A new study suggests that many small and medium-sized enterprises (SMEs) are holding back from exploring international trade opportunities, as they fear that their products and services do not have ‘international potential’.
According to the latest SME Confidence Tracker from Bibby Financial Services, approximately 66 per cent of SMEs currently only buy and sell their products and services on a domestic basis.
Of these businesses, 40 per cent claim that they have ‘no interest’ in exploring export opportunities, while 28 per cent simply feel that the goods and services they specialise in have no ‘international potential’.
With Brexit on the horizon and political uncertainty having a knock-on effect on business confidence, as evidenced by separate research, Bibby’s survey also reveals that only 10 per cent of SMEs are thinking about exploring export opportunities in the months ahead.
The findings come at a time when separate research suggests business confidence fell by 12 points among London SMEs last month, while confidence among businesses elsewhere in the UK remained at the same level as in March.
According to Lloyds Bank’s latest Business Barometer, “economic concerns” are beginning to grow among the nation’s SMEs.
However, almost a quarter (23 per cent) of businesses now believe that Brexit will have a positive – as opposed to negative – impact on their day-to-day operations. This figure is up three per cent on the number of businesses that said they thought the same last month.