UK Businesses Optimistic About International Expansion

Research reveals strong international growth outlook for UK businesses amid global trade complexities, with Europe ranked as the most attractive market as businesses value economic stability

Nearly three-quarters of UK businesses remain optimistic about taking their operations global, despite shifting trade regulations and global market complexities, new research commissioned by Equals Money has revealed.

The survey of 509 senior decision-makers in UK businesses found that 63 per cent expect rising protectionist tariffs, such as those from the US, to benefit international growth.

Businesses are also confident that UK government initiatives – such as the financial services regulation reforms (70 per cent), the AI Opportunities Action Plan (69 per cent) and Invest 2035 (65 per cent) – will drive domestic growth.

Europe remains the most attractive market for UK businesses, with 46 per cent planning to invest in the region over the next five years. North America follows closely (38 per cent), while East Asia is a target for 17 per cent.

In 2023, 41 per cent of UK exports were directed to the EU, a proportion that decreased from 53 per cent in 2003. This decline is attributed to a substantial increase in services exports to non-EU countries, which have more than doubled since 20031.

Thanim Islam, Head of FX Analysis at Equals Money said:

“With two thirds of businesses anticipating that rising protectionist tariffs could create favourable conditions for international growth, there's cause for optimism."

"Historically, international expansion has been fraught with the challenges of FX fluctuations, but today’s tools and strategies are making it easier than ever. With the right FX solutions and currency hedging, businesses can manage exchange rate risks, protect their margins, and capitalise on global growth opportunities."

43 per cent view international expansion as a key growth driver, while almost a third (31 per cent) consider it essential for future business survival.

Beyond market size (40 per cent), economic stability (38 per cent) is the most important consideration for market selection, followed by regulatory conditions (30 per cent), political stability (29 per cent) and labour costs and tax incentives (27 per cent).

A quarter (25 per cent) cite growing demand from international customers as a motivating factor for international expansion.

Yet businesses face significant operational and financial challenges in the international arena. The survey found that the most common obstacles include:

· Complying with regulations and legal requirements (38 per cent)

· Establishing partnerships and supply chains (37 per cent)

· Managing international payments and currency exchange risks (35 per cent)

For businesses looking to manage cross-border payments confidently, Equals Money offers integrated financial tools that streamline global payments and protect against currency risks. Find out more here.