As global economic growth edges up to 3.1% and UK businesses continue to thrive despite the implications of last year’s Brexit vote, now is the time for SMEs to recognize the plethora of benefits that are available to them if they get on board with exporting.
Small firms that export their goods to sophisticated foreign buyers boost their overall profitability by 26% and also benefit from the transferring of skills and expertise.
Despite the benefits being paramount for SMEs that export on a global scale, research from alternative finance firm Growth Street has revealed that 65% of 1,100 businesses that were surveyed felt that they were dissatisfied with the guidance that was available to them regarding exporting.
SMEs that choose to export their goods globally will benefit from skill sharing and a reduction in the cost of matching domestic firms with foreign buyers, which will in turn boost trade. Traditionally, exporting has been associated with larger corporations, but for SMEs, it will mean the opportunity to reach larger and more sophisticated markets.
Unfortunately, many businesses are failing to see the bigger picture and open themselves up to the opportunities that are available to them outside of the EU. Thankfully, studies have also shown that SMEs are feeling more positive about the UK’s exit from the EU, with firms feeling confident regarding embracing the change having risen from 33% to 41%.
Hopefully this positive outlook and mind set will give more SMEs the confidence to push forward and expand into more lucrative foreign markets.
While the number of SMEs that are choosing to export is in decline, market research from YouGov has also revealed that companies choosing to take the plunge overseas are entering into more markets than ever.
GIC Capital is able to provide capital expansion for small businesses keen to facilitate growth or maintain their current levels of output in the form of business loans and overdrafts.
For more information about GIC Capital visit our website.