Business Secretary Peter Kyle urged small businesses to rediscover Britain’s export spirit, urging entrepreneurs to take a “leap of faith” and start selling abroad with the support of government funding and advice.
Speaking to an audience of small business owners at the UK Trade and Export Finance Forum in London last week, Kyle warned that the UK was losing momentum as an exporting nation. Official figures show that the proportion of British companies that have ever exported has fallen from 45 percent to 38 percent in recent years.
Kyle said reversing this trend was a priority for the government, arguing that international demand for British goods and services remained strong. Recalling recent visits to China, Japan and the World Economic Forum in Davos, he told delegates there was a “great thirst for Britain”.
“I accept that the first export is different, difficult and new,” he said. “Anything that’s new takes a little getting used to and you need a little confidence and enthusiasm to get into it. Sometimes it takes a leap of faith.”
Kyle suggested that many SMEs underestimate both the extent of foreign demand and the support available for their international expansion. He pointed to the £11 billion trade finance credit package announced at the end of January, funded by the balance sheets of five major major banks.
Under the program, UK Export Finance guarantees up to 80 percent of loans while providing advisory support to help businesses navigate international markets.
“I understand the world looks intimidating right now,” Kyle said. “I’m not sitting here saying everything is perfect. But what investors are seeing is the right direction.”
But business groups warned that encouragement alone would not be enough. Tina McKenzie, policy chair of the Federation of Small Businesses, said many small businesses were willing to take the risk of exporting – but only if the Government improved their offering.
“Small businesses need clear, practical help to navigate trade rules, paperwork and market access, particularly when trading with the EU and beyond,” she said. “If we want more companies to export, policy must make this easier, cheaper and more predictable so that companies can take this step with confidence rather than crossing their fingers.”
On stage, Kyle highlighted four trade agreements signed since the administration took office, with India, China, the United States and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, arguing that they provided a foundation for stability. However, he acknowledged that signing contracts is just the beginning.
“It takes time for goods to flow and services to be provided,” he said. “And it will take a while for the legal aspects to be sorted out so that the agreements can be fully enforced.”
Some business leaders questioned how much smaller companies would actually benefit. Simon Holloway, commercial director at Dynisma, a Bristol-based developer of simulators for Formula One drivers, said the complexity of trade deals often made it difficult for SMEs to take part.
“We don’t have time to figure out what’s going on,” he said. “We’re running 100 miles an hour trying to grow our business and secure jobs.”
Tim Reid, managing director of UK Export Finance, admitted raising awareness remains a challenge. “Small businesses have good ideas but are short on time,” he said. “We have to make it as easy as possible for them.”
Despite the obstacles, Kyle argued that times of uncertainty can also present opportunities. “Be brave and trust yourself, your abilities and most importantly the products and services your company offers,” he said.
Some companies are already doing just that. Urban Apothecary, a home fragrance brand based in Leicester, now sells to 35 countries. Liz Ripley, head of global partnerships, said the use of distributors helped the company manage risks and support from the Ministry of Economy and Trade helped it enter new markets such as South Korea.
Paul Sopher, director at Joe & Seph’s, which exports its north London artisan popcorn to 19 countries, said the department had also been a useful resource in assessing new customers overseas.
Kyle concluded with a clear message to hesitant entrepreneurs: “I want to see more start-ups and scale-ups take risks, build, branch out and move into new markets, supported by government action.”
