Member Article

It’s time to shine for Britain’s small businesses

During UKTI’s recent Export Week, 5,000 UK SMEs took part in events across the country, seeking professional advice about exporting opportunities for their business. That’s 5,000 small businesses who believe they have the potential to sell their products and services abroad, flying the business flag for Britain and increasing the chances of sustained economic growth.

This surge in interest was generated by UKTI’s efforts to raise awareness of the commercial potential of British small businesses in the global marketplace. In recent weeks we’ve seen the launch of its Exporting is GREAT campaign and the Export Week festival, featuring the Explore Export nationwide roadshow. Exporting is GREAT alone aims to reach three million individuals and 700,000 businesses across the UK, encouraging them to pick up the phone and speak to a UKTI advisor for expert advice, support and finance.

At Zurich, we couldn’t be more excited to hear the heightened buzz around exporting. There is huge untapped potential among our small businesses, but there remains unease that a lack of advice leaves them feeling exposed, potentially hampering their willingness to take a leap of faith beyond British borders.

Our recent SME Risk Index revealed that nearly a third of SMEs feel there is now more export risk in the current international market than a year ago. More than one in five (22%) say that their business needs more advice and guidance on the risks, exposures and liabilities associated with exporting overseas. One in six (17%) cite the complex regulatory and compliance requirements as another significant barrier.

It’s encouraging to see that UKTI is actively engaging SMEs across the country, dealing with these concerns and equipping them with the tools they need to overcome these obstacles.

And there is clearly a demand to be met. The CBI’s recent SME Trends survey revealed that 33% of exporting firms saw an increase in export orders in the three months to October. Only 19% have seen a decrease in that time, giving a balance of +14%  the highest it’s been since April 2011.

When it comes to managing the extra risks involved, SME owners shouldn’t feel concerned about finding the right insurance policy either – the majority of leading business insurers offer policies to cover exporting risks. However, it is wise to seek advice from a broker on this, who can easily advise on the required covers and potential different areas of exposure associated with key international markets.

UKTI’s recent work has done a tremendous amount to boost SME confidence. While it’s impossible to eliminate all of the risks involved in exporting, insurers and independent advisors must continue to play a crucial role in helping small business owners to prepare for the challenges associated with international expansion. International opportunities await, and now is the time to grasp them.

This was posted in Bdaily's Members' News section by Richard Coleman .