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Businesses that export grow by almost a third in just two years

04 Oct 2012 17:00 GMT

  • Almost a third (29 per cent) of small and medium sized enterprises (SMEs) see a positive impact on their bottom line within just six months of expanding into international markets
  • Over half (54 per cent) said this growth exceeded their expectations
  • An average of 336,000 more people are being employed across the UK as a result of businesses exporting or selling to overseas customers
  • Businesses who have been exporting for more than three years plan on expanding to countries including Hong Kong, India, China and Australia

Businesses generate an average growth of 30 per cent after exporting for just two years, according to new research1 from Barclays.

Carried out amongst 1,500 small businesses in the UK, the research reveals the rapid benefits of exporting, with 29 per cent experiencing a positive impact on their bottom line within just six months of expanding into international markets. Eight in ten (82 per cent) businesses experienced a positive impact on their bottom line after two years of exporting.

The research comes as Barclays recently launched a unique proposition, “Business Abroad”, which provides the tools and know-how that businesses need to instantly start trading internationally with confidence. It offers free access to expert guidance, advice, workshops and tools, as well as discounts on international products and services.

Increasing the number of businesses that export is vital to the recovery of the UK economy and to boosting job creation. 31% of businesses that currently sell overseas have had to employ more people in the UK as a result of their exporting activity. These businesses, on average, have recruited an extra 15 people in the UK each as a direct result of their exporting activity, which equates to around 336,0002 more people being employed across the UK as a result of businesses exporting or selling to overseas customers.

Given the positive impact on the bottom line of a business, it’s not surprising that 31 per cent of those who currently export are planning on branching into new markets in the next year and a further 24 per cent in the next two years. And, with continuing uncertainty in the Eurozone, businesses are looking for export opportunities further afield. Nine out of the top ten countries listed as targets by businesses exporting for three years or more3 are outside of Europe, with Hong Kong, India, China and Australia topping the list.

Beyond business growth, 87 per cent of businesses claim there are other benefits to exporting, including having greater confidence in the longevity of the business (44 per cent), increased productivity (37 per cent), stronger innovation (28 per cent) and a longer lifespan for their products and services (27 per cent).

Steve Cooper, Vice Chairman of Barclays Business Banking said:

“Winning business overseas is a vitally important way for SMEs to prosper and help the economy grow out of recession. Our new research shows that in the challenging domestic market, exporting provides attractive new revenue growth for businesses, boosting the bottom line and supporting job creation.

“We are committed to helping UK SMEs take that step to winning new trade around the world, and have experts in place across the globe ready to lend their support and advice.”

In addition to launching Barclays “Business Abroad”, Barclays is also working with UK Trade and Investment to help small businesses trade internationally – from securing their first international customer to setting up an overseas operation.

Lord Green, Minister for Trade and Investment, said: “Boosting the UK's export performance and supporting the growth of small and medium sized enterprises are key parts of our plan for growth that will help us secure a stronger, more balanced and resilient economy. The Government wants to see a further 100,000 British businesses exporting by 2020 and is committed to helping businesses of all sizes take their products and services to new markets overseas.

"Alongside the support offered by UK Trade and Investment, the Business Abroad proposition launched by Barclays will play an important role in helping British products and services find new markets overseas. I look forward to seeing our partnership deliver real results."

Barclays customer, Sharda Glass was established in 2006 and started trading internationally five years ago, exporting its architectural glass to the USA, Europe and Middle East. Neil Sharda, director and owner said, “I started exporting five years ago and have seen an incredible impact on my bottom line. I first started exporting to Dubai and Qatar, and then a year ago won the contract to supply the new World Trade Centre in New York. As a result of my move into exporting, I’ve been able to move into new, larger premises. I travel abroad regularly, which can sometimes be a challenge to juggle everything, but I believe building good relationships with clients is the key to continuing and growing my business abroad.”

