Family Businesses and Export
The Challenges Family businesses face distinctive barriers that can hold them back from seizing trade opportunities. Many lack the specialist teams needed to navigate complex customs rules or international standards. The upfront costs of entering new markets can be prohibitive, particularly where demand is uncertain, and export finance remains difficult to access. Scale-up Institute Survey data, commissioned by FBUK, shows that five in ten family business, and six in ten family businesses scaling up, see international exporting and expansion as vital to their future growth. However, almost six in ten (57%) family businesses feel that there is too much friction in the system, including tariffs and political uncertainty. [2] This friction hinders their growth opportunities. Family businesses are keen to see further assistance with effective trade missions, targeted export finance, overseas market research support, and help in identifying market opportunities. This is alongside greater assistance with the physical movement into new markets. Almost six in ten (58%) family businesses state that the EU presents the best overseas opportunity for their business, followed by the USA (27%), and would value help in navigating the post-Brexit environment and understanding the evolving tariff system in the United States. [3] This evidence shows there is a significant volume of untapped trade potential within the family business community, with too many firms unsure where to turn for relevant, targeted support. This risks the UK missing out on growth opportunities, as exporting businesses are often more competitive, profitable and can grow their sales faster. Family firms, who are not exporting, can be constrained by a risk-averse approach to international expansion. A family firm with a third, fourth, or fifth-generation owner may be more reticent to expand internationally and potentially risk the legacy of the business and its future. The Opportunities FBUK is ideally placed to work closely with Ministers and officials across government to ensure that small and medium sized businesses are taking full advantage of existing trade support. As the Government drives forward implementation work on the Trade Strategy, we are also well placed to serve as a strategic partner helping to shape future provision and ensure that our members are informed of the positive support government is offering.
Registered in England and Wales. Registered Number: 4258666. VAT Registration Number: 911234075.
T: 020 7630 6250 | E: info@familybusinessuk.org | W: familybusinessuk.org 80 Brook Street, London, W1K 5EG, United Kingdom
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