SMEs are making a positive contribution to narrowing the UKtrade deficit, according to new research published by FedExExpress, a subsidiary of FedEx Corp. (NYSE: FDX) and the world’slargest express transportation company. The research, released aspart of the second annual FedEx Great British Export Report, showsthat while the overall deficit stands at around ￡2.8billion[1],British small- and medium-sized enterprises are helping tocounteract this. A key finding is that the financial value ofexports exceeds that of imports for Britain’s SMEs:
The average SME exports ￡553k a year to Europe and imports￡535k, an average net surplus of c￡18k for those SMEs exporting toEurope
The average SME exports ￡714k a year outside of Europe butimports just ￡410k, an average net benefit of c￡304k for those SMEsexporting globally
As concerns grow over an ever widening trade deficit, reportsof SMEs’ exporting success will come as welcome news to many. Morethan half (53%) of all British SMEs currently export, and almostthree-quarters (72%) believe their international revenues willincrease in five years.
“British SMEs are a driving force in improving the economy,”says Trevor Hoyle, vice president, Northern Europe Operations,FedEx Express. “The report shows that SMEs recognise how lucrativeexporting can be for their business and as result more are goingglobal, actively helping to reduce the deficit.”
Over the last year, exporting SMEs have gone from strength tostrength and the number of those exporting at least 20 shipmentsper month to Europe has risen from 40% last year, to 69%. Whereasin 2014, 43% of SMEs who exported within Europe exported more than￡5,000 per month on average, this figure has now increased to 64%.The rise in value of exports to outside of Europe was from 37% to57% when measured on the same metric. Hoyle continues, “The SMEs wehelp to go global are talking to us with a real sense of positivityand they understand there’s a whole world of customers out there totap into.”