveyed as part of the study and it found that many of those yet to start exporting simply were unaware of the available options.
As a result, it is likely that many businesses will chose to start exporting in the near future, especially with the economy showing early signs of recovery.
While making the decision to move into the overseas market is by no means an easy one, the threat of corporate recovery is driving many businesses to try new things.
According to the study, 60% of SMEs had stumbled across exporting accidentally, suggesting a pro-active approach could dramatically enhance levels in the near future.
Trading inside an individual market can have its benefits for many companies, but those looking for true levels of expansion are looking abroad more often than ever before.
As a result, growth levels among SMEs are improving and many are swerving away from financial worries that have dogged them in the past few years.
By Phil Smith