London, UK, 5 August 2019 – Sage, the market leader in cloud business management solutions, today releases the UK findings from a survey of 3,000 businesses in 12 countries, highlighting the impact of political uncertainty on trade and exports. Entitled We Power the Nation, Sage uncovers how technology and digitisation impacts three success factors at the core of business today; Trade, People and Productivity.
The first instalment is focused on Trade and reveals that 1 in 4 businesses in the UK have exported products and services in the last year, the lowest rate across all 12 nations. UK businesses call out political uncertainty, differing product standards and uncertainty around jurisdictional compliance as barriers to invest in international trade. The findings follow the World Economic Outlook¹ report, published by the IMF in July 2019, projecting global growth to slow from 3.6% in 2018, to 3.2% in 2019 – with large and rising bilateral trade tensions a contributing factor.
As a result, many UK businesses are calling on the government to remove trade barriers (40%), provide more investment incentives and funding (20%), and provide more support in developing opportunities in international markets (22%).
UK business least positive about trade opportunities for the year ahead
Half of businesses in the UK (49%) expect to increase trade activity over the next year – trailing the 62% global average – whilst around a quarter (23%) expect it to decline. These findings mean that businesses in the UK are by far the least positive about the year ahead, with over a third (34%) calling out increased political uncertainty as the biggest barrier to international trade. The data also suggests that political uncertainty is a greater issue for larger UK businesses, with 41% of this group forecasting political uncertainty as a barrier, compared with 36% of medium sized businesses and 26% of small businesses. This is particularly pertinent, as in the next 12 months almost half of UK businesses are set to prioritise trade with Europe (45%), followed by North America (26%), and Asia (21%).
The other barriers cited by 10% or more of UK businesses are uncertainty surrounding jurisdictional compliance (13%), lack of talent and human resource (13%) and variance in product standards across regions (10%).
Sabby Gill, MD UK and Ireland at Sage, said, “Businesses of all sizes are fully aware of the growth opportunities that exporting can deliver. It is encouraging to see the UK making progress on a trade deal with the US, but this research suggests Europe still remains the priority export market for UK businesses. Today, nearly a quarter of UK businesses expect to reduce the amount of overseas trade they do in the year ahead, the highest percentage across all nations.
“Economies need frictionless trade to grow and we know that everyday business activity is at the heart of this economic growth. In this climate, businesses need to implement export strategies for to ensure the future health of the UK economy and using data and technology to remove bottlenecks and complexity in trade must be a priority for regional and international productivity success.”
UK businesses are more likely to emphasise the importance of national governments addressing and removing the current barriers to trade than international counterparts, with 40% of UK businesses supporting trade policy reforms. This is matched only by Brazil (40%) and contrasts to only 21% of businesses in France also calling for the removal of trade barriers, increased investment incentives and funding along with access to better technology tools.
Key global findings from We Power the Nation include:
We Power the Nation includes the findings of independent research commissioned by Sage and conducted by YouGov. YouGov conducted online research amongst businesses in 12 international markets. Samples in each of the 12 countries were split evenly between small (6-49 employees), medium (50-249 employees) and large (250+ employees) businesses. Initial, 2994 businesses participated in the research between 19th March and 5th April 2019. The data has been weighted to ensure that all countries are represented equally.
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