SMEs look to the wider world for orders

New research has suggested that small to medium-sized enterprises in the UK are turning to the export market for new growth opportunities. The research comes out of a finance and accountancy magazine and shows that around a third of small companies have been increasing the amount they export in the past three years. The data also suggests that the financial crisis is the reason why SMEs are exporting more.

Accountants suggest that the reason people are exporting more is because of the stagnating UK economy. Small companies are not seeing growth at home and so they are turning to international sales as a way to increase growth. In addition to this the weaker pound is encouraging exports. The data also suggests that British businesses are keen to invest in developing economies as they see them as a good area for future growth.

The managing director of Venture Finance is Peter Ewen and he has said, “Companies are looking abroad for new revenue streams because the ones in the UK are slowing down or have dried up.”

The greatest rise in overseas trading for SMEs have occurred in the Far East which over 25% of companies are increasing their trading to. Significant growth has also been seen in Eastern Europe and some other European countries. Mr Even went on to comment, “Trading internationally can seem like a daunting prospect but when there is little prospect at home companies are having to take the risk and seek out international clients and customers. Research is essential to their success.”