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Fears over uncertainty and instability in the eurozone are preventing UK SMEs from exploring the potential of trading internationally. A study of 1,000 UK SMEs commissioned by Bibby Financial Services has revealed that almost one in five (17%) said they were too concerned about the instability of European markets to even think about doing business internationally. It is this negative outlook that is stopping them widening their horizons and targeting new business opportunities around the globe. Worryingly, a third (29%) of firms cited the eurozone crisis, with the resulting market instability and impact on exports, as having the biggest negative impact on the day-to-day performance of their business. While 38% said that it was financial and cultural barriers as well as costs and export regulations which were preventing them from trading in foreign markets, 18% of respondents said they had never considered exporting at all. UK trade figures show that there is still a net import from Europe, with the gap between imports and exports growing 86% in the past year. The UK’s EU exports decreased to £11.4bn in April, a drop of more than 20% from March – unusually high for the seasonal export dip between March and April. David Postings, Bibby’s UK chief executive, said: “Trade to EU member states is clearly being affected by the European debt crisis, but to find that this issue is preventing businesses from any involvement in overseas trade is a huge concern. “Identifying opportunities for growth in new markets is vital to the longevity of any business, and it is important that the effect of current turmoil in Europe on the day-to-day performance of UK firms is kept to a minimum. “Businesses need to be aware that there is help out there to overcome the challenges associated with trading internationally and that, despite economic stagnation in the EU, there is still strong demand for quality products from all over the globe.” The survey also found that London-based businesses are feeling most pressured by the problems in Europe, with 38% of companies in the capital struggling as a result. In Scotland, by contrast, the situation in Europe seems to be having less of an impact. Only 17% of Scottish firms cited the eurozone crisis as a major challenge to their current stability. Other Business Money News
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