Background and objectives
SME Export Taskforce: 5 priorities to increase SME exports
In Autumn 2023 the Labour Party invited the Federation of Small Businesses to lead and run an SME Export Taskforce, convening key businesses and organisations to put forward a set of fresh policy recommendations for the next UK Government that would secure a measurable increase in the number of UK SMEs exporting. The recommendations are actions that the UK Government has the power to undertake on its own – and so are in addition to its negotiating positions on the review of the Trade and Co-operation Agreement with the EU due in early 2026, and any prospective trade deal with other nations.
In roundtable sessions held between January and March 2024, the SME Export Taskforce brought together SMEs, finance providers, large corporates and business associations across the UK economy. Participants shared their experiences of international trade and ideas on improving the exporting journey for SMEs, proposals that were then tested and finessed into this document. The resulting recommendations fall into 5 priority areas which reflect the challenges, opportunities and suggestions raised throughout these sessions. We are grateful to the individuals and businesses who generously shared their time and expertise with the Taskforce, all of whom provided invaluable contributions.
The Challenge
The growth opportunities for the UK economy from SME exports are huge. SMEs that export are more likely to grow – and more quickly - and be more resilient in times of economic difficulty than those that do not. There is also clear benefit to the UK for our SMEs to tap into economies that are rapidly growing, when the domestic economy is facing greater challenges. But with just over 10% of SMEs across the UK putting their products and services to market overseas according to Department for Business and Trade, the UK is not yet reaching its full potential.
The challenges and barriers identified by the Taskforce indicated a tendency towards a non-strategic approach to international trade among many of the UK’s SMEs and within historic Government policy, leading to:
- A regulatory and policy environment that should do more to remove burdens on SMEs.
- A government export support offering that can be difficult to navigate and may not always meet SME needs.
- Low numbers of SMEs with export potential participating in international trade, and an ad hoc rather than strategic approach to exports among those that do.
The Taskforce is positive that with the right approach to policy and support, many more SMEs can be empowered to start or increase their trade activity. A holistic approach that creates the right environment for international trade is needed, including recognition of how Government and a diverse private sector can complement each other to deliver the best possible conditions.
Five export priorities
To supercharge SME exporting, the Taskforce recommends:
- A cross-Whitehall approach to policy: Embedding trade across all relevant government departments, from a ‘quality-not-quantity’ approach to Free Trade Agreements to an international competitiveness ‘filter’ applied to policy design.
- An open relationship with business: An open, honest, and two-way approach to shaping legislation and trade deals and delivering Government guidance effectively.
- Global leadership on digital trade: Leading the way on delivering the benefits of paperless trading across the whole supply chain.
- Open to export from day one: Delivering a robust export support offering that meets SME needs and tackling attitudinal barriers to trade.
- Addressing the finance gap: Improving SME access trade finance and reducing the financial barriers to trade.
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