Other findings from the research include:

  • The impact of the move into international markets has surprised many small businesses with 54 per cent saying this level of growth exceeded their expectations. A further 39 per cent said they achieved the level of growth they expected through exporting.
  • 48 per cent of small businesses who export saw an increase in their sales over the last two years, compared to just 30 per cent of businesses who have remained solely within the UK market.
  • 53 per cent of those who are currently exporting see the revenue they generate through selling to customers overseas increasing during the next five years
  • 84 per cent believe that exporting is important to their future business growth
  • Only 23 per cent of small businesses who don’t currently export say they are planning to start in the next five years. A further fifth (21 per cent) are currently undecided as to whether to start exporting

Barclays unique proposition, “Business Abroad”, provides the tools and know-how that businesses need to instantly start trading internationally with confidence. It offers free access to expert guidance, advice, workshops and tools, as well as discounts on international products and services. It is available to all businesses by visiting www.barclays.co.uk/businessabroad and speaking to a Barclays Business Manager.

Barclays is also launching a series of free International Trading Clinics across the UK, supported by UKTI. Taking place throughout October and November, these are aimed at all businesses who would like advice and guidance on trading overseas. To find out more please visit www.barclays.co.uk/businesshub or phone 0845 124 6502 to book a free place.

Notes to Editors:

Case studies of small businesses, photography and interviews with Barclays spokespeople are available.

About the research

1. Research carried out by Vanson Bourne during June 2012 on behalf of Barclays amongst 1500 small businesses (1-250 employees) within the UK. These businesses have a turnover of up to £5 million

2. Current number of UK businesses with 1-250 employees = 1,188,137 (source: http://www.bis.gov.uk/analysis/statistics/business-population-estimates). Assuming around 20% export = 237,627. In the survey, 39% of exporters had employed more UK staff, which is around 92,199 UK small businesses. Extrapolating the survey responses, this equates to around 40,286 businesses employing 1-10 additional employees, 4,276 employing 11-20 additional employees, 1,000 employing 21-50 additional employees, and 190 employing more than 50 additional employees. The midpoints of these answer ranges were then multiplied by the number of organizations who answered each size band, creating a total of 335,666 additional estimated UK people employed solely due to businesses exporting activities.

3. The top ten countries in the world where businesses that have been exporting for three years or more are branching out to

1. Hong Kong

2. India

3. China

4. Australia

5. Canada

6. US

7. Singapore

8. UAE (including Dubai)

9. South Africa

10. Germany

About Barclays “Business Abroad”:

Barclays “Business Abroad” is a one stop shop to help small businesses start trading overseas. The package is grouped into 4 key components:

1. Guidance to navigate global waters

      • Barclays international internet hub providing a wealth of information on international trade
      • 25 per cent discount on export document preparation
      • Enrollment on Barclays International workshop run by UKTI
    1. International payments made easy
      • 25 per cent discount on Barclays incoming and outgoing international payment charges
      • Free currency accounts denominated in the currency of your choice
    2. Keeping track of exchange rate risk
      • Interactive risk calculator
      • Free exchange rate alerts
    3. Guarding against credit risk

· 40 per cent discount on international credit checks

Barclays “Business Abroad” is a one stop shop to help businesses start trading overseas. It offers free access to expert guidance, advice, workshops and tools, as well as discounts on international products and services. To find out more call 0845 301 6308 or visit www.barclays.co.uk/barclaysabroad.


Barclays Business is the business banking arm of Barclays. It has over 770,000 customers with a turnover up to £5m that are a mixture of start ups, sole traders, partnerships and limited companies. We supported a record number of business start ups – over 100,000 new businesses in 2010.

Barclays services to SMEs include:

·         A choice of business accounts that they can tailor to their needs and the provision of up to two years free banking to start-ups, subject to remaining in credit. 

·         Day-to-day business banking support through a team of Business Managers who are available over the telephone for everyday and urgent banking needs. 

·         Free consultations for businesses with a local accountant, marketing expert and solicitor to advise on topics such as the best legal status, how to advertise or draft supply contracts.

·         A free nationwide business seminar and workshop programme. This is designed to help business owners network and gain practical help on relevant challenges such as marketing, trading online or how to generate more business profits. We expect around 12,000 delegates to attend our business seminars this year.

·         Business management software that helps business customers complete their account work quickly and efficiently; support their hiring efforts; help back up their business data securely; and avoid late payment and bad debts.

Barclays Business named Business Bank of the Year at the UK’s National Association of Commercial Finance Brokers (NACFB) Industry Awards December 2011.