Tina McKenzie
Policy Chair, Federation of Small Businesses (FSB)
The untapped global potential of small businesses in the UK is a missed economic opportunity we cannot afford to ignore.
Only 12% of registered small firms trade internationally,1 but many more than that want to; if we could double that figure, the UK’s overall economic growth would benefit enormously.
Boosting small business exports
Small businesses that already trade internationally, or would like to start doing so, will look to the forthcoming Trade Strategy white paper and the SME Command Paper. They are both due to be published in 2025, to fulfil Labour’s commitments to helping increase export intensity among small firms. FSB has identified five solutions to revolutionise how small firms experience the international trade framework. If enacted, they could help unleash the export potential of small businesses.
Trade legislation and agreements must be
crafted through transparent, honest dialogues.
Solutions to enhance SME export support
First, a cross-Whitehall approach to policy is essential. International trade must be prioritised across all Government departments, which must all be aware of trade goals and actively contribute to trade negotiations. This is to ensure the UK maximises the benefits of Free Trade Agreements.
Second, fostering an open relationship with the business community is crucial. Trade legislation and agreements must be crafted through transparent, honest dialogues that prioritise the needs of small firms. Third, the UK must take the lead in digital trade. Embracing paperless trading across the global supply chain will significantly reduce administrative red tape and improve efficiency.
Fourth, SMEs need immediate support when they venture into international markets. From day one, SMEs should have access to the resources, expert guidance, and support necessary to thrive globally. Finally, addressing the finance gap is imperative. Better access to trade finance and reduced financial barriers to trading will enable small firms to seize international opportunities by reducing the financial risks that currently deter many from exporting.
Empowering SMEs for global growth
By cutting red tape and providing clear, actionable support, we can help small firms trade globally with confidence. After all, exporting is the ultimate growth hack for small firms: it allows them to grow rapidly and stay resilient during tough economic times. It’s time for small firms to take their place on the global stage – backed by a supportive framework designed for their success.
[1] Gov.uk, 2021. Number of exporting registered businesses in the UK, 2021.
