Export fears hampering global growth

Small businesses are ruling out overseas opportunities due to perceived market barriers and therefore limiting their international growth, new research from Parcelforce Worldwide has revealed. The ‘Barriers to Export’ study shows that almost half (43%) of non-exporters believe they could increase revenues by exporting in just twelve months. Of these businesses, 46% believe exports could boost revenues by more than 10% in the coming year.

Yet despite this growth potential, 84% of non-exporters have no plans to investigate foreign trade opportunities anytime soon due to overblown concerns and perceived barriers.

Parcelforce Worldwide’s research shows: one in four (24%) non-exporters believe exporting would be prohibitively expensive; one in three (32%) non-exporters claim they wouldn’t know which export markets to target; 35% of non-exporters perceive their goods to be unsuitable for export; and more than half (53%) of non-exporters don’t think they have the on-the-ground resources or marketing needed to make exporting effective.

In contrast however, the research suggests that the realities experienced by exporting firms are very different, with the perceived barriers rarely preventing them from achieving success: despite the recession, 17% of exporters began exporting within the last two years; 42% of exporters are enjoying long-term opportunities, having exported for more than 10 years; almost half (46%) of exporters now get 40% or more of their revenues from exports; and one third of these only started exporting within the last twelve months.

The study also reveals that 22% of non-exporters agree that access to more advice and support or greater certainty over delivery would increase their willingness to export.

Parcelforce Worldwide says it has teamed up with UK Trade & Investment (UKTI) to launch a new export guide for growing businesses. ‘Overcoming Barriers to Export’ provides an introduction to international trading, the costs and charges involved, key industries and markets to target, as well as how to negotiate risks along the way.

Susan Haird, acting chief executive of UK Trade & Investment, said: “There are so many opportunities and sources of support to help UK companies to gain an overseas foothold. There are particularly exciting opportunities in emerging economies and I would encourage firms of all sizes to think globally rather than just to more traditional export markets like Europe and the U.S. I hope this guide will help.”

Simon Batt, international director of Parcelforce Worldwide, said: “We’re always surprised to see the number of companies that have the appetite to export but feel they don’t know where to start. Parcelforce Worldwide is helping them move into international trade with confidence by adding to our existing suite of cost effective international services and working with UKTI to provide them with a practical export blueprint.”

Emma Jones, author of export resource ‘Go Global’ and a consultant on the export guide explains: “International trade has moved into a new phase. No longer are years of domestic effort required before going global. You can now start a company on Monday and be trading with the world by Wednesday. ‘Overcoming Barriers to Export’ and ‘Go Global’ should be essential reading for all aspiring businesses that wish to grow profits amidst a challenging economic climate.”

‘Overcoming Barriers to Export’ is available for from both Parcelforce Worldwide and UKTI websites.