Only one in four SMEs trading abroad
RESEARCH has revealed that only 25% of West Midlands small and medium-sized companies (SMEs) are operating in overseas markets.
Despite the fact that the strongest SMES are exporting to generate growth, nearly half (48%) of firms surveyed are focusing predominantly on the West Midlands region with another 25% focusing on the UK only.
The research from the Marketing Birmingham Regional Observatory and the Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP) is based on the responses of 1,700 local businesses.
It examines which SMEs are experiencing the most growth in areas such as turnover and employment, and how this has been affected by factors such as exporting and business support.
It found that SMEs with a UK or international focus are more likely to be growing than businesses consolidating locally. While nearly half (43%) of companies focusing on local markets have experienced a reduction in turnover or staff over the last three years, this is a problem faced by only a third (31%) of SMEs operating in a UK market and just over a fifth (21%) that are trading overseas.
Neil Rami, chief executive of Marketing Birmingham, said: “Many of the region’s most successful SMEs are our most ambitious, looking further afield to find new customers. This has a knock on effect with evidence also suggesting that higher export levels raise the prospect of attracting further inward investment to the region.
“It is clear that smaller businesses wanting to achieve growth in their turnover, and that have the means and ability to approach foreign markets, should consider exporting in addition to strengthening their positions in the UK.”
