Businesses generate an average growth of 30 per cent after exporting for just two years, finds research.

Businesses generate an average growth of 30 per cent after exporting for just two years, finds research.

According to a study from Barclays of 1,500 UK small and medium-sized enterprises (SMEs), 29 per cent experienced a positive impact on their bottom line within just six months of expanding into international markets.

Nearly a third (31 per cent) of businesses that currently sell overseas admit they have had to employ more people in the UK as a result of their exporting activity.

These businesses, on average, have recruited an extra 15 people in the UK each as a direct result of their exporting activity. This includes many smaller SMEs employing a few extra members of staff, and a small number of fast-growing businesses taking on much larger numbers. 

This equates to an estimated average of around 336,000 more people being employed across the UK as a result of businesses exporting or selling to overseas customers.   

Some 31 per cent of those which currently export are planning on branching into new markets in the next year and a further 24 per cent in the next two years.

With continuing uncertainty in the Eurozone, businesses are looking for export opportunities further afield.  Nine out of the top ten countries listed as targets by businesses exporting for three years or more are outside of Europe, with Hong Kong, India, China and Australia topping the list.  

Beyond business growth, almost nine in ten (87 per cent) businesses claim there are other benefits to exporting, including having greater confidence in the longevity of the business (44 per cent), increased productivity (37 per cent), stronger innovation (28 per cent) and a longer lifespan for their products and services (27 per cent).  

Steve Cooper, vice chairman of Barclays Business Banking says, 'Winning business overseas is a vitally important way for SMEs to prosper and help the economy grow out of recession. Our new research shows that in the challenging domestic market, exporting provides attractive new revenue growth for businesses of up to a third, boosting the bottom line and supporting job creation.'

See also: Government gives SMEs exporting opportunities