A new paper geared at unleashing a new wave of small business exporters sets out five priorities to make that goal a reality.
The Federation of Small Businesses (FSB) was asked to lead on an SME Export Taskforce by Jonathan Reynolds MP when he was Shadow Business and Trade Secretary, to address the fact that only 10% of small firms trade internationally.
The taskforce, which features input from companies such as Amazon UK, EY, and Santander, found that the current rules make trading difficult, that Government support is confusing and not always helpful, and the firms that do trade do not have adequate advice.
The paper highlighted five key priorities:
- A cross-Whitehall approach to policy: International trade should be made a priority for all Government departments. Domestic and trade policies must be aligned to ensure the UK maximises the benefits from Free Trade Agreements. This means other Whitehall departments and regulators need to be more aware of trade goals and actively contribute to trade negotiations.
- An open relationship with business: Legislation and trade deals should be developed through open and honest discussions that prioritise the needs of small businesses. A Senior Exports Council should also be created to ensure continuous and meaningful engagement with the business community.
- Global leadership on digital trade: The UK should lead the way on paperless trading across the global supply chain.
- Open to export from day one: SMEs should receive immediate support when they start trading internationally, including robust expert guidance and efforts to overcome mindset-related barriers.
- Addressing the finance gap: Improving SME access to trade finance and reducing the financial barriers to trade.
Ben Francis, Policy Chair of the Federation of Small Businesses in Wales, said:
“With the latest data showing a fall in the value of goods exports for Wales, the UK Government must work in partnership with the Welsh Government to reverse this trend and unleash small businesses’ export potential.
“Exporting can boost innovation as businesses adapt to meet global demands, which not only strengthens the individual business but benefits the Welsh economy as a whole.
“Alongside the five-step plan for the UK Government, FSB have long urged the Welsh Government to establish a dedicated agency tasked with growing the number of exporting Welsh firms and to provide businesses with the support they need to grow and thrive in the future.”
Tina McKenzie, Policy Chair for the Federation of Small Businesses, said:
“Our economy has been proving its mettle over the last few years, but to ensure sustainable growth we need to focus on exports. After all, international trade is the ultimate growth hack for small firms – it allows them to tap into new markets and diversify their revenue streams. In turn, exporting businesses are more likely to grow faster and keep their heads above water during tough domestic times. But with only 10% capitalising on those opportunities, we set out today a roadmap of how more can, and should, be done.
“Our taskforce identified several roadblocks – a regulatory environment that ties SMEs in knots, Government support that is a labyrinth to navigate, and those who already export apply an ‘as and when’ approach.
“However, with the right policies, the benefits to local economies across the UK could be enormous. We need to cut through the red tape and lift our small business community to trade globally, easily. We hope this paper will form the blueprint for policies that will change the SME exporting landscape for the better.
“We were pleased to have been asked to lead on this taskforce by the now Secretary of State for Business and Trade, and to have received valuable input from so many critical organisations, business groups and firms. They all recognise the role SMEs play in our economy, both at home and abroad, and we thank them for contributing to this important piece of work.”
Business and Trade Secretary Jonathan Reynolds said:
“Our mission is to bring economic growth to every part of the UK, with small businesses at the heart of our economy.
“I agree with FSB that boosting international trade is a massive growth opportunity for smaller firms; this welcome and thorough report identifies the practical changes needed to boost their exports which this Government will consider urgently.
“This Government is going to work in partnership with FSB and small businesses from across the country to tear down export barriers so they can capitalise on the exciting opportunities to sell more of their goods and services around the world.”
Source: https://businessnewswales.com/taskforce-reveals-five-step-plan-to-supercharge-sme-exports/