Latest news with #SmallBusinessStrategy
Fibre2Fashion
01-05-2025
- Business
- Fibre2Fashion
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. Fibre2Fashion News Desk (HU)
The Herald Scotland
28-04-2025
- Business
- The Herald Scotland
Scots firms still going global despite trade war challenges
There is of course the supply chain issue, as any belt-tightening by big corporations inevitably leads to less work coming to the smaller businesses who supply them. Read more: Perhaps less obviously, we are already seeing an increase in the problems small businesses are experiencing with late payments. When national and multinational companies get nervous, some unscrupulously use their small business suppliers as a free overdraft and stall on paying what they owe. (A reminder, as if it was needed, of the importance of including a crackdown on this sort of shoddy practice in the forthcoming UK Small Business Strategy.) But, if we're in the market for silver linings, at least the tariff war is making us appreciate the sheer breadth of firms trading on the world stage. Many of these exporters aren't massive multinationals. They're the sort of small and medium-sized Scottish firms at the heart of local communities and economies. Indeed, in recent years I've had the pleasure of seeing a series of small Scottish businesses honoured for their exporting success. Just look the three most recent winners of the Federation of Small Businesses' (FSB) Scottish Award for exporting – all of whom provide a fascinating snapshot of exporting excellence. The Badachro Distillery, which makes delicious small-batch gin and vodka in rural Gairloch, is one of the creative independents helping drive the remarkable growth of Scotland's spirits industry. Read more: Greenock-based PG Paper was started by Dr Poonam Gupta 20 years ago from her spare room. Today, it provides sustainable paper and packaging products to companies around the world. In Aveimore, Quarch Technology provides innovative testing solutions for data storage and networking systems to some of the global tech giants. Superficially at least, you might think that these businesses and their products could hardly be more different. But they're united by a talent for innovation – the priceless ability to spot a gap in the market and to develop products and services which meet the changing demands of customers world-wide. This is something at which small and micro businesses are particularly good. They tend to be much more fleet-footed than their corporate counterparts. That adaptability will stand them in good stead as they face the shockwaves of whatever happens next in the trade war. But it's not enough on its own. Firms also need the confidence and ability to implement these innovations. And there's some mixed messages on that front at the moment. Read more: There are undoubtedly some serious challenges facing small firms. The latest data from our FSB Small Business Index (SBI), for example, shows that the costs crisis facing firms is only getting worse. Almost nine out of 10 Scottish small businesses told us their costs have gone up in the last three months, with utility bills, labour costs and taxes the main drivers. On the other hand, it seems that more of our small businesses can see a way through these challenges. The same survey found confidence in Scotland starting to recover in the first quarter of 2025, albeit from a four-year low at the end of last year. While Scotland's overall confidence score is still in negative territory (-15.29, for the enthusiast), it's about four times better than in the last quarter of 2024 (again, -67.18, for those taking notes). More than two in five small firms plan to grow in the next year, against one in five who predict they'll contract. So, you might need to go looking for them – and they might be pretty fragile when you find them – but there are some signs that can offer us hope. And these signs could be bolstered or trampled into the dust by some of the big decisions in the weeks ahead (and they're not all global trade policy decisions – we need to be careful things like next Tuesday's programme for government from Holyrood don't throw up any unpleasant, expensive surprises). But right now, what this tough period is showing us is that even when faced with worldwide and local challenges, we have the ingenuity, drive and entrepreneurial flair in Scotland to take on the world – and win. Colin Borland is director of devolved nations for the Federation of Small Businesses (FSB).
