Scottish businesses are ambitious for international growth and see exporting as key to their success.
New research released today from the Institute of Export and International Trade and Alibaba Group UK has revealed that 80% of Scottish businesses are currently exporting.
More than three quarters (77%) of the business owners surveyed also expect their export sales to increase in the next 12 months, while nearly a third (30%) expected a 'significant increase' in sales.
A further 79% of businesses in Scotland said exporting had boosted their revenue, with the same amount stating that exporting had made their business stronger and 81% said exporting had fuelled innovation within their companies.
Just over three quarters of those surveyed had increased their headcount as a result of exporting, with 79% stating that it had relieved the pressure of doing business in the UK.
Scottish businesses cited China as the market which presents the biggest export opportunity (29%), followed by North America (29%) and the Middle East (28%).
The European Union, meanwhile, was identified as one of the markets with the least export potential (22%).
Despite the positive outlook, many businesses perceive challenges that could stand in the way of their export ambitions - including:
- price competition (22%);
- trademark registration and intellectual property protection (22%);
- lack of exporting expertise (21%);
- supply chain and logistical issues (21%); and
- lack of cultural awareness and familiarity with overseas market (20%).
For businesses focused on international growth, 81% of those surveyed are currently using online marketplaces to boost their export sales. Almost a third (30%) started working with a marketplace during the pandemic.
Roland Palmer, general manager for the UK, Nordics and Netherlands at Alibaba Group, commented: “We’ve seen worldwide demand for the quality and heritage of Scottish products – particularly from the food and drink sector where there is significant potential for growth.
“By trading overseas, even small businesses can expand, creating more job opportunities and economic growth.”
Marco Forgione, director general of Institute of Export and International Trade, added: “This research confirms what we have long known - that exporting firms are more sustainable, profitable and resilient - but also sheds light on some of the many challenges that prevent businesses from exporting at all or exporting as much as they could.
“The whole trade community needs to work together to combat and reduce these challenges.”
The research was conducted by Censuswide, among a sample of 3,011 UK business owners of companies offering ‘goods’ rather than ‘services’, with more than two employees and a revenue of more than £1m, during late February.
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