The Untapped Potential of Scaling Internationally for UK SMEs

As a business owner and advocate for global expansion, I have noticed a stark contradiction within the UK economic landscape.

Although there are 5.5 million SMEs across the country, less than 10% of them engage in international trade. This is a huge missed opportunity; Exporting offers a range of benefits that can stimulate business growth, enhance productivity, and encourage innovation. Moreover, it also allows companies to diversify their risk exposure, which is especially important in today's global economy.

SMEs often view the journey to export as fraught with obstacles, from fear of unknown markets to cost concerns. In fact, the Department of Business and Trade's National Survey of Export Behaviours, Attitudes and Needs of Registered Businesses highlights perceptions of administrative costs, burdens and offshore regulations as the most common barriers to exporting, affecting one in four (26 per cent ). ) of the companies included in the study.

Despite these challenges, I firmly believe that with a strong export strategy, these barriers can be overcome – and in some cases, they are not actually barriers at all. Some direct steps can significantly enhance the export potential of SMEs.

Practical steps to start selling internationally: agents and distributors

Before embarking on your export journey, it is essential to assess the resources available within your team to manage export activities. Will you have one employee handling the export function? Do you have the capital to fund visits to your target market to meet potential buyers and understand the end customer?

This is where engaging in export programs can be particularly valuable. At the beginning of our journey, we participated in a program run by the Department of Business and Trade (DBT) which provided basic knowledge about working with distributors and agents. Additionally, the free webinars offered by the British Export Academy are an excellent resource for business owners, covering a range of topics from initial steps to in-depth market information.

If you are exporting goods, finding a sustainable distributor or agent is key, as it can greatly impact your market access. An agent acts on behalf of the company to negotiate and conclude sales without owning the goods. Meanwhile, the distributor purchases goods from the company and resells them to his customers.

For an agent, owners must take into account the cost of commissions as well as develop a structure that you can leave in the hands of the agent. While the distributor acts as your boots on the ground and allows you to sell the product directly to them. Both have pros and cons, but the choice ultimately depends on your company's strategy, the nature of the product, and specific market conditions. We found that finding a good distributor helped us expand from zero to 400 stores in just a few months!

Access a range of free resources

You might think that access to expert advice, guidance and contacts would come at a cost, but the Department for Business and Trade offers a range of free services businesses looking to trade internationally can take advantage of. This may include giving you access to an International Trade Advisor (ITA) to provide individual and unbiased support on a myriad of topics such as reviewing your export strategy, connecting you with relevant contacts in international markets, providing advice on language and culture and dealing with legal issues. And organizational.

There are also a range of free resources on the DBT website, which offer expert guidance, tools and services on topics including comprehensive market guides to help you understand the right market for your product or service, as well as detailed insights on topics such as duties, taxes, customs and tariffs.

Unlocking the benefits of global expansion

For UK SMEs, exporting is a pivotal option to expand beyond domestic borders. International markets provide a broader customer base, greater revenue potential, and the ability to spread risk across multiple regions. Exporting can increase sales and profits, as some international markets may have higher demand for goods and services from the UK, allowing companies to charge a higher price. They also provide a competitive advantage and drive economies of scale, which can enhance profitability.

Moreover, exporting can accelerate business innovation. Launching products in similar markets abroad can serve as a testbed for innovation without risking the brand's reputation domestically. The lessons learned can then be applied to improve UK businesses.

As the UK redefines its global role post-Brexit, it is essential that businesses seize international opportunities. Exporting should not just be an option; It is a strategic necessity for SMEs aiming to thrive in the global market. With the right approach and support, your export journey can lead to a world of untapped potential and prosperity.


Julian Bonan

Julianne is a pioneer in the world of freedom from the world. She was diagnosed with severe anaphylaxis when she was 2 years old, and has multiple allergies to all types of peanuts, tree nuts, sesame, chickpeas and more. She is the founder and CEO of Creative Nature, one of the top 14 allergen-free brands, and through her own experiences and challenges of living with allergies, she has focused Creative Nature on being at the forefront of “free-from” innovation, pushing boundaries and launching a range of innovations. Free from good nutrition foods from bread to snacks! In recognition of her outstanding contributions to business, exports and helping individuals with allergies, Julianne was honored with an OBE in the New Year's Kings Honors in 2023. Creative Nature has grown from strength to strength to drive change for zero-food food in the industry Aviation. Product launches on board Virgin Atlantic and more. The brand is also present in Sainsbury's, Ocado, Co-op, Asda and Tesco exports to 16 countries including the UAE. Julianne also serves as a Non-Executive Director of GS1 UK and holds the position of Export Policy Champion at the FSB and Export Champion at the Department for Business and Trade. In recent months, Julianne was selected to join the Prime Minister's Small Business Council, acting as the voice of small businesses across the country. In addition to her roles at the company, Julianne is a passionate advocate for people with allergies, striving to improve their lives and reduce the stress associated with their condition.

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