The proportion of microbusinesses exporting goods and service grew last year to 46%, up from 39% in 2021 (microbusinesses are those with nine or fewer employees).
Research by the Department of Business and Trade also found that four out of 10 SMEs (up to 250 employees) exported last year, while 54% of large businesses with more than 250 employees also sold goods and services overseas.
The survey of 3,000 businesses pointed out that UK businesses faced significant challenges in 2022, including the effects of the pandemic, the Russian invasion of Ukraine, soaring energy costs and spiralling inflation.
However, it also found that Brexit was still the biggest challenge to UK exporters, with the percentage of all businesses saying that they had stopped exporting in the previous 12 months doubling to 14%.
In total, UK firms made £815bn worth of exports in 2022.
Among businesses that had exported in the last 12 months, two-thirds (66%) had experienced ‘significant’ supply chain issues in 2022. This is slightly below 2021 (70%), but still markedly above 2020 (44%), the survey found.
Businesses aiming to grow their business were asked about their growth plans for the next year. Only 3% spontaneously reported improving or refreshing their supply chain as part of their plans.
However, there was also increasing scepticism about the value of free trade agreements, such as plans to join the CPTPP trade bloc, with almost three in five businesses saying they expected these trade deals to have no impact on their business.
CPTPP – the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
