International Markets and Start-Ups

Expanding into international markets presents a significant opportunity for start-ups to reach new customers, diversify revenue streams, and enhance business resilience. However, despite the potential rewards, international expansion also comes with a range of challenges that businesses must navigate.

The 2024 UK Startup Awards findings offer valuable insights into the current state of international sales among entrepreneurs, highlighting key trends, challenges, and future aspirations for global expansion. Nearly four in ten founders (39%) are currently selling products or services overseas, reflecting the ambitions of many entrepreneurs seeking growth beyond domestic markets. This figure is significantly higher than the 18% of UK small firms that are recorded as trading with overseas customers and suppliers.

However, most start-ups still operate domestically, likely focusing on establishing themselves in their home markets before venturing into international territories and the complexities of global expansion, including logistical hurdles, regulatory compliance, and financial risks, can deter smaller businesses from pursuing international opportunities.

Gender differences in international trade reveal that 67% of female entrepreneurs and 56% of male entrepreneurs are not currently selling overseas, indicating that men are slightly more engaged in global markets than women. This suggests that male founders may have broader international networks or more opportunities for expansion. Interestingly, there is little variation in overseas sales between age groups, with 40% of entrepreneurs aged 16-34 and 38% of those aged 35 and over currently selling overseas, indicating that international expansion is a shared goal across generations.

There is a profound difference between sectors, with 34% of non-tech entrepreneurs selling overseas compared to 46% of tech entrepreneurs, reflecting the scalable and borderless nature of tech products and services. Geographical factors also play a crucial role in international expansion. Entrepreneurs in prosperous regions are significantly more likely (46%) to engage in global trade, likely due to better access to resources, infrastructure, and professional networks that facilitate international growth.