Export support services must target small firms, says FSB

Written by: Rachel Miller

Date: 3 December 2024

A small business has increased turnover by exporting to overseas customers

The Federation of Small Businesses is calling on the government to make its export strategy fit for purpose for small businesses as part of a strategy to increase the number of UK exporters.

Over a third of small exporters are seeking international opportunities and nine in ten of UK small firms say that exporting is important to the UK economy. These are the findings of new research conducted by the Federation of Small Businesses (FSB), ahead of the publication of the Trade Strategy and Small Business Command Paper in Spring 2025.

According to the FSB, small businesses account for the majority of exporters in the UK; 61% of them are "passive" exporters that trade internationally by reacting to inquiries from overseas customers, while 35% of small exporters actively pursue overseas sales. The findings suggest that many more UK SMEs would like to start exporting.

However, the FSB Ready to Dispatch report has found that small business owners are unaware of many government sources of advice and support on exporting and the FSB is calling on the government to commit to a trade export support policy that meets the needs of UK SMEs.

Small businesses that want to expand into new markets say they are looking for:

  • Information on specific issues, such as customs (37%);
  • Opportunities to visit target markets (35%);
  • Financial support for activities such as tradeshows and translations (31%).

Almost half of current and would-be exporters (49%) say knowledge of local regulations is key, while 42% are looking for low delivery costs. More than a third (36%) want answers to specific queries, such as how to issue an invoice to an overseas client or apply local VAT.

"While larger businesses have the resources and bandwidth to overcome trade barriers, small firms often don't have a dedicated team that they can lean on to navigate international markets. That's why government resources, such as signposting, guidance and helplines, are so important to them." Tina McKenzie, FSB policy chair.

Government support for exporters

There are many government sources of help with exporting but it seems most small firms simply aren't aware of them:

FSB policy chair Tina McKenzie said: "While it's disheartening to see the level of SME knowledge and engagement with these resources isn't as high as we would like it to be, this also highlights the tremendous opportunities these support services could bring to small exporters, if awareness building and delivery of support are done right."

"In the UK, business support schemes come and go. There are currently no less than 128 schemes being promoted by the government, so it is no surprise that businesses can't keep up with what help is relevant and available." Rory MccGwire, founder, Atom Content Marketing and Donut websites.

 
 
 
 
 

FSB calls for better export support

The FSB is calling on the government to take specific steps to improve support for small would-be exporters, including:

  • Take a "think small first" approach to export support;
  • Set new export targets that focus on SME growth, including growing the number of SME exporters to 20% by 2030;
  • Integrate GREAT.gov.uk content under the Help to Grow umbrella to create a single business growth support hub;
  • Improve signposting between government resources;
  • Expand the number of in-country attachés for high-growth sectors in priority markets.

The team behind the Donut websites have published an exporting eguide for small businesses sponsored by Equals Money which offers guidance, information and handy case studies.

Written by Rachel Miller.

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