SMEs focus on domestic markets

Bibby Financial Services’ annual Global Business Monitor has revealed that nearly two-thirds of SMEs (65%) were concerned about the state of the global economy, while just 7% said international trade is the greatest growth opportunity for their business.

Instead, respondents said finding new market segments (12%), expanding domestically (12%) and developing new products and services (11%) were viewed as the greatest opportunities for growth.

More than half (53%) of SMEs described the performance of their local economy over the past 12 months as good, while a third (33%) expected their local economy to improve over the next year.

Almost half (49%) of businesses said they’ve grown over the last 12 months, while more than half (55%) expected to grow in the next 12 months.

David Postings, global CEO of Bibby Financial Services, said: “We have seen unprecedented geo-political change over the past 18 months, resulting in widespread uncertainty.

“This declining confidence in the global economy is leading many SME owners to retreat and focus on growth in their domestic markets.”

The research has also revealed that the political situation in the US is considered the greatest threat to global economic growth among SMEs (29%), followed by Brexit (20%), and conflict and the war or terrorism (15%).