Whether you voted “remain” or “leave”, Brexit is a reality, and in many respects, it constitutes a valuable opportunity for UK SMEs. Less than 20% of UK-based SMEs currently export their goods and services, in fact the South West region is the 4th lowest region in the UK for exporting activity, followed only by Northern Ireland, Wales, and the North East. So why is this?
The US and Europe make up the bulk of the UK exports, and the truth is, as a nation we have become heavily reliant on these territories as they present the least cultural issues, fewer language barriers, cost effective trade (in the case of the EU, free trade), and their political environments are relatively stable. However, the GDP growth in these nations is predicted to be virtually static at below 2%, whereas emerging markets such as China, Indonesia, Ghana, Vietnam, and India, forecast GDP growth of over 5% and as high as 7.5%. Furthermore, driving consumer spending in these markets is an up and coming “middle class” with significant disposable income and a desire for the finer things, the label “Made in Britain” is considered one of these finer things.
Whilst UK SMEs should not underestimate the potential cultural, language, and political issues exporting to these territories might entail; failure to consider them as part of an export strategy is short-sighted at best, and damaging at worst.
The market research and regulatory / standards requirements for entering these territories can seem daunting even to a seasoned exporter, but they needn’t be. The Export Department can provide assistance in the form of exporting advice and mentoring, right the way through to market research and full market launch activity. See our full range of exporting services here and contact us for more information.
There is a world of opportunity out there, you should be too. Let us get you exporting?