Even though the British Sterling is dropping in value, SMEs within the UK are already investing more in exporting for future trades.
During the past 12 months’ enterprises investing in deals overseas has near enough doubled, this has been shown through the latest SME Confidence Tracker conducted by Bibby Financial Services.
The Tracker follows the sales performance of SMEs within the UK as well their intentions to invest and their confidence in doing so. The report found that during the third quarter of 2016 15% of SMEs invested in exporting compared to just 8% the year before which shows an increased thirst for exporting within the smaller businesses of the UK.
Compared to the second quarter of 2016, 22% of manufacturers, an increase of 15% revealed that they had invested in trading overseas.
Global chief executive for Bibby Financial Services, David Postings commented;
“It’s clear that SMEs want to get back to business after an unsettled first half of the year and it’s encouraging to see more SMEs looking overseas to unlock growth,”
With the sterling decreasing, 51% of UK SMEs fear that the threat to their business over the next year is very significant although the pound is weak which means there are more opportunities for exporters.
“While many SMEs are concerned about the falling pound, we’ve seen a range of positive data over the summer that show a resilience in the UK economy. Many firms are now taking advantage of the fall in sterling to build their export capability, particularly those who manufacture within the UK.”
“Much rests on the Government’s trade negotiations both within and outside of the UK but for the time being, the businesses we speak with tell us their priorities are to get on with their jobs and put their capital to work during the final months of the year.”
Head of Businesscomparison.com, Philip Brennan shares his opinion;
“Exporting is generally good for bringing money into the economy, and with a weak pound it means goods are cheaper for people to buy in other countries, so hopefully this will mean further competition which will also make this a great time to start or continue exporting!”