BDO – One in four UK businesses are prioritising exports
Exporting more of their products and services overseas is a top priority for one in four mid-sized businesses in the UK, according to new data from accountancy and business advisory firm BDO.
BDO’s latest survey of mid-sized businesses found that 25% are focusing on growing their exports over the next six to nine months, prioritising this over other growth strategies including increased research and development and listing their businesses on the stock market.
The mid-market, described by BDO as the UK’s ‘economic engine’, comprises businesses with revenues between £10m – £300m, including those that are private equity owned or AIM listed.
With revenues now equivalent to more than half of UK GDP, mid-sized businesses have increased turnover from £964bn to £1.6tn in the last decade, growing revenues overseas from £105bn to £130bn in the same period.
Despite facing significant macroeconomic challenges in the past year, nearly half (47%) of those surveyed have been able to increase, maintain or are planning to commence exports in the next 12 months.
However, BDO’s survey results suggest that a significant section of these businesses have yet to reach their full potential, with further support from the government required.
Approximately one third of businesses (34%) said that while they are prioritising exports, they foresee manoeuvring red tape and complex custom rules as one of the top challenges facing them in the next six months. Other barriers cited by businesses include a need for information and targeted guidance (47%) and fewer costs and requirements for exporting goods specifically to the EU (42%).
More than a half (57%) of businesses called for more financial support from the government in order to expand their operations overseas, citing measures like the Start Up Loan, British Business Bank grants and Export Finance loans as a promising start.
Richard Austin, BDO’s national head omanufacturing, said: “Growth, growth and more growth is the goal and exports, particularly those of the UK’s mid-sized businesses, are vital to achieving this.
“Today’s data shows that the importance of exports to growth is not lost on our mid-market and it is promising to see so many already have ambitious plans in place and are performing well, despite external turbulence.
“However, their need for support cannot be underestimated. For mid-sized businesses to achieve their full trading potential it is imperative that they receive targeted, inclusive support from government.
“Only with this support can we really see the full spectrum of what these businesses have to offer.”
BDO’s ‘Mid Market Manifesto’ outlines key policy areas to support the growth of the UK’s mid-sized businesses.
