£1 Trillion Government Export Target Won’t Be Reached

Despite a costly advertising campaign, just 53% of all UK small businesses currently export – the same amount as in 2014

£1 Trillion Government Export Target Won’t Be Reached

The government’s target of having an export industry worth £1 trillion by 2020 looks unlikely to be reached, as 96% of all non-exporting businesses have no plan to sell overseas in 2017 – according to research by ICAEW.

Despite an extensive advertising campaign, it’s revealed that just 53% of all UK small businesses currently export, the same number recorded in 2014 – with just 1% of enterprises exporting for the first time this year.

Just 25% of businesses that sell abroad are planning to enter new markets in the next 12 months, down from 33% two years ago.

When quizzed about why they decided not to take the jump into the world market, 41% of small businesses have replied that they had a sufficient customer base in the UK

The US and Europe are the main destinations of selling for 30% of exporters, with more than half their turnover coming via this channel – signifying the importance of global trading.

Stephen Ibbotson, ICAEW director of business, said:

“This research illustrates that government is failing to encourage businesses to export goods internationally, despite a five year, multi-million-pound government campaign. In a post-Brexit world where business confidence is low and investment sluggish, it’s important that exporting is incentivised. The worry is for those companies who believe they have enough of a market in the UK, so don’t export, as weaker domestic demand is expected in 2017.”

“The government should look at funnelling some of the money from the Department for International Trade into directly incentivising business into export. One example could be introducing a voucher scheme for companies researching and developing in overseas markets.”

Will 2017 be the year you start selling to the world? Read this guide.

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