The UK’s 4.4 million SMEs provide 60% of the UKs private sector jobs and account for half of all private sector turnover. Our economic recovery depends on small business growth. I believe exporting will drive that much needed growth.
With that in mind, as part of our UK Enterprise Survey 2011, IC AEW sought the views of our members on exporting and how we can further encourage its growth. The results offer three top line recommendations for policymakers.
Firstly, there is a clear link between growth and exporting, particularly for small firms. This reinforces the view that more support and emphasis should be placed on encouraging SMEs to export. Secondly,SMEs looking to export need more information, especially on market intelligence, and details of commercial law. Finally, while existing exporters have recovered well, more needs to be done to encourage SMEs to internationalise to avoid a flatline in export growth.
Currently around 20% of UK SMEs export. This is somewhat lower than our survey would suggest because our membership is more represented in larger SMEs. We know that many more SMEs could benefit enormously from exporting. Whether working in an SME or in practice advising SMEs, IC AEW chartered accountants can help SMEs benefit from exporting, and help them build their capability to export profitably and at low risk.
Succeeding in international markets is a long term challenge but it is vital to rebuilding our economy and restoring economic fortunes.
Michael Izza
In view of the government's initiative to encourage more SMEs to export the relevant findings in the 2011 UK Enterprise Report have been published in a separate report.
Among the finding's are:
- Exporting is good for businesses as the research finds a clear link with business turnover and gross profit growth and exporting.
- Exporting is not linked to business size. With the exception of Micro entities (less than 10 employees) approximately 44 to 50% of survey respondents export regardless of business size.
- The assistance most current and potential exporters would value is market intelligence for particular sectors or countries.
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