The Federation of Small Businesses (FSB) is calling on the UK government to make its export strategy more accessible and effective for small and medium-sized enterprises (SMEs). This appeal comes ahead of the publication of the Trade Strategy and Small Business Command Paper in Spring 2025. The FSB emphasizes the critical role small businesses play in driving the UK’s export economy and the need for tailored support to help them thrive internationally.
Key Findings on Small Business Exporting
New research from the FSB highlights that over one-third of small exporters are actively seeking international opportunities, and a staggering 90% of small businesses recognize the importance of exporting to the UK economy.
61% of small businesses trade internationally as “passive exporters,” responding to inquiries from overseas customers.
35% actively pursue sales in foreign markets, demonstrating significant potential for growth in SME-led exports.
Many small businesses aspire to enter global markets but face challenges due to a lack of awareness of government export resources.
Challenges Facing Small Exporters
The FSB’s “Ready to Dispatch” report reveals that small businesses face hurdles when attempting to expand internationally, including limited knowledge about available support services.
Small businesses identified several key needs to facilitate international trade:
Customs Information: 37% require clear guidance on navigating customs regulations.
Market Visits: 35% seek opportunities to explore target markets firsthand.
Financial Support: 31% need funding for activities like attending trade shows or translating marketing materials.
Regulatory Knowledge: Almost half (49%) say understanding local regulations is critical.
Lower Delivery Costs: 42% cite affordable shipping as essential.
Specific Queries: Over a third (36%) want tailored answers on invoicing, VAT application, and related topics.
The Need for Better Government Support
Despite numerous government programs aimed at helping small exporters, awareness remains alarmingly low:
80% of small businesses are unaware of the Export Academy, a free online training resource.
76% don’t know about the government’s GREAT.gov.uk platform or related events.
72% haven’t heard of the Export Support Service, a helpdesk for exporters.
53% are unfamiliar with the support offered by overseas offices under the Department for Business and Trade.
58% haven’t engaged with International Trade Advisors.
Expert Insights on Supporting Small Exporters
Tina McKenzie, FSB Policy Chair, stresses the importance of government assistance for small businesses:
“While larger businesses have teams to overcome trade barriers, small firms rely heavily on resources like signposting, guidance, and helplines. Building awareness and improving delivery of these services are vital for small exporters to succeed.”
Rory MccGwire, founder of Atom Content Marketing and Donut websites, adds:
“With over 128 government schemes for business support, it’s no surprise SMEs struggle to navigate what’s available. Simplifying and promoting these resources could significantly boost small business exports.”
A Call to Action for a Fit-for-Purpose Export Strategy
The FSB is urging the government to commit to a comprehensive trade export support policy that caters specifically to the needs of SMEs. By addressing gaps in awareness and access, the UK could unlock the full potential of small businesses in driving export growth.
As the Trade Strategy and Small Business Command Paper approaches, the FSB’s recommendations underscore the importance of empowering SMEs to expand globally, fueling economic growth and reinforcing the UK’s position in international trade.