Businesses expanding internationally could create 1.9m UK jobs

By Nicky Godding

17 July 2023

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An estimated 1.9 million jobs would be created across the UK and businesses could add a third to their revenue if they were able to make a successful transition to new markets beyond the UK. These figures released in a new report from Santander UK entitled “Unleashing UK businesses’ international growth potential”.

The report outlines the potential revenue growth of £93.5 billion for UK SMEs (small and medium-sized enterprises) through international expansion. It also outlines the barriers companies face when looking to take their business or products overseas.

UK companies say the main benefits to international trade are an increase in profits followed by a diversified client base, improved business resilience and an enhanced brand.

In separate research, Santander’s Spring Trade Barometer, 59 per cent of companies that trade internationally report an improved performance over the past year compared to just 46 per cent of those which do business solely in the UK. They are also more confident about increased growth, with 78 per cent of UK companies optimistic about growth over the next three years versus 69 per cent of domestic only businesses.

But businesses are often put off from expanding internationally by the perceived barriers to doing. The key areas highlighted include a lack of knowledge about local laws and regulations, a lack of understanding of the best financial solution available to facilitate expansion and complex trade logistics.

John Carroll, Head of International and Transactional Banking, Santander, said: “The UK is a strong incubator for SMEs, but as our data shows, international expansion is key to unlocking future growth potential for the UK economy.

“We must help to remove the barriers to expansion and support UK companies to take advantage of the benefits of reaching markets outside of the UK. We’ve already assisted over 1,000 UK companies with their global expansion via our network of international specialists, connecting them to distributors, local markets, logistics companies, and many more providers which are now available to even more businesses on our Santander Navigator platform. The opportunity is there but if we are to maintain our status as a leading global economy, there is more to be done to foster international growth.”

Many UK businesses are looking to international trade as a means of economic recovery and a way out of current UK economic challenges, with more than half questioned saying that they believe international markets have greater growth potential than that of the UK.

By Nicky Godding

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe.

After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts.

She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.