UK mid-sized firms eye global growth despite trade woes: BDO
Nearly one in three UK mid-sized businesses are prioritising overseas expansion or exports in the next 12 months, despite ongoing global trade challenges, according to new research from BDO.
The survey of 500 business leaders reveals that 32 per cent of firms are actively planning international growth strategies, with 37 per cent expecting to increase exports—rising to over 50 per cent among retail, wholesale, and technology sectors.
Target markets include Africa (35 per cent), Australia (38 per cent), and Asia (30 per cent), while 41 per cent plan to boost exports to the European Union in 2025.
The findings highlight a resilient push for growth among the UK's mid-sized firms, which generated £1.6 trillion (~$2.144 trillion) in turnover last year. Firms are taking proactive steps to navigate supply chain disruption and new tariffs by developing alternative routes into international markets.
However, barriers remain: 35 per cent of respondents cited skills shortages in export and supply chain operations, and 30 per cent flagged weakened consumer demand as a key challenge—climbing to 43 per cent for manufacturers.
"Although conditions remain challenging, the UK's mid-sized businesses are highly ambitious and have their sights firmly set on driving growth. Generating £130 billion (~$174.2 billion) in revenue from overseas trade alone last year, these businesses are the strongest engine for our economy, Richard Austin, partner at BDO said in a release.
Despite mounting pressures, 95 per cent of businesses are hopeful about the UK government's upcoming Small Business Strategy. Among them, 23 per cent are calling for simplified customs procedures and stronger export support, including increased funding through UK Export Finance and the British Business Bank's Growth Guarantee Scheme.
"The forthcoming Small Business Strategy is one of many major opportunities for the government to provide targeted support for the mid-market, simplify regulation and enable mid-sized businesses to deliver their plans for growth – all of which will be vital to boosting our economy," Austin added.
Nearly one in three UK mid-sized firms plan overseas expansion despite trade challenges, said BDO. With $174.2 billion in export revenue and $2.144 trillion in turnover last year, 37 per cent aim to grow exports, especially to the EU, Australia, and Africa. Most support the government's upcoming Small Business Strategy, calling for reduced red tape and better export aid.
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