Official Statistics

Executive summary of wave 7 DBT national survey of UK registered businesses’ exporting behaviours, attitudes and needs

Published 9 August 2023

For the full report, read the DBT national survey of registered businesses’ exporting behaviours, attitudes and needs 2022

1. About the National Survey of Registered Businesses (NSRB)

The National Survey of Registered Businesses (NSRB) is commissioned by the Department for Business and Trade (DBT). It monitors exporting behaviours, plans, capabilities, and attitudes of businesses across the UK. It is also used as a tool for evaluating the performance of DBT communication campaigns. Fieldwork for this wave took place in 2022, before the creation of the new Department for Business and Trade on 07 February 2023. Therefore, this report will continue to refer to the Department for International Trade (DIT) when examining the 2022 data.

In total, 7 waves of the NSRB have been completed, commencing in 2015. This report is focused on the seventh and most recent wave of data collected across 2022. In 2022, a total of 3,001 responses were collected from businesses throughout the year, split into 4 quarters, across 3 collection periods. Data for quarter 1 was collected between 21 February and 07 April. Data for quarter 2 was collected between 02 May and 16 June.

Data for quarter 3 and quarter 4 was collected across an extended collection period between 20 September and 13 December. This report focuses on findings from across the year. However, in some cases where there are notable differences between quarterly findings, these have been highlighted in the relevant chapters of the report. Throughout the report, figures have been rounded to the nearest whole number and as such, breakdowns may not always sum to the expected total.

The primary focus of the NSRB is on businesses with an annual turnover of £500,000 or more. This is on the basis that these larger businesses can potentially generate high value exports at larger scale. Throughout most of this report, ‘UK businesses’ is referring only to those with a turnover of £500,000 or higher. This is not true of chapter 12, which reports on findings from the ‘total business population’. The ‘total business population’ refers to the whole respondent population, incorporating businesses with a turnover of less than £500,000.

2. Overall context and main findings

Throughout 2022, businesses continued to face significant challenges, including pre-existing concerns around the UK exit from the EU and COVID-19. These, and new issues relating to the Russian invasion of Ukraine, inflation, and the Autumn growth plan, have created a volatile and uncertain business environment.

Exporting Behaviour: The proportion of businesses exporting has remained stable but reported volumes have continued to fall. Nevertheless, businesses remained optimistic that exports will still grow in the future. Around 6 in 10 (58%) businesses said they had previously exported to one of the ‘core markets’. This is compared with 88% who said they had previously exported to the EU.

Business Concerns: General concerns around COVID-19 appear to have decreased in 2022 compared with 2021. However, concerns relating to the UK’s exit from the EU continued to be prominent. This included concerns about demand for UK products and services, supply chain issues, customs procedures, documentation, and administrative burdens.

Exporting Barriers: Across almost all capabilities for exporting measured in previous years, there was an improvement from 2021, with a recovery to levels observed in 2020. Issues relating to time, cost and access to contacts, customers and networks were seen as the greatest barriers to exporting to core markets.

Importing Behaviour: Almost half of businesses stated that they had imported in the last 12 months (43%). Of these, just under half had imported from at least one of the core markets in the last 5 years (47%).

Free Trade Agreements (FTAs): Almost 3 in 5 businesses expected FTAs to have no effect on their business (58%), up from 2021 (54%). Nearly a third (31%) believed FTAs would have a positive effect, which is similar to 2021 (33%).

Information Sources and Awareness: The proportion of businesses that reported knowing where to go for information, help and support with exporting remained stable. Websites and internet sources were the most popular overall. Government remained the main source of support on exporting and trade. General levels of awareness of the UK government’s trade support services have increased from 2021. However, most services were still not familiar to, nor used by, the majority of businesses.

Campaign Recognition: A minority of businesses (17%) were able to recall the DIT ‘Made in the UK, Sold to the World’ campaign. Fewer recognised the UK Export Academy (6%) and the Export Support Service (3%). Around a quarter (24%) felt these DIT campaigns were relevant to their business. However, these campaigns were largely seen to be clear (84%) and trusted (76%) sources of information.

