Over Half of British Small Businesses Currently Export
Small and medium enterprise export revenue helping to tackle UK’s trade deficit with 72% of firms predicting overseas expansion over the next five years
Britain’s small and medium businesses are playing a huge part in narrowing the UK’s trade deficit with more than half (53%) currently exporting, according to FedEx’s Great British Export Report published today.
Based on the research, it looks like small and medium enterprises will be increasing their positive contribution to the growth deficit (which currently stands at approximately £2.8bn) as 72% forecast overseas growth in the next five years.
This small business optimism is not unsupported as the entire market has been growing: European exports of over £5,000 grew from 43% to 64% in 2014; and the same metric rose for exports outside of Europe – rising from 37% to 57%.
The research, an annual survey of 1,000 companies, also found that small and medium companies are exporting more than they are importing and that businesses willing to export internationally are reaping the benefits.
The average small business who targets markets outside of Europe exports £714,000 annually (importing only £410,000), whereas the average small company which only targets European markets exports £553,000 (importing £535,000).
This means an average increase of £304,000 additional revenue for those small enterprises willing to expand internationally.
Trevor Hoyle, vice president of FedEx’s Northern Europe operations, commented: “British small and medium enterprises are a driving force in improving the economy.
“The report shows that small and medium businesses recognise how lucrative exporting can be for their business and as result more are going global, actively helping to reduce the deficit.”