A new report out this morning estimates that 1.9 million jobs would be created across the UK and businesses could add a third to their revenue if they were able to make a successful transition to new markets beyond the UK.
In Manchester alone, this could see a potential £1.6bn revenue benefit with an additional 45,000 jobs being created. These figures are released today in a new report from Santander UK entitled “Unleashing UK businesses’ international growth potential”.
The report outlines the potential growth for UK SMEs (small and medium-sized enterprises) through international expansion, and the barriers companies face when looking to take their business or products overseas.
UK companies say the main benefits to international trade are an increase in profits followed by a diversified client base, improved business resilience and an enhanced brand.
In separate research, Santander’s Spring Trade Barometer 59% of companies that trade internationally report an improved performance over the past year compared to just 46% of those which do business solely in the UK. They are also more confident about increased growth, with 78% of these companies optimistic about growth over the next three years versus 69% of domestic only businesses.
However, it is clear from our research that businesses can be put off expanding internationally by the perceived barriers to doing so.
The key areas highlighted by businesses in Manchester include a lack of knowledge about local laws and regulations and a lack an understanding of the best financial solution available to facilitate expansion (e.g., the most appropriate available form of credit) as well as challenging trade logistics
John Carroll, Head of International and Transactional Banking, Santander: “The UK is a strong incubator for SMEs, but as our data shows, international expansion is key to unlocking future growth potential for the UK economy.
“We must help to remove the barriers to expansion and support UK companies to take advantage of the benefits of reaching markets outside of the UK. We’ve already assisted over 1,000 UK companies with their global expansion via our network of international specialists, connecting them to distributors, local markets, logistics companies, and many more providers which are now available to even more businesses on our Santander Navigator platform. The opportunity is there but if we are to maintain our status as a leading global economy, there is more to be done to foster international growth.”
