Exporting SMEs more confident about future growth
• 92% of SMEs that currently export are confident about their growth prospects over the next five years
• 52% of SMEs that had grown in the last year, actively sought out international clients
• Only 8% of SMEs surveyed said that they were considering expanding into export markets
Smaller British companies which trade overseas are more confident about their future growth than those who only trade at home, according to new research commissioned by Santander UK.
The survey found that 92% of exporting SMEs were confident about their growth prospects over the next five years, compared to only 47% of SMEs that do not export.
Business performance over the last 12 months was also stronger for exporting SMEs. Of the companies surveyed, more than half (52%) of those which said they had grown significantly in the last year also said they had actively sought new international clients. By comparison, 89% of SMEs that shrank significantly in the last 12 months have never traded internationally.
The survey found that 20% of SMEs actively seek out international clients, whilst a further 8% said that they were considering exports. However, 59% of respondents said they had never traded internationally and have no plans to do so.
Marcelino Castrillo, Head of SME at Santander Corporate Commercial, said:
“This research once again shows how important breaking into new export markets can be for delivering business growth. Banks can play an important role in encouraging SMEs to export by providing the right products to manage financial risk, and by helping customers to understand where opportunities might lie. For instance, the Santander Breakthrough programme provides trade missions to fast-growth SMEs to help them establish local networks in potential export markets.”
The survey of 250 businesses conducted by Dods and commissioned by Santander UK seeks to understand how the Government and private sector can encourage strong SMEs to unlock their potential and develop or accelerate ambitious plans for growth.
These issues will be discussed at policy workshops during the three Party Conferences in Glasgow (16 September), Brighton (23 September) and Manchester (30 September). The final report entitled Growth Britain: Unlocking the potential of our SMEs will be published in November.
Notes:
1. Research conducted by Dods amongst 250 companies between 15 July - 23 August 2013 using an online methodology.
2. Santander and Dods will be holding three policy workshops during the Party Conference season to discuss these issues in greater detail with SMEs, policymakers and trade bodies
3. The first event will be held in Glasgow on 16 September in partnership with IoD Scotland and the Glasgow Chamber of Commerce
4. The second event will be held in Brighton on 23 September in partnership with Brilliant Brighton and Coast 2 Capital LEP
5. The final event will be held in Manchester on 30 September in partnership with the Manchester Chamber of Commerce and the Manchester Airport Group
6. The final report – Growth Britain: Unlocking the potential of our SMEs will be published in November
7. For more information contact partyconference@dods.co.uk
8. More information about Santander can be found on the PoliticsHome hub
