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October 03, 2014

SMEs set their sights on international expansion

SMEs set their sights on international expansionSix out of ten UK small to medium-sized businesses expect to be trading internationally in 2016, according to a new survey – an increase of 20%.

The survey, conducted by YouGov on behalf of Citrix, polled 2,000 UK SMEs in 11 regions. Of those currently selling internationally (42%), almost half sell through their own websites (45%), but a growing number (14%) are using online marketplaces.

The research found that:

  • 20% expect to increase the number of countries they trade with by 2016;
  • 28% expect revenue from international sales to increase by 2016;
  • 72% of those trading internationally say international business partners will be important to their business in 2016.

While Europe and North America continue to dominate international trading relationships, at least one in ten UK SMEs says it is doing business outside these markets. Significantly, younger business managers (in the 25-44 age group) are more likely to be trading with emerging markets than those aged 45 and over.

According to the survey, technology and marketing services companies are the most confident about international expansion and revenue growth.

Also out this week, a UPS survey of 8,000 small businesses across seven countries has found that UK SMEs are outperforming their European counterparts when it comes to building revenue from export.

UK SMEs that export outside the EU are performing better than firms in France, Italy, the Netherlands, Poland, Germany and Belgium, with 72% reporting increased turnover in the years 2010 to 2012.

UK SMEs are also more bullish, with 46% of UK SMEs anticipating an increase in export volume over the next 12 months, compared to 41% in Germany, 31% in Belgium and 17% in France.

However, both reports highlight the fact that many SMEs across Europe are still failing to take advantage of the export opportunities available – with shipping costs, administrative burdens, and cultural and linguistic barriers hampering international expansion.

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