One in three small businesses are keen to export, including many micro-businesses, but bespoke government support is aimed at bigger firms. The FSB is calling on the government to open up its overseas trade support to more SMEs.
Improving export support for UK small businesses could "supercharge the government's growth plans" according to the Federation of Small Businesses (FSB).
Its recent survey of small businesses has found that there is a strong appetite to export goods within the SME community. According to the FSB's Ready to Dispatch report, over a third (35%) of non-exporting small firms would consider trading overseas in future.
Smaller firms are especially keen to start exporting, it seems, with, 38% of non-exporting micro-businesses (with under ten employees) saying that they would consider exporting, compared to 20% of businesses with 10-49 employees.
"Small firms that export tend to be the most profitable and innovative businesses. Our research shows clearly the big ambitions of small businesses - especially the smallest ones with the fewest resources - to grow overseas." FSB policy chair Tina McKenzie.
The FSB is calling on the government to lower the turnover threshold of its bespoke support to reach more prospective small exporters. Bespoke government export support allows free access to UK-based International Trade Advisors and in-market Trade Advisors to help businesses develop their own export strategy. The current turnover threshold of such services is set at £500,000.
However, data from the Department for Business and Trade (DBT) shows that a majority of small employers (61%) and sole traders (91%) had a turnover of below £500,000.
The FSB is suggesting that the DBT reduce the turnover threshold of one-to-one export support to £400,000 and also develop new tailored services for start-ups to encourage more small firms to trade internationally.
Untapped export potential among small firms
Considering the type of support and information that current and would-be small exporters are looking for, the findings show that:
- 41% are looking for general information on how to start exporting;
- 49% say that understanding of regulatory requirements in target markets would improve their competitiveness;
- 44% are looking for support specific to their target market;
- 50% say that sector-specific support would be the most valuable;
- 37% say that personal interactions with trade experts would make a difference;
- 34% are seeking financial support for activities such as tradeshows and translation.
FSB policy chair Tina McKenzie said: "The untapped export potential within the small business community is immense but also provides the perfect ingredients to kick start wealth creation, supercharging measures in the government's refreshed pro-growth [agenda] across public policy. This will need a real focus within the upcoming Trade Strategy White Paper and the Spending Review in June.
"Our members tell us better government export support will enable them to get their foot in exporting, and they most value tailored help. Allowing start-ups and the smallest businesses to access bespoke support will help grow our exports and the overall economy.
"The UK and EU must also look to address the unintended consequences of the Trade and Cooperation Agreement on small business and remove unnecessary trade barriers in the upcoming review in 2026."
The FSB is calling on the export minister to set a target of supporting 1,000 small businesses a year by 2029.
Written by Rachel Miller.