3. Key findings by theme – (£500,000+ turnover businesses)

3.1 General exporting behaviours

The NSRB allocates businesses into 4 separate segments to reflect their exporting behaviour. The proportion of businesses falling into each of these segments has remained stable across all 7 waves of the NSRB.

• Around a third (34%) of businesses had exported goods and/or services in the past 12 months and fell into the ‘Sustain’ segment
• An additional 9% of businesses were either lapsed or intermittent exporters meaning they’d not exported in the last 12 months but had done so previously. These businesses made up the ‘Reassure’ segment
• A third segment, accounting for 15% of businesses, were those that had never exported before but believed that they could. These businesses reported having a product or service that they self-identified as being suitable, or could be developed to be suitable, for export. This group formed the ‘Promote’ segment
• The final segment is made up of businesses that have never exported and do not see their goods or services as being suitable for export. This group is referred to as the ‘Challenge’ segment and accounted for 42% of all businesses
• A remaining 1% of businesses fell outside of these segment definitions, as they were unsure of their exporting potential or history

Figure 1.1: Percentage (%) of respondents in each exporting segment from 2015 to 2022

Segment	2015	2016	2017	2018	2020	2021	2022
Sustain	33	33	35	33	34	35	34
Reassure	8	9	7	7	6	10	9
Promote	11	12	12	13	15	15	15
Challenge	43	41	39	38	44	38	42
Not specified	5	5	7	8	1	1	1

The base sizes for Wave 1 (2015), Wave 2 (2016), Wave 3 (2017), Wave 4 (2018), Wave 5 (2020), Wave 6 (2021) and Wave 7 (2022) are 1,160, 1,139, 2,535, 2,448, 2,557, 2,485 and 2405 respectively. Compared to 2015 (Wave 1), the number of respondents in the ‘Promote’ segment in 2022 (15%) was significantly higher and the proportion of those with an unspecified exporting segment was significantly lower. Overall, 43% of respondents in 2022 had exported before and 57% had never exported.

In 2022, large businesses (with 250+ employees) were still more likely than SME businesses (with 0-249 employees) to every have exported (54% compared with 42%). They were also more likely to have exported within the last 12 months (45% compared with 34%). Micro businesses (with 0-9 employees) were more likely than small and medium businesses (with 10-249 employees) to have exported before (46% compared with 39%). The proportion of SME businesses (with 0-249 employees) who have exported before is in line with 2021 findings.

Exporting behaviour in Northern Ireland (NI) remained high in comparison to the rest of the UK. However, a large proportion of NI businesses that exported did so only to the Republic of Ireland. In 2022, 31% of NI businesses reported that they had exported in the previous 12 months, but only to the Republic of Ireland. A further 24% said they exported both to the Republic of Ireland and overseas in the previous 12 months. Finally, 4% said they exported to overseas destinations only. These figures were in line with previous years.

The proportion of exporting businesses reporting either an increase or a reduction in their exports of goods and services in 2022 remained consistent with 2021. Among exporters of goods, under 3 in 10 (26%) stated that their exports of goods had increased in the past 12 months. Around 4 in 10 (43%) stated that they had decreased.

For service exporters, 26% also stated that their exports had increased in the past year, whilst 3 in 10 (29%) stated that exports had decreased. The most frequently cited reason for a reduction in exports over the past year was EU Exit (29%). Other common reasons given by businesses were a reduction of demand in their sector (26%) and general references to COVID-19 (22%).

Almost 3 in 4 exporters (72%) said that they were ‘passive’ in their exporting behaviour. This means that they responded to orders from other countries but did not actively target these customers. Conversely, 1 in 4 exporters (24%) said they did actively target customers abroad, with businesses in London the most likely to report this (38%).

The proportions of businesses that actively and passively export have remained stable since 2021. Around 1 in 5 potential or lapsed exporters (21%) were planning to start exporting at some point in the future. This is equivalent to 5% of the whole £500,000+ business sample.

3.2 Barriers to exporting

Following a dip in capability and capacity to export in 2021, Wave 7 marks a return to 2019 and 2020 levels. Around 2 in 3 businesses felt they had the capability to assess the cost of exporting (68%, up from 60% in 2021). A similar proportion felt they had adequate supply chains (66%, up from 58% in 2021, although still below 2020 levels) and sufficient financial resources (66%). This also applied to staff skills (65%) and the capability to develop an export business plan (65%, up from 57% in 2021). Having sufficient managerial time (57%, up from 49% in 2021) returned to 2020 levels. Having the capability to assess international competition for products or services (52%, up from 47% in 2021) also returned to 2020 levels.

