Expanding exports top priority for British mid-sized businesses
Expanding exports abroad is a top priority for nearly a quarter of British mid-sized businesses.
According to new data from BDO, 22% of mid-sized businesses in the UK plan to open new facilities abroad or expand international sales by January 2024.
In another positive sign for the economy, 80% of businesses have either increased, maintained their export levels, or are planning to start exporting in the next year, despite wider economic pressures.
A third of businesses attribute this to the introduction of subsidies and EU funding replacements, which they claim have made it easier to export products and services to other markets.
Richard Austin, BDO’s national head of manufacturing said: “International exports are critical to rebuilding the UK’s economy and mid-sized businesses, the economic engine of this country, are a vital part of this.
“It is promising that so many already have ambitious plans in place and are performing well, despite wider economic pressures. However, for them to achieve their full potential it is imperative that they continue to receive targeted, inclusive support from government.
“Only with this ongoing support can we really see the full potential of these businesses unleashed.”
Minster for Exports, Lord Offord said: “We know that exporters create jobs, pay higher wages and help grow our economy, which is why we want the UK to be an export-led economy and reach a trillion pounds of exports a year by 2030.
“It is excellent news that more businesses are wanting to take advantage of the potential they could achieve by getting onto the exporting ladder. We’re here to help more businesses boost their exports and take advantage of exciting new opportunities across the globe.”
Mid-sized, AIM listed and private equity owned businesses, what BDO calls the Economic Engine, account for 1% of total businesses in the UK and provide one in four jobs.
However, survey results suggest that a significant section of these businesses have yet to start exporting or maximising their full potential and may require further support in order to start.
43% of those businesses that recorded a growth in export levels were located in the central south of the UK, compared to just 16% in the West Midlands, suggesting that whilst initiatives are working well in some parts of the country, more work could be done to spread opportunities.
Similarly, while businesses are keen to take part in existing initiatives such as Free Trade Agreements, nearly half (45%) of businesses claimed that targeted financial support such as enhanced Export finance loans would increase their ability to do so, while 22% suggested they were unsure how to access existing funding pots.
Other barriers to starting to export cited by businesses included high upfront starting costs and difficulties finding new partners abroad.