High trading costs 'deterring UK SMEs from expanding internationally'

Three quarters of UK small and medium-sized enterprises (SMEs) have scrapped plans to expand their business internationally as a result of rising trading costs, a survey has found.

26 Apr 2023

Three quarters of UK small and medium-sized enterprises (SMEs) have scrapped plans to expand their business internationally as a result of rising trading costs, a survey has found.

The survey, which was commissioned by currency solutions platform HedgeFlows, cited a lack of resources and training as barriers to international trade for UK small businesses. 68% of SMEs polled stated that their business lacks the technological infrastructure needed to trade internationally, whilst 72% said their business doesn't have the ability to manage foreign payments.

An additional 65% of SMEs surveyed revealed they lack the financial expertise that would be required for international expansion.

Commenting on the research, Neh Thaker, Co-Founder of HedgeFlows, said: 'SMEs are the beating heart of the UK economy, creating jobs and driving crucial growth in uncertain times. It's absurd that so many of our most ambitious and fast-growing businesses feel unable to expand internationally due to a lack of support and access to the tools they need to grow.

'The time has come to equip SMEs with a level playing field to expand internationally, giving them access to a suite of services required to manage overseas transactions, currency conversions and cashflows.'

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