Britain’s businesses are struggling with exporting expertise, as evidenced by a recent survey involving 3,000 companies with revenues over £500,000. The survey found that only 18% of respondents considered themselves experts in exporting last year, a decline from 24% the previous year and the lowest level since the UK’s Trade and Co-operation Agreement with the EU commenced in 2021.
The survey revealed that the proportion of businesses reporting low levels of exporting knowledge increased from 23% in 2022 to 28% last year, with the remaining businesses acknowledging the need for improvement in their expertise. This growing knowledge gap, particularly following Brexit, underscores the challenges facing British businesses in navigating the complexities of international trade.
A consortium of major tech companies and business support groups has called on the government to enhance export support for small businesses as part of a revised industrial and trade strategy. The E-Commerce Trade Commission, consisting of members like Amazon, Alibaba, eBay, Shopify, and Google, and business bodies such as the Federation of Small Businesses, has urged the government to simplify official guidance, prioritise e-commerce and digital trade tools, and provide increased grants.
Richard Hyde, a senior researcher at the Social Market Foundation and author of the commission’s report, emphasised the need to increase exports among small businesses. He stated, ‘The vast majority of British businesses are smaller businesses, but too few of them are exporting at present. Achieving higher levels of exporting should be a key lever for the government’s growth mission.’
Gareth Thomas, the minister for exports, acknowledged the importance of boosting digital trade and supporting small firms in exporting globally. ‘We are working with industry to boost digital trade so that more small firms can export right around the world, and our modern industrial strategy will help us deliver long-term, stable growth that supports skilled jobs,’ he remarked.
The survey also indicated that while 40% of businesses sought advice and support last year, awareness of specific government-funded resources, such as the network of international trade advisers and the export support service, remains limited. The primary source of advice was the main government website, used by 45% of respondents.
Despite seeking support, the number of companies engaging in export activities has been declining since 2021, dropping from 45% that year to 39% in 2023. Most exporters do not actively pursue new overseas orders, with only 27% indicating they actively seek new opportunities.
The E-Commerce Trade Commission also highlighted the necessity of encouraging more women-led businesses to export and making emerging market opportunities more accessible. They argued that tailored and accessible support could help bridge the knowledge gap, enabling more SMEs to contribute to the UK’s growth through increased exports.
These findings underline the necessity for targeted government interventions to equip British businesses with the tools and knowledge required to succeed in global markets, particularly in the post-Brexit trading environment.
The survey’s findings make it clear that there is an urgent need for the government to address the knowledge gap among Britain’s businesses regarding exporting. Enhanced support and resources could play a pivotal role in ensuring that more businesses can successfully navigate international trade complexities and contribute to the country’s economic growth.