New research from one of the world’s largest accountancy networks Kreston Global reveals how economic uncertainty, geopolitical tension and regulatory change are influencing the international growth ambitions of UK businesses.
Despite a challenging global environment, UK mid-market businesses remain committed to international expansion. However, their approach is becoming increasingly cautious and strategic as business leaders weigh new opportunities against growing risks.
Findings from Kreston’s latest Interpreneur Report show that global uncertainty and the pace of change are reshaping priorities for UK SMEs pursuing international growth. This is evident across key areas including market selection, technology adoption, regulation and access to talent.
For UK businesses looking to expand internationally, the most attractive benefits were:
- Accessing new customer segments (61%)
- Reducing dependence on any single market (48%)
- Gaining a foothold in new markets before competitors (47%)
Now in its third edition, the Interpreneur Report 2026 provides valuable insight into international growth trends among mid-market businesses. The report is based on a survey of 1,100 “interpreneurs” (international entrepreneurs) with revenues ranging from £10 million to £300 million across 11 countries, all of whom have successfully expanded into international markets.
The research explores global mobility trends for SMEs and examines the strategies, tools and priorities business leaders are using to navigate the realities of international expansion today.
UK businesses remain optimistic, but concerns persist
Overall, UK respondents remain positive about international growth opportunities, scoring the current climate for international expansion at an average of 7.7 out of 10.
However, confidence is accompanied by a number of significant concerns:
- Geopolitical instability (44%)
- Increasing tariffs (44%)
- Changes to regulation and compliance requirements (40%)
Trade disputes and regulatory complexity continue to challenge growth
While confidence remains relatively strong, many organisations are already adjusting their expansion strategies in response to global pressures.
Among the ongoing challenges highlighted by UK respondents were:
- Finding the right local partners (47%)
- Economic volatility, including inflation and currency fluctuations (40%)
- Cross-border logistics and supply chain issues (38%)
Regulatory and tax complexity also continue to present significant barriers:
- Navigating complex regulatory, ESG and legal requirements (43%)
- Managing global tax obligations such as VAT and double taxation (37%)
What makes an overseas market attractive for expansion?
The research shows that favourable trade and tax conditions are becoming more important in market selection decisions.
Favourable trade agreements ranked as the leading pull factor globally (48%) and were similarly important for UK businesses (49%).
Other key considerations included:
- Alignment with long-term growth strategy (43%)
- Access to skills and talent (43%)
These findings reinforce the importance of taking a strategic rather than opportunistic approach to international growth, balancing immediate market opportunities with longer-term business objectives.
Technology and AI are accelerating global growth ambitions
Alongside market access, technology is playing an increasingly important role in supporting international expansion. At the same time, digital transformation is becoming central to growth strategies among UK interpreneurs:
- 50% see advanced technology adoption as a major future opportunity
- 69% report that artificial intelligence (AI) is already having a significant impact on their international expansion
Notably, the report found that only 1% of internationally expanding businesses are not using AI, underlining the extent to which technology has become embedded within international growth strategies.
“The findings from the Interpreneur Report suggest that international expansion remains firmly on the agenda for UK SMEs. However, and much like PEM clients, business leaders are taking a more measured approach as they navigate geopolitical uncertainty, changing regulations and evolving trade relationships. At the same time, access to talent and the adoption of advanced technologies continue to create opportunities for businesses looking to grow beyond domestic markets. Success increasingly depends on balancing ambition with careful planning, local expertise and a clear understanding of regulatory and tax obligations in target markets. We have extensive experience of supporting clients who are considering international expansion, so get in touch with a member of our team”.
Warren Tilbury, CEO of PEM
“Although the global challenges faced by interpreneurs are acute, SMEs are uniquely positioned to navigate uncertainty. Their agility allows them to turn disruption into opportunity and drive growth both domestically and internationally. This report aims to equip business leaders with the insights they need to succeed globally, regardless of the complexity of the environment in which they operate.”
Liza Robbins, Chief Executive of Kreston Global
Please note that this content is not intended to give specific technical advice. It is designed to highlight some of the key issues rather than provide an exhaustive explanation of the topics. Professional advice should always be sought before action is either taken or refrained from as a result of information contained herein.
