Research carried out by Venture Finance and Accountancy magazine reveals Small and Medium Enterprise exports have increased over the last three years, according to accountants. The research petitioned 311 accountants throughout the yearly Credit Check report. The increase in exports is believed to be due to weak demand, stagnant growth and the weak pound in the UK.
According to the study, a third of accountants have noticed an increase in export sales from their clients over a three year period, with sales increasing to 30 percent compared to the pre credit crunch days when 20 percent of sales occurred overseas. Over half of the accountants surveyed believe that the increased activity in exportation is due to a stagnant UK economy. Weak demand for consumer products and services is thought to be the cause by 41 percent. Overwhelmingly, 64 percent believe that the weak pound is to blame for increased activity overseas.
The managing director of Venture Finance, Peter Ewen said:
“As SME confidence increases, a sluggish home economy has encouraged companies of all sizes to explore new revenue streams and opportunities for growth further afield.”
However, Mr Ewen also states that moving into exportation can be a daunting process with many challenges, but as the UK economy is presenting difficulties, businesses will seek revenue elsewhere, which increasingly means looking overseas. The advice given is to seek professional advice before moving into export sales, carrying out extensive research to ensure you succeed.
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Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.