Statistics recently released by WorldFirst have revealed that the number of SMEs that are trading internationally is steadily declining. The figure dropped to 1.5 million last year, just half of what it was in 2016.

Perhaps it’s a lack of funding or concerns over the state of the foreign economy thanks to speculation over Brexit that is leading many SMEs to take a step back from trading internationally.

Sadly, a decline in trading could mean a fall in productivity and profits for SMEs as the benefits of exporting goods globally and significant. Read on to find out more about how trading on a global scale can benefit your business.

Spreading the risk

When your business only operates in one marketplace, you leave yourself in a fairly vulnerable position. Negative conditions, economic downturns and market changes are all things that can have a damaging impact on your business. If you choose to export to other markets though, you are spreading this risk and allowing your business to benefit from more productive markets overseas.

The chance to learn about new skills and technology

If you want to grow and develop your business, it is crucial that you are constantly open to learning about new skills and technology. Trading in an international marketplace opens your business up to a wealth of experience and ideas and gives you the chance to engage with different perspectives and ways of doing things.

Learning to adapt to and adopt these new skills is going to give you a competitive edge over your competitors, which will in turn help your business grow and become more profitable.

Boosts profitability

While being innovative and learning new skills is important for SMEs, the bottom line is, well, your bottom line. Luckily, research conducted by The World Trade Organization has found that SMEs that do export internationally to sophisticated foreign buyers are 26% more profitable than those that don’t. Surely this is a good enough reason to start exporting overseas, right? 

Extended product life cycle

When you choose to sell your products on a global scale, you extend the average product cycle of launch, growth, maturity and decline. This can also help you with new product development.

Are you hoping to start trading internationally but are worried about securing the appropriate finance to do so? Check out our website to find out about the financing options that we have available.