Europe’s
smaller companies are bullish about growing their exports in the coming
year, according to a survey commissioned by UPS of 10,717 owners and
directors of small and medium-sized business (SMEs) in seven European
countries (Belgium, France, Germany, Italy, the Netherlands, Poland, and
the UK) across the automotive, healthcare, high tech, industrial and
retail sectors.
The
results show that confidence in European export growth is improving,
with 90 per cent of SMEs expecting export business to be stable or
growing. The UK’s SME exporters are more optimistic than the average,
with 42 per cent of companies expecting export volumes to grow and 45
per cent expecting them to hold stable. The report also shows that
exporting is strongly associated with higher overall revenue growth for
SMEs, and that Europe is seeing very rapid adoption of online commerce
among SME exporters. The UK has the highest proportion (61 per cent) of
SME exporters reporting higher revenues over the last three years, and
almost the lowest proportion (11 per cent) reporting lower revenues. The
UK’s SMEs are also the second most likely to use online channels for
exporting (70 per cent of companies) – only the Netherlands has a higher
proportion of SMEs exporting online (74 per cent).
“Exporting
SMEs in Europe are maturing rapidly,” says Cindy Miller, president, UPS
Europe. “SMEs in Europe are now primarily concerned about more
practical issues, such as the physical safety of shipments, concerns
that logistics partners can help solve in order to reach international
markets.”
In
the UK, where 1,101 companies were surveyed, 17 per cent of SMEs say
that they are already exporting – only German SMEs have a higher
tendency to export (18 per cent). The study shows that the UK is highly
‘export positive’ – SMEs in the UK are among the most positive on future
prospects, they export to diverse destinations outside of Europe, and
they are highly likely to trade online. The UK is the most likely of all
countries surveyed to export to the US, and UK SMEs have an above
average rate of exporting to Africa, Asia including China, and the
Middle East. Exporting SMEs in the UK are also more likely than most
others to ship to consumers – only Germany is more consumer-focused.
One
characteristic that UK SMEs do share with most of Europe is that they
are likely to enter export markets primarily due to customer demand.
Overall the study suggests that most European SMEs are ‘passive
entrants’ to exporting – companies in Belgium, France, Germany and the UK all reported that customer demand was the main driver for beginning to export.
“European SMEs are increasing their exports and expanding to new markets as they continue to grow their business,” says
Cindy Miller of UPS Europe. “What is remarkable is that it’s their
customers who often push them to start exporting. Perceived and real
export barriers are holding many SMEs back until customers contact them
for an export order. European SMEs are benefiting from export
opportunities, especially in times of booming e-commerce.”
The SME Exporting Insights Study 2015 concludes that exporting is becoming more important to Europe’s SMEs, and to Europe’s overall growth. The study says that the
European SME export sector is maturing, while exporters are adopting
new technologies, gearing up for growth, and looking for innovative ways
of doing business, and adds that those trends are likely to continue
and strengthen in the coming year.
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