We’re all well aware of the ongoing problems in the Eurozone and the impact this is having on business confidence in the UK. However, research has emerged that SMEs in the North East are being put off exporting to the Eurozone for just this reason, despite that exporting has been hailed by the government as a key way for the UK to work out itself out of the recession.
According the Bibby Financial Services, an invoice finance company, 31% of North East businesses interviewed said that the Eurozone issues made them think twice about exporting. 23% said they had never considered this option at all, with 15% worried about financial, cultural and regulatory barriers.
UK trade with EU member states is clearly being impacted by trouble with the Euro, but this evidence that shows it’s a huge factor putting off many businesses is more than worrying. Taking advantage of growth opportunities is essential to achieving growth in any market, and when faced with double dip recession and ongoing economic troubles this is all the more important.
As for the fear of cultural, regulatory and financial barriers, these are things that many businesses have successfully overcome, and indeed there is support available for businesses looking to start exporting for the first time. The UK is a net importer of goods from the EU; in April this year, UK exports to the EU dropped to £11.4bn, a fall of 20% on the previous month.
If your business, based in the North East or anywhere else in the country, is looking to take advantage of export opportunities, then looking to invoice finance for funding is a good first step. You can increase cash flow, allowing room for growth, letting you take advantage of the potential opportunities in the European market.