Exporting on the up for UK small businesses
UK businesses saw a rise of 6% in total payments from Europe during 2015 compared to 2014, while of the top 10 export destinations for UK SMEs, four fifths were in Europe. This is according to the new Barclays’ Business Abroad Index, which tracked overseas payments made to its business customers.
Germany was the UK’s primary exporting partner for the year to December, with payments from Germany to UK SMEs increasing by 6%. The second and third most popular export destinations were France and the US, with inbound payments from France seeing the biggest rise, up one place compared to the previous year. While it remained out of the top 10 in 18th position, exports to China from the UK continued to grow at a steady rate, up 21% in the same period.
Steve Childs, head of international for business banking at Barclays, said:
“Our index shows that UK exporting saw a small boost on the previous year, with the value of payments up as trading relationships grow globally. Long-standing relationships remain between UK businesses and European trading hubs such as Germany and France, along with the US as the top export destinations. Despite the recent slowdown in China’s economic growth, there are still huge export opportunities for UK producers.
“British products and services are in demand, and exploring overseas avenues delivers huge growth potential. The first port of call when considering exporting is identifying a target market and researching it thoroughly; learning the culture, economic and political environment, customs, market, how business is conducted and most importantly, the competition. Deciphering how a product should be sold – direct from the UK – or using distributors is also an important first step, as well as planning how a product can be promoted overseas.”
The Barclays’ Business Abroad Index also found growth in exports from the UK’s retail and manufacturing businesses in 2015, up by 36% and 10% respectively compared to 2014, despite a difficult year for the manufacturing sector.
Barclays has joined forces with the UKTI as the bank aspires to helping over 15,000 SMEs to export in the next five years under its Exporting is GREAT campaign. As part of this commitment, Barclays has also introduced new features to its Business Abroad service, driving greater solutions for business wanting to export. The service offers free access to expert guidance, advice, workshops and tools. The latest features include discounted shipping and credit insurance through partnerships with DHL and Coface, and a free app that provides live mid-market rates across 90 currencies, to support businesses with their export ambitions.
