Business leaders roll out five-step plan to get UK SMEs exporting

The UK’s largest business organisation has joined forces with industry and finance leaders to help unleash the untapped exporting potential of UK SMEs.

The SME Export Taskforce, led by the Federation of Small Businesses (FSB), has published a paper that sets out concrete actions to ensure all SMEs can participate in international trade.

Just one in 10 small businesses in the UK currently sell their products and services overseas, according to government figures. Released by the FSB, in conjunction with Amazon UK, the Association of the British Pharmaceutical Industry, the British Chambers of Commerce, the Chartered Institute of Export & International Trade, the Confederation of British Industry, Creative Nature, Creative UK, EY UK, the Food and Drink Federation, the Institute of Directors, Make UK, Santander UK, techUK, and the Wine and Spirit Trade Association, the paper attributes this low proportion of SME exporters to current rules that make trading difficult, “confusing” and unhelpful government support, and a lack of adequate advice.

Set up in late 2023 at the invitation of the Labour Party, the SME Export Taskforce held a number of roundtable sessions during the first quarter of this year. During the sessions, SMEs, finance providers, large corporates and business associations shared their experiences of international trade and ideas on improving the exporting journey for small businesses. After testing participants’ proposals, the taskforce has developed a set of five policy recommendations for the new Labour government that it says would secure a “measurable increase” in the number of UK SMEs that export.

“International trade is the ultimate growth hack for small firms – it allows them to tap into new markets and diversify their revenue streams,” says Tina McKenzie, the FSB’s policy chair. “In turn, exporting businesses are more likely to grow faster and keep their heads above water during tough domestic times. But with only 10% capitalising on those opportunities, we set out a roadmap of how more can, and should, be done.”

“We need to cut through the red tape and lift our small business community to trade globally, easily,” she adds. “We hope this paper will form the blueprint for policies that will change the SME exporting landscape for the better.”

The taskforce’s five priorities are: a cross-Whitehall approach to policy, where trade is embedded across all relevant government departments; an “open, honest, and two-way approach” to shaping legislation and trade deals; global leadership on digital trade to deliver the benefits of paperless trading across the whole supply chain; a “robust export support offering” including both public sector sources and private sector initiatives such as Navigator Global; and better SME access to trade finance.

In response to the paper, Jonathan Reynolds, UK business and trade secretary, says: “This welcome and thorough report identifies the practical changes needed to boost their exports which this government will consider urgently.”

“This government is going to work in partnership with FSB and small businesses from across the country to tear down export barriers so they can capitalise on the exciting opportunities to sell more of their goods and services around the world,” he adds.