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SME Resource

Why export?

Exporting represents significant opportunities for UK SMEs looking to expand, grow revenues and increase profitability, we’ve listed just a few below:

  • REVENUE AND PROFIT GROWTH: Looking beyond the UK’s borders can help companies optimise sales and revenues; increased demand delivers economies of scale, lower unit costs, and higher profits that would be impossible to achieve in the domestic market alone;
  • DIVERSIFICATION: Exporting enables companies to diversify their offering, the result is an increased resilience to economic shifts and a more sustainable business;
  • REDUCED RISK AND LONGER PRODUCT LIFECYCLES: Spreading customers across several markets and regions helps to spread business risk. If UK demand for a product or service begins to plateau, businesses with a global presence are more protected and typically enjoy longer product lifecycles;
  • INNOVATION: A global presence increases a company’s exposure to emerging market trends and opportunities; companies able to capitalise on this become inherently more innovative and competitive within their sectors;
  • CONSISTENCY OF REVENUE: Seasonal businesses can benefit from exporting by introducing their products to markets able to consume them during periods of low demand in their domestic market;
  • FULFILLING DEMAND: There are big opportunities beyond our borders, particularly in non-EU countries. The “Made in Britain” brand commands respect and achieves a price premium (Recent research conducted by Barclays Bank concluded that overseas customers are willing to pay up to 7% more for British goods). Furthermore the UKTI publishes a new export opportunity every 37 minutes, and this is only set to increase as more UK companies enter the global stage;
  • TIMING: The uncertainty surrounding Brexit may have dissuaded some companies from progressing with their international trade plans, however this really shouldn’t be the case:
    • There is considerable pressure to raise exports before the UK formally leaves the EU, this is a priority for the UK government, and we will see business incentives emerge over coming months that will help achieve this;
    • The fall in the pound (15%) has given UK exporters competitive and profit advantages, they can sell their products cheaper and/or increase their margins;
    • There is increasing talk of the government introducing an Export Tax Credit. This would apply to both exported goods and services to help cover cost of exporting.
“By trading their goods and services internationally the typical exporting SME adds over £287,000 in revenue over 12 months with 9% of these also saying that exports boost their profits by more than 20%.”
Centre for Economics & Business Research
“Myriad of opportunities offered by the world’s emerging economies – many of which are experiencing rapid rates of growth i.e. the ‘BRICs’ (Brazil, Russia, India and China) and the CIVETS (Columbia, Indonesia, Vietnam, Egypt, Turkey and South Africa) whose dynamic economies will provide a wealth of prospects for UK firms in the coming decades.”
“UK small and medium-sized enterprises are failing to take advantage of a vast range of export opportunities to lesser-known markets.”
FedEx Express