Europe Remains the Top Export Market for UK Small Businesses
Small and medium firms continue to rely on European markets for exporting revenue despite trade opportunities with China and the prospect of a Brexit
UK small business transactions with Europe rose 59% to a staggering £198m in October 2015, indicating that UK company still rely heavily on Europe for overseas trade – research from World First has found.
The UK’s reliance on European trade clashes with David’ Cameron’s recent mission to open up trade with China and has also raised concerns in light of the ongoing Brexit discussions.
While small business trade with China has increased, with the amount of sterling traded in for yuan rising by 238% to £7.25m last year, UK companies still conducted 22-times more transactions with European markets.
Chief economist at World First, Jeremy Cook, commented:
“It’s clear that any decision to re-evaluate Britain’s relationship with the EU needs to be carefully considered given the volume of trade being conducted and perhaps more crucially, the continued growth trajectory of this.
“What is clear however, is that with volatility present in both markets, UK small and medium businesses must be aware of their foreign exchange exposure and manage this effectively in order to prevent currency fluctuations impacting the bottom line.”
Cook’s comment follows on from a recent Moneycorp report which revealed that small firms lose up to £110m a year due to unstable currencies.