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

Netflix to reveal for first time how many...

October 12, 2022

Businesses expect taxes to rise after general election

November 6, 2023

Grant Shapps backs nuclear power in net zero...

March 16, 2023

Crypto Savings Accounts To Earn Passive Income

October 28, 2024

Trump poised to ease impact of car tariffs...

April 29, 2025

The King’s Speech – What is next for...

July 22, 2024

Former Kemi Badenoch advisor says conservative Government ‘does...

September 15, 2023

Scotland’s first producer of green chemicals launches crowdfunding...

May 15, 2024

British payments start-up Sequence receives Silicon Valley backing

September 20, 2022

The power of a negative review

March 27, 2024

    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

    • House of Lords AI summit at London Tech Week warns of ‘skills cliff edge’ threatening UK’s competitive future

      June 11, 2025
    • Tariff tensions force Spain’s food giants to seek markets beyond the US

      June 11, 2025
    • Sizewell C secures £14.2bn state boost – but energy savings won’t come for a decade

      June 11, 2025
    • Michelle Mone-linked PPE firm faces £122m high court battle with government

      June 11, 2025
    • Entrepreneur turned away from London Tech Week for bringing baby sparks industry backlash

      June 11, 2025
    • Global economy faces bleak outlook as World Bank warns of worst decade since 1960s

      June 11, 2025

    Categories

    • Business (8,183)
    • Investing (2,027)
    • Politics (15,591)
    • Stocks (3,141)
    • 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