Small to medium-sized enterprises’ (SMEs) export potential is being hampered by their access to finance, according to the latest research.
The research, conducted by the UK’s export credit agency, Capital Economics for UK Export Finance (UKEF), indicated that more than half of all SMEs have stated that finance is a key obstacle to exporting.
As overseas demand for British goods and services increases, UK companies should be capitalising on the opportunity to export, but instead, small to medium-sized enterprises (SMEs) are being restricted because of lack of finance.
YouGov surveyed more than 1,000 UK SMEs for UKEF, finding that businesses with purely domestic customers reported annual growth of 8.4 per cent over the last five years, whereas this increased to as much as 15.2 per cent for export firms.
Also, 42 per cent of SMEs found that exporting had increased profits by up to 20 per cent and almost one in 10 (nine per cent) say it has increased profits by over 20 per cent.
However, figures revealed that one in five small business owners believe they could export but do not, a key factor being that 60 per cent of potential exporters do not have access to finance.
Louis Taylor, CEO of UK Export Finance, said: “The right finance and insurance can make all the difference for a company that is looking to sell overseas.
“There’s a wide range of specialist support on offer from both private sector providers and from UK Export Finance working with private sector providers, and we’re here to help UK companies access that support and realise their global ambitions.”
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