A recent survey indicates that Britain’s exporters are increasingly finding themselves ill-prepared to seize global opportunities.
The annual research commissioned by the Department for Business and Trade highlights a worrying trend in export expertise.
Decline in Export Expertise
A survey of 3,000 businesses with revenues exceeding £500,000 revealed that only 18% considered themselves experts in exporting last year, down from 24% the previous year. This marks the lowest level since Britain’s Trade and Co-operation Agreement with the EU took effect in 2021.
Additionally, the proportion of businesses reporting low levels of exporting knowledge increased from 23% in 2022 to 28% last year. Others admitted they could manage but needed to improve their expertise. This growing knowledge gap is particularly concerning post-Brexit.
Calls for Government Support
This decline in expertise has sparked calls from major tech companies and business support groups for the government to enhance export support for small businesses. The E-Commerce Trade Commission, which includes members like Amazon, Alibaba, eBay, Shopify, and Google, along with business bodies such as the Federation of Small Businesses, has urged the government to simplify official guidance and provide more grants.
Richard Hyde, a senior researcher at the Social Market Foundation, emphasised the importance of increasing 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.”
Government Acknowledgement and Actions
Gareth Thomas, the minister for exports, recognised the need to boost digital trade and support small firms in exporting globally. He said, “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.”
Despite government efforts, awareness of specific government-funded resources remains low. For instance, while 40% of businesses sought advice and support last year, the main government website was the most frequently used source of advice, utilised by 45% of respondents.
Continued Decline in Exporting
Even with support, the proportion of companies that have ever exported has been on the decline since 2021, dropping from 45% that year to 39% in 2023.
Additionally, most exporters reported not actively pursuing new overseas orders, with only 27% actively seeking new export opportunities.
Encouraging Women-Led Businesses
The E-Commerce Trade Commission stressed the need to encourage more women-led businesses to export and to make emerging market opportunities more accessible.
They advocated for tailored, easily accessible support to help bridge the knowledge gap and enable more SMEs to contribute to the UK’s growth through increased exports.
Targeted Government Interventions Needed
The findings underscore the need for targeted government interventions to better equip British businesses with the tools and knowledge required to thrive in global markets.
As the UK continues to navigate its post-Brexit trading landscape, ensuring businesses are well-prepared to export is crucial for economic growth.
Low Awareness of Resources
The survey revealed that while many businesses seek advice, awareness of specific government-funded resources is still low.
This indicates a need for better communication and outreach to ensure businesses can access the support they need.
The survey results highlight a significant expertise gap among Britain’s exporters, necessitating urgent government intervention.
Enhancing export support and making it more accessible can help bridge this gap, enabling businesses to seize global opportunities.
