South East: Domestic market holds most growth hope for SME sector, says Close Brothers

Almost two thirds (60%) of small and medium-sized businesses in the South East believe that the domestic market represents the greatest growth potential for their business, according to a new survey.

Just 14% cited the European Union as having the most growth potential for them, and 16% said that they have set their sights on exporting to the Middle East and Asia.

The figures are drawn from the latest Close Brothers Business Barometer, a quarterly poll that seeks the opinion of SME owners and senior management on a range of issues that affect their business.

Mike Randall, CEO of Close Brothers Asset Finance, said: “It’s interesting to learn that despite the government’s work to encourage UK businesses to export in an effort to rebalance the economy, so many seem hesitant to look further afield to achieve their potential.

“Almost half of those surveyed in the South East by our Business Barometer said that they export their products or services. A fifth said that they don’t see a need to do so. However, if the UK is to hit the government’s £1 trillion exports target by 2020, then businesses may need to step up their efforts to attract opportunities and secure exports in faster-growing emerging economies.”

The Close Brothers Business Barometer also asked local businesses how they finance their exports. 22% said bank overdraft and a fifth use asset finance.

Randall added: “There’s no reason why small firms shouldn’t aim at the export market to achieve growth. Recent figures from UK Trade & Investment* demonstrate that businesses that export are on average 34% more productive and 12.5% more resilient than businesses that don’t.

“If suitable finance is the main barrier, then it needn’t be. Asset finance offers a cost-effective and efficient way to invest in your business to ensure it has the tools it needs to meet the demands of an export strategy.”