A survey of West Midlands SMEs conducted by YouGov for the KPMG professional-services group has found that 30% of small firms in the region have no interest in exploring overseas markets.
It also found that 32% of businesses see the legal requirements of dealing with overseas markets as the biggest challenge to their overseas expansion plans, followed by a lack of funds (22%), not having strong enough networks with overseas organisations (21%) and a lack of tax incentives (21%).
Stephen Craik, ‘enterprise leader’ in the Midlands for KPMG, said: “It is not surprising that SMEs in the West Midlands who have survived the global recession are choosing to focus solely on the domestic market in the UK, but this is short-sighted, given the huge appetite for British goods and services abroad.
“Making the leap into overseas markets is not nearly as daunting as it seems on paper. There are some great success stories of SMEs in the region that have achieved massive growth by successfully expanding into overseas markets, particularly in the region’s dominant manufacturing and automotive industries.
"‘Linking in’ with organisations that run trade missions overseas or have good networks abroad is the first step on a journey that is not nearly as complex as SMEs believe it to be — and the rewards can be huge.”
Paul Noon, West Midlands regional director of UK Trade and Investment, said: “Managing risk is clearly a key business consideration for companies looking to export. Through UKTI’s extensive overseas network and range of professional partners, we aim to give firms the information and guidance needed to reduce these risks and enable them to break into new markets.”