The British Chambers of Commerce (BCC) has warned that Britain’s smallest exporters will be “left behind” as larger companies benefit from new trade deals, and is calling for urgent government action to help smaller companies expand abroad.
According to the BCC’s latest Quarterly Trade Confidence Report, only 16 percent of micro-exporters – companies with fewer than 10 employees – reported growth in international sales in the third quarter of this year. In contrast, 42 percent of larger exporters reported an increase in exports over the same period, highlighting the gap described by the BCC as “deeply concerning”.
The findings, based on a survey of 4,600 British businesses conducted between August 18 and September 15, show that smaller companies are struggling to capitalize on the government’s recent trade deals, including those with India, the United States and the European Union.
William Bain, head of trade policy at the BCC, said the widening gap underscored the need for targeted interventions. “The growing gap between the experiences of Britain’s largest and smallest exporters is deeply worrying,” he said. “It underlines our call for urgent action from government in partnership with business to help smaller businesses reap the benefits of trade.”
While almost half of large exporters (47 percent) said their export volumes remained stable, only 27 percent of small exporters reported growth and another 27 percent reported declines. In the previous quarter, 29 percent of major exporters reported an increase in export orders, while only 20 percent reported a decline.
Overall, 24 percent of all exporters reported increasing foreign sales in the third quarter, while 22 percent said they had secured more new export orders.
Bain said that while businesses welcomed the government’s renewed trade strategy, launched in June, the benefits were still not trickling down to the smallest businesses. “Larger exporters are starting to feel the impact of improved market access,” he said, “but small and micro businesses need more practical support – from help dealing with paperwork and logistics to tailored advice on entering new markets.”
The BCC’s report comes as the government prepares for International Trade Week and is prepared by the Ministry of Economy and Trade. The fifth annual event will feature a series of face-to-face and online sessions aimed at encouraging more UK businesses to export and helping businesses understand the opportunities created by recent trade deals.
Sir Chris Bryant, the exports minister, said the government would “reduce trade barriers” and negotiate additional deals to open up new markets. “We are committed to making it easier for British companies of all sizes to sell their goods and services abroad,” he said.
But business leaders argue the government needs to go further if the UK wants to strengthen its export base. The BCC said that without targeted support for small and micro businesses, the country risks a two-track trade recovery with only the largest exporters benefiting from new market access.
Trade experts warn that smaller companies face unique obstacles, including higher compliance costs, limited access to export finance and a lack of local customs and regulatory expertise. The BCC has called on the government to expand export credit guarantees, simplify digital trade documentation and improve access to local support from UK embassies and trade offices.
For Bain, the message is clear: “The UK cannot afford for its smallest businesses to be excluded from global markets. If the UK is serious about becoming a trading nation again, the government must give SMEs the tools and confidence they need to grow abroad.”
As International Trade Week begins, the focus will be on whether the Government’s export strategy can finally deliver meaningful opportunities for the thousands of smaller businesses that form the backbone of the UK economy.
