UK exporters appear to be increasingly ill-prepared to take advantage of international opportunities, according to the latest annual research commissioned by the Department for Business and Trade.
The survey of 3,000 businesses with revenues of more than £500,000 found that just 18% considered themselves export experts last year, down from 24% the year before. It is the lowest level recorded since the UK-EU trade and cooperation agreement came into force in 2021.
The proportion of companies reporting low levels of export knowledge increased from 23% in 2022 to 28% last year, with the remainder admitting they were able to manage but seeing a need to improve their expertise. The findings suggest a growing knowledge gap among exporting companies, particularly following Brexit.
The decline in experience coincides with calls from a consortium of major tech companies and business support groups for the government to boost export support for small businesses as part of its revised industrial and trade strategy. The e-commerce commission, which includes members such as Amazon, Alibaba, eBay, Shopify and Google, along with trade bodies such as the Federation of Small Businesses, urged the government to streamline official guidance, focus more on e-commerce and digital commerce tools, and provide more grants.
Richard Hyde, senior research fellow at the Social Market Foundation and author of the Commission’s report, highlighted the importance of increasing exports among small businesses. “The vast majority of UK businesses are small, but only a small number currently export. Achieving higher levels of exporting should be a key lever of the government’s growth mandate,” he said.
Exports Minister Gareth Thomas acknowledged the need to boost digital trade and support small businesses to export globally. He said: “We are working with industry to boost digital trade so more small businesses can export around the world, and our modern industrial strategy will help us deliver stable, long-term growth that supports skilled jobs.”
The survey also revealed that while 40% of businesses had sought advice and support in the past year, awareness of specific government-funded resources, such as the International Trade Advisers Network and the Export Support Service, remained low. The most widely used source of advice was the government’s main website, used by 45% of respondents.
Despite seeking support, the proportion of companies that have previously exported has been declining since 2021, falling from 45% that year to 39% in 2023. Most exporters reported that they are not actively seeking new overseas orders, while only 27% said they are actively seeking new export opportunities.
The E-Commerce Committee also stressed the need to encourage more women-led businesses to export and make emerging market opportunities more accessible. They argued that tailored and accessible support could help bridge the knowledge gap and enable more SMEs to contribute to UK growth through increased exports.
The findings underscore the need for targeted government interventions to better equip UK businesses with the tools and knowledge to succeed in global markets, particularly as the UK continues to navigate its post-Brexit business landscape.
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