E-Commerce And Exporting Key To Business Growth
Following Theresa May’s announcement that Article 50 will be triggered by March, 77% of businesses have said Brexit has had little impact
UK small businesses are more likely to experience growth if they have an e-commerce platform and choose to export, according to a report by Capital Economics.
The Capital Economics SME Growth Tracker Confidence Index has revealed that 45% of UK small businesses now use e-commerce to serve customers, with these enterprises expecting 48% of revenues to come via this medium in the coming year.
According to the survey, businesses who sell online can expect revenue growth of +1.8% in the next 12 months, compared to just +1.3% for those who don’t.
Its suggested exporting is also crucial to success, with 46% of small businesses now selling overseas – with international trade accounting for 36% of their revenue.
Firms who export predict their revenues to grow by +0.8% in the next 12 months, compared to just +0.4% for those who only target the domestic market.
Following Theresa May’s announcement that Article 50 will be triggered by March 2017, it appears that most business owners have shrugged off any suggestion that July’s referendum has impacted on their growth.
77% of respondents said Brexit has had no impact on business decisions with just 23% reporting they “put off” business decisions due to the referendum result.
Doug Gurr, UK country manager at Amazon, said:
“The results show the increased confidence of those small businesses who are using e-commerce to reach new customers in Britain and of those who are exporting abroad.
“These businesses are demonstrating real leadership and helping to ensure the UK’s continued prominence on the global economic stage. We believe technology has a big role to play in helping to foster small businesses across Britain.”
Does your business export? Here’s how you can take advantage of Brexit.