US demand for exports from UK based small and medium-sized enterprises (SMEs) has almost doubled in the last year, finds research.
According to trade trend figures released by e-commerce site Alibaba.com, the US was the largest export market for UK SMEs in the first quarter of 2011, accounting for one in ten buyer enquiries made to UK small businesses.
The figures are supported by the most recent US economic data which shows that though US unemployment remains high – 9 per cent in April – the US economy is continuing to grow.
The most active export markets after the US are India, Pakistan and Nigeria.
On the import side, China remains the most popular market for UK small business buyers, with 70 per cent of UK buyer enquiries being sent to Chinese businesses, with the figure up on the same period in 2010 (56 per cent).
Despite the upward trend for Chinese imports, demand from Chinese suppliers for UK goods is down by 50 per cent (9 per cent in 2010 to 4.4 per cent in 2011).
The greatest number of enquiries received by UK suppliers from foreign SMEs was for minerals and metallurgy.
UK exporters also received a significant number of enquiries for food and beverage and agriculture products during the period.
British businesses are increasingly trading with suppliers based at home, with 20 per cent of buyer enquiries to UK businesses coming from the UK.
General manager EMEA for Alibaba.com Maggie Choo says, ‘Though it is encouraging to note this growing strength in international trading relationships, this quarter’s figures also demonstrate the increasing reliance on UK-based suppliers for UK small businesses.
‘This reticence to trade outside of a ‘comfort zone’ is reflective of the continuing unpredictability of the UK economy and the lack of confidence amongst British businesses for trading internationally.’
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