Expanding or exporting overseas is a top priority for nearly one in three (32%) mid-sized businesses over the next year despite complex international trade conditions, according to the latest research from accounting and business advisory firm, BDO.

BDO’s survey of 500 mid-sized business leaders, suggests they have been planning for supply chain disruption and new international tariffs by working to build new routes into international markets.

Almost two in five (37%) expect to increase exports in the next year, rising to over half of businesses in the retail and wholesale (52%) and technology (56%) sectors. Many are targeting more sales towards Africa (35%), Australia (38%), and Asia (30%). Europe remains a healthy market for UK mid-sized businesses, with 41% planning for more exports to flow to the European Union over 2025.

Mid-sized businesses, which generated £1.6 trillion in turnover last year, are continuing to push for growth through international trade despite grappling with supply chain pressures. This includes uncertainty around tariffs in receiving countries, delayed deliveries or a shortage of the skills needed to support overseas exports.

Over one in three (35%) face skills shortages in export operations or supply chain management teams at a time when they hope to grow overseas trade.

Mounting pressures come as demand from end consumers slows for their products or services. Almost one in three (30%) say lower demand from consumers, which could include from businesses with elevated operating costs or consumers with high living expenses, is a top challenge – rising to 43% among manufacturers.

Despite these headwinds, mid-sized businesses are working to tackle the challenges they face and remain optimistic. Ahead of Government’s plans to publish a Small Business Strategy later this year, the majority (95%) expect the strategy’s focus on growing smaller firms to benefit them.

Of this proportion, almost a quarter (23%) are calling for measures to reduce red tape, including reforms to streamline customs procedures, which impact the export of products and services overseas, or offer stronger support for trade, including more dedicated UK Export Finance funding.

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These businesses may be buoyed by the Government increasing the amount some companies can borrow from the British Business Bank’s Growth Guarantee Scheme or UK Export Finance’s Export Development Guarantee, as they grapple with the prospect of new tariffs in some receiving countries.

Richard Austin, Partner at BDO, said: “Although conditions remain challenging, the UK’s mid-sized businesses are highly ambitious and have their sights firmly set on driving growth. Generating £130 billion in revenue from overseas trade alone last year, these businesses are the strongest engine for our economy.

“The forthcoming Small Business Strategy is one of many major opportunities for the Government to provide targeted support for the mid-market, simplify regulation and enable mid-sized businesses to deliver their plans for growth – all of which will be vital to boosting our economy.”