Time, cost, and access to contacts, customers and networks were seen as the greatest barriers to exporting to core markets (USA, UAE, Canada, India, Mexico).^{[footnote 1]} In relation to exporting more generally, time (47%) and cost (41%) were the most likely factors to be mentioned by businesses as strong barriers.

3.3 Free Trade Agreements (FTAs)^{[footnote 2]}

Across all businesses with a turnover of £500,000 or more, 58% expected FTAs to have no effect on their business. This figure is up slightly from 54% in 2021. Nearly a third (31%) believed FTAs would have a positive effect, which is similar to 2021 (33%). Lower or zero tariffs to pay on exports or imports was again the positive outcome expected by that largest share of businesses (83%). Further positive outcomes cited were increased access to export markets (63%) and increased transparency on product standards for exports (61%). A similar proportion cited increased legal certainty or fewer legal barriers relating to exporting services (60%). Reduced risk of unfair foreign competition (52%) and reduced checks ensuring that goods conform with export market standards (56%) were also cited.

Over a third (37%) of businesses that had ever exported to non-EU countries were aware of whether their exports were eligible for reduced customs duties. This is comparable to 33% in 2021. Conversely, just under half (48%) said that they did not know about the eligibility of their exports, which was the same as in 2021 (48%).

Exporting businesses who were aware of the eligibility of their exports for reduced customs duties were asked how frequently they benefit. Half (50%) said that their most frequently exported goods to non-EU countries only benefited from this some of the time, never, or almost never. These businesses were then asked about barriers to obtaining reduced customs duties. The most common barrier was difficulties in understanding available information on how to obtain reduced customs duties (cited by 38% of respondents). A similar proportion reported complying with the requirements to make exports eligible for preferences (36%). Finding relevant information on how to obtain reduced customs duties (30%), and the benefits of obtaining them not outweighing the costs (30%) were also cited.

3.4 Supply chains

Among businesses that had exported in the last 12 months, two thirds (66%) had experienced ‘significant’ supply chain issues in 2022. This is slightly below 2021 (70%), but still markedly above 2020 (44%). This increase between Wave 5 and Waves 6 and 7 may be, in part, due to adding EU Exit to the question in Wave 6. That is, businesses may have been experiencing these issues prior to Wave 6 but were unable to attribute them to EU Exit within the question. In 2022, 17% of exporting businesses attributed supply chain issues to COVID-19, while 16% described them as being mostly caused by EU Exit. Furthermore, just over a quarter (28%) regarded both events as equally responsible for causing their supply chain issues. The proportion of businesses attributing these issues to the EU Exit has increased each quarter, whilst the proportion attributing them to Coronavirus has decreased.

Businesses aiming to grow their business were asked about their growth plans for the next year. Only 3% spontaneously reported improving or refreshing their supply chain as part of their plans. Businesses that agreed that demand for UK products or services had reduced due to COVID-19 or EU Exit were asked about contributing factors. Only 3% specifically mentioned problems with accessing supply chains. EU Exit (36%), issues relating to documentation and paperwork (18%) and COVID-19 (15%) were the most frequently cited.

3.5 Export knowledge and support

Around 1 in 4 (24%) businesses who do or could export felt that they had a high level of knowledge about how to export. This is higher than 2021 (21%) but not significantly so. Just under a quarter (23%) of businesses who do or could export reported having poor knowledge of how to export in 2022. This is a significant decrease from 2021 (30%). However, less than a quarter (23%) of businesses exporting only to the EU reported having a high level of knowledge. This is compared with 29% of businesses who exported only to non-EU countries, and 37% of businesses who exported both to non-EU and EU countries. This is indicative of a knowledge gap among exporting businesses following the UK’s departure from the EU.

