Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

New Research Shows $42 Trillion Locked in Global Supply Chains Stymies SME Growth

by February 21, 2024
February 21, 2024
New Research Shows $42 Trillion Locked in Global Supply Chains Stymies SME Growth

The latest Prism SME Barometer reveals UK’s small and medium-sized businesses face a massive $42 trillion in working capital trapped in global supply chains. This capital constraint severely limits SMEs’ ability to expand internationally.

It shows access to capital ranks among the top barriers to SME participation in global trade. Over 30% of SMEs surveyed said accessing export finance is a major hurdle.

“The mismatch between domestic and cross-border capital can block SMEs from securing credit for overseas ventures,” said Ali Ansari, Managing Director at Taulia. “SMEs carry higher financial risk in cross-border deals, so they fight for leftover capital after multinationals take the lion’s share.”

Ansari explained how poor financial infrastructure in some regions makes SME lending cost-prohibitive. “When you factor in exchange rate volatility and reliance on a few international financial hubs, costs get too high for most SMEs,” he said.

Supply chain finance (SCF) is gaining popularity as a solution. SCF lets suppliers receive early payment on invoices through third-party financiers. Buyers approve invoices and upload data to the SCF platform. Suppliers select invoices for accelerated payment, receiving funds upfront with a small fee deducted. The buyer pays the financier on the original due date.

“Financing costs are far lower with SCF because they are based only on the buyer’s creditworthiness,” Ansari said. “For SME suppliers, rates can be 90% less than factoring and other financing options.”

The report shows 71% of SMEs expect major benefits from supply chain digitisation in five years. Another 28% aim to capture higher margins through data-driven customer insights.

William Bain, Head of Trade Policy at the British Chambers of Commerce (BCC), said recent declines in UK trade underline bottlenecks in global supply. “Transport costs, exchange rate swings, uncertainty and rules of origin issues hamper UK exporters,” he says.

The BCC found most firms struggle trading with the EU post-Brexit. Slow adoption of digital customs processes adds friction. “Boosting exports requires convincing more SMEs to trade internationally,” said Liam Smyth, Managing Director at ChamberCustoms.

With tight capital constraining SME growth, unlocking trillions in supply chain inefficiencies is critical. Solutions like SCF and digitisation provide paths to free up working capital and enable SMEs to access the global marketplace.

Read more:
New Research Shows $42 Trillion Locked in Global Supply Chains Stymies SME Growth

0
FacebookTwitterGoogle +Pinterest
previous post
Experts Warn Net Zero Transition to Be Costlier Than Anticipated, Lords Committee Told
next post
Decoding 10-Year Treasury Yields: A Monthly/Secular Perspective Overview

You may also like

One in five businesses have been victims of...

December 7, 2023

Tripmates launches to simplify group trip planning and...

October 8, 2024

Business Best Practice: Preparing for AI Regulation

March 7, 2024

Companies House is dysfunctional and facilitates fraud, ministers...

November 8, 2022

Green Innovation: How THC Startups Are Using Technology...

October 28, 2024

Secrets of Success within the personalised gifting sector:...

July 17, 2024

Secrets of Success: Charlie Ruddy, CEO of BeFibre...

October 4, 2023

Price Transparency: The Key to Consumer Trust and...

December 5, 2024

Jeremy Hunt rules out any tax cut which...

November 20, 2023

Four-day week made staff more stressed, says tech...

October 2, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Why AI and green tech are vital to SME growth in 2025

      June 10, 2025
    • Yes, it’s great to get PR coverage – until it’s locked behind a bloody paywall

      June 10, 2025
    • We have to act now to keep AI from becoming a far-left Trojan Horse

      June 10, 2025
    • SME lending delays slashed by 80% thanks to fintech-driven back-office reform

      June 10, 2025
    • UK defence innovation strategy opens new doors for SMEs in AI and autonomous tech

      June 10, 2025
    • Shark Tank study shows charming narcissists get funding

      June 10, 2025

    Categories

    • Business (8,172)
    • Investing (2,021)
    • Politics (15,580)
    • Stocks (3,138)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved