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Small firms widen their horizons

[ November 7, 2023   //   ]

Small and medium sized British businesses are increasingly turning to global markets as the domestic financial situation worsens, says DHL Express in new research published to coincide with International Trade Week.

Nearly two thirds (60%) of exporters said they plan to grow sales internationally over the next year, with over half (55%) stating that economic conditions in the UK affected how much their business exports to international markets. Only one in ten said they don’t plan to grow their exports. 

This suggests that UK trade deals have taken on new significance in the aftermath of Brexit.

The general mood among exporters is positive, says DHL, with 83% feeling confident about expanding into other markets.

The top five target markets are the US, Singapore, Australia, Japan and Hong Kong.

Of the SMEs aware of the UK’s new Free Trade Agreements such as those with Singapore and Australia, 52% are planning to grow exports in the new markets. 

Some challenges remain. The top three barriers to growing business through exporting were identified as; new costs post-Brexit such as custom charges, understanding the regulations and customs of each market, and undertaking the paperwork and logistics required to export. However, many of these issues can be reduced or removed under an FTA. 

While only a small proportion of businesses are currently selling overseas via social commerce platforms  such as Instagram Live Shopping and Tik Tok Shopping, this looks set to grow, with the research indicating that soon one in four businesses will be leveraging these platforms for global transactions. 

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