The proportion of businesses that do or could export who sought advice and support has increased from 33% in 2020 to 42% in 2022. In 2021, this figure was 36%. UK government sources continue to play an important role as a potential source of advice on exporting, cited by 33% of businesses in 2022. This is an increase from 28% in 2020, but a decrease from 2021 (37%). Websites and internet sources remained the most popular source among businesses when asked about channels they use to stay informed about exporting or business products. Over 7 in 10 said they used these to stay informed (72%) and approximately 3 in 10 cited social media (31%). Businesses were also asked about the sources they used to keep up to date about their own industry. Compared with the sources used to stay informed about exporting, a narrower selection was used. Only 3 in 10 businesses reported using websites or internet searches (31%) to keep up to date about their own industry.

Over three quarters of businesses that do or could export reported being aware of at least one UK government trade support service (78%). This is a significantly larger proportion than in the last quarter of 2021^{[footnote 3]} (67%). In line with last year, the most common of these were GOV.UK tools (65%). Awareness of the Export Academy was much lower at 7%. Levels of usage were typically lower than their level of awareness, with GOV.UK tools at 46% and the Export Academy at 1%.

3.6 Expectations for growth and trade

Around 7 in 10 (69%) businesses were aiming to grow their business. A further 2 in 10 (19%) were aiming for consolidation and 13% felt they needed to return to profitability. These findings are in line with 2021.

The proportion of businesses agreeing that there is a lot of opportunity for their business to grow internationally increased (58%, up from 52% in 2021). The proportion who felt there would not be enough demand for their business overseas to make it worthwhile reduced (26%, down from 33% in 2021). Perceptions of there being a lot of demand for UK products and services has continued to decline. For reference, in 2017, 73% thought there was a lot of demand, compared with 55% in 2022. It is likely that EU Exit is a contributing factor to this trend. In 2022, half (49%) agreed that since the UK left the EU, there has been less demand for UK products and services. This is up from 39% in 2021. One area where issues appear to be receding is COVID-19. A smaller proportion of businesses cited it as their main reason for not being able to focus on exporting (from 42% in 2021, to 35% in 2022). Generally, businesses were more optimistic about the prospect of UK exports increasing over the next 5 years (41%), compared with the next 12 months (31%).

3.7 Importing

In the 2022 survey, businesses were also asked about their views on some issues relating to importing goods and services. In total, more than half of businesses stated that they had never imported (54%). A third of businesses said they were importing the same or more than in the previous 12 months (33%). Almost half of all importing businesses had imported from one of the core markets^{[footnote 4]} (USA, UAE, Canada, India, Mexico: 47%). Issues relating to time (33%) and cost (36%) were seen as the greatest barriers to importing.

3.8 Advertising and campaign metrics

In 2021, high profile information and publicity around the EU Exit transition period contributed to higher awareness levels of communications activity on exporting. In 2022, awareness returned to the levels more typically seen in the years prior (28%). Government remains the main source to which businesses attribute publicity around exporting. However, in 2022 there was a shift away from general mentions of the UK government (54%, down from 69%). Instead, a greater proportion specifically mentioned the Department for International Trade (15%, up from 6%).

The ‘Made in the UK, Sold to the World’ campaign was recognised by 17% of businesses. Just under 1 in 10 (8%) recognised ads for either the UK Export Academy or Export Support Service. The 2022 DIT campaigns were seen as clear (84%) and trusted sources of information (76%) and 24% thought the campaigns were relevant to them. The campaigns were seen to contain new information for 6 in 10 (62%) businesses, although this was higher among those who had not previously exported. Businesses who recognised the ads were asked if they had taken any action as a result. Overall, 22% had either taken some action, planned to take action, or would consider doing so in future.

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1. There were 5 overseas markets designated as ‘core markets’ in the 2022 NSRB survey. They were the USA, UAE, Canada, India and Mexico and were chosen on the basis of strategic significance for UK trade. ↩

2. Free trade agreements set out the rules that cover trade between 2 or more countries and aim to make trading between these countries easier. This may include the removal or reduction of customs duties. See https://www.gov.uk/government/collections/the-uks-trade-agreements ↩

3. At wave 6, the relevant question was only asked in quarter 4 of fieldwork. ↩

4. There were 5 overseas markets designated as ‘core markets’ in the 2022 NSRB survey. They were the USA, UAE, Canada, India and Mexico and were chosen on the basis of strategic significance for UK trade. ↩