US Isn’t UK SMEs’ Top Export Destination Anymore

Exporting to the U.S. has always been a lucrative priority for SMEs across many jurisdictions, including the U.K. But according to the latest figures, small businesses aren’t doing the most business with U.S. buyers anymore.

Instead, China has reportedly taken over as the most popular destination for U.K. small business exports. That’s according to new analysis from Western Union Business Solutions, which found that, last year, just 9 percent of U.K. SMEs said they exported to China.

This year, however, that figure jumped to more than 25 percent, surpassing exports to the U.S. China is now the second most important market for these businesses, reports said on Tuesday (Dec. 22), behind Europe, to which 76 percent of U.K. small businesses export.

[bctt tweet=”Last year just 9% of UK SMEs said they export to China; this year, it’s 25%.”]

“It’s encouraging to see this research from Western Union Business Solutions showing many small and medium-sized businesses shifting focus towards emerging growth markets such as China and India,” said U.K. Federation of Small Businesses (FSB) National Chairman John Allan.

He added, however, that some of the smallest businesses remain in their comfort zone, exporting to more familiar jurisdictions.

“Our own research shows 82 percent of FSB members export to EU countries,” Allan said. “This suggests there is still a long way to go to unlock the export potential to these emerging markets.”

Western Union Business Solutions found that the majority of SMEs surveyed are upping the number of countries to which they export, with U.K. small businesses exporting to an average of 2.7 countries.

These businesses also see 27.2 percent of revenue from these exports; reports noted, however, that that number is expected to jump to 40 percent, as exports are expected to rise in the next year.

Other analysis revealed that while U.K. SMEs are optimistic about the economy, more than 60 percent still reported having trouble accessing working capital, with nearly half reporting being negatively impacted by currency fluctuations this past year.