Surge in UK SMEs' export focus but barriers continue

: Tuesday, 8 April 2014


Tuesday 8th April 2014

UK SMEs are placing an ever growing importance on overseas sales, with a 35% leap in the share of their products being directed to overseas markets over the last five years.

While an estimated 34% of sales among SMEs with an international capability now come from international markets, many still worryingly admit to a lack of understanding on exporting regulations and have identified a string of barriers which are potentially inhibiting their export activity.

These are among the headline findings from a new survey of UK SMEs released this week by TNT Express, the leading business-to-business express delivery company, to coincide with UKTI’s Export Week 2014.

SMEs surveyed, who identified a potential for exporting, cited dealing with foreign admin/governmental requirements (28%), understanding foreign business practices (26%) and understanding export/customs regulations (24%) as the biggest barriers to trading more overseas.

Discussing the research findings, Alistair Cochrane, Managing Director of TNT Express UK and Ireland, said: “Against an improving economic picture it’s great to see that UK SMEs are finding success overseas, but what is also clear is that if they can be supported in better understanding issues around the rules, regulations and administrative requirements involved, they could grow their exporting business even further.

“The survey clearly identifies the role expert stakeholders such as transport providers can play in providing insight and guidance to demystifythe export process and support SMEs across the UK to establish reliable export capabilities which allow their businesses to grow to their full potential.”

According to the research, which surveyed companies with an annual turnover below £50m, 34% of sales are today being directed overseas by SMEs with an international potential, compared to just 25% in 2009. (Representing a 35% uplift on 2009 figures).

One in six (17%) admitted to lacking the understanding on export regulations to handle their own customs arrangements confidently, while 56.8% said they rely upon a transport provider to handle this on their behalf.

As part of Export Week (7th – 11th April),TNT Express is partnering with UKTI to provide advice and guidance direct to SMEs at seven regional road-shows and events across the country