Two-thirds of London SMEs have their sights set on new markets, compared to just over half across the UK as a whole
Two-thirds (66 per cent) of London small and medium enterprises (SMEs) plan to venture into new markets in the next two years.
In a survey of over 1,000 British SMEs released today by Albion Ventures, more than half (58 per cent) of SMEs across the UK as a whole also said they planned to step outside of their current marketplace in the next two years, although those in Wales (50 per cent) had the weakest appetite for such expansion.
“The search for new markets among small businesses is gathering pace with much of the effort focused outside the UK,” said Patrick Reeve, managing partner at Albion Ventures. “Given the EU’s continuing economic travails, it’s of little surprise that other overseas markets are proving more popular.”
Those in the manufacturing sector are most keen to head out into new markets, with 75 per cent saying they planned to do so.
However, those who have already made the move advised caution, with over half (52 per cent) reporting problems with their new market efforts. Key issues cited were lack of expertise (13 per cent), excessive red tape (13 per cent) and strong competition (12 per cent).
Reeve added: “Breaking into new markets is easier said than done and all too often small firms lack the necessary expertise to overcome established competitors.”