A new study suggests that small and medium-sized enterprises (SMEs) that take steps to internationalise their trade can typically expect to enjoy higher turnovers and greater productivity than their UK-only counterparts.
However, despite this, only a fifth of SMEs based in the UK currently export their offerings overseas – while only 17 per cent currently do businesses with other, non-UK firms.
The research, which was carried out by the International Business and Economics Research Group (IBERG) at Sheffield Hallam University, suggests that many UK SMEs are missing out on potentially lucrative international opportunities.
The study also highlights significant differences in business ambition across different regions of the UK.
It found that business in London and South East England were the most likely to explore export and international trade opportunities, closely followed by firms operating in Wales, Humberside and Northern Ireland.
In terms of various business sectors and industries, it found that 60 per cent of SMEs in the business services sector currently export their output.
However, surprisingly, British manufacturers ranked as the least likely group to export their products – with just six per cent of manufacturing respondents currently taking advantage of overseas trade arrangements.