Around a third of Britain’s exporting SMEs believe that the international export market is riskier than it was last year.
Zurich’s latest quarterly SME Risk Index report shows that just 27 per cent of exporting actively review potential export risks more than once every six months, and 17 per cent never do so at all. The risk, says Zurish, is that you could expose yourself to severe business interruption. Why aren’t some businesses exporting? The Index shows that 12 per cent of SMEs who do not export, say that international expansion is too big a risk for their business. An additional one in six cite the complex regulatory and compliance requirements as a barrier to exporting. Over one in five (22 per cent) SME decision makers say that their business needs more advice and guidance on the risks, exposures and liabilities of exporting. A third (35 per cent) of respondents, whose businesses aren’t exporting, one of the three main barriers is a lack of desire to expand abroad, and 13 per cent are still working on establishing their business in the UK. The findings come as the Office for National Statistics reports that the UK trade deficit stayed above £3bn in both July and August this year. “The global risk environment is increasingly complex, which may be why nearly a third of SMEs feel there is now more export risk in the current international market than a year ago,” says Richard Coleman, SME director at Zurich Insurance. “t is a real concern that so many SMEs feel they can’t access the right advice. While it’s impossible to eliminate all of the risks involved in exporting, insurers and independent advisors – in addition to UKTI and other key stakeholders such as the British Chambers of Commerce – must all play a crucial role in supporting SME owners with enough knowledge to prepare for the challenges associated with international expansion. “This will be critical to giving many more UK SMEs the confidence to move beyond British borders and into the global marketplace, flying the business flag for Britain and increasing the chances of sustained economic growth.”
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.