Research put together by specialist lender Wyelands Bank, shows that the number of SMEs (small and medium sized companies) that conduct international trade is twice the official estimate. Around one in three companies are importers or exporters according to the report, while official estimates are just over one in ten.
Data analysis
The study analysed information provided by the United Nations (UN), the European Commission’s data service Eurostat, and the Organisation for Economic Co-operation, says that SMEs are doing more than previously understood to assist the relatively weak trading performance of the UK.
The figure of approximately one in three companies is “closer to the actual picture” of the reality of small business trade in the UK, according to Wyelands. The company attributes the accuracy of its figures, particularly when compared with the government’s data, to the fact that it analysed more sources.
Exporting success
The most successful companies in terms of exporting include small businesses in the manufacturing, retail and professional services sectors, according to the research.
Iain Hunter is the CEO for Wyelands Bank. He said: “This reinforces our belief that small and medium-sized companies are vital to UK trade. Smaller, more innovative companies, especially in manufacturing, play an important part in the UK’s capacity to form a part of global supply chains.”
Trading partners
Europe is still Britain’s biggest trading partner for exports (46%), while North America is responsible for 17% and Asia-Pacific for 7%. More than anything else, the research clearly shows the dependence of the UK’s economy on trade.
In 2016 alone, the UK important goods worth $678.1 billion, and exported goods worth $433.5 billion. The most important sectors in terms of British exports of goods include pharmaceuticals, manufacturing and aerospace.
Vital to the economy
The research backs up the fact that SMEs are absolutely vital to the economy in the UK and will continue to be post-Brexit. For advice and information on the financial aspects of setting up a small business, or for expert help on the development of your business plan, contact the team at Turner Little.
About Turner Little
Founded in 1998 in Yorkshire, UK, Turner Little is a specialist UK and offshore company formation, banking and corporate services provider. Our services include company formation, UK and offshore banking, asset protection, credit correction/repair, trademarking and trusts. Other services include Internet services, mail forwarding, wills and probate. Turner Little’s vision is to offer the best possible service, together with market leading products.
