British exporters feel increasingly ill-equipped to seize international opportunities, according to the latest annual survey commissioned by the Department for Business and Trade.
The survey of 3,000 businesses with a turnover of more than £500,000 found that only 18% considered themselves experts in exporting last year, down from 24% the year before. This is the lowest level since the UK’s trade and cooperation agreement with the EU came into force in 2021.
The percentage of companies reporting low knowledge exports rose from 23% in 2022 to 28% last year, while the rest admitted they could cope but saw the need to improve their expertise. The findings indicate a growing knowledge gap among exporting companies, especially following Britain’s departure from the EU.
This decline in expertise has coincided with calls from a consortium of major technology companies and business support groups for the government to increase export support for small businesses as part of its revised industrial and trade strategy. The E-Commerce Trade Commission, which includes members such as Amazon, Alibaba, eBay, Shopify and Google, along with business organizations such as the Federation of Small Businesses, has urged the government to simplify and place greater emphasis on official guidance on e-commerce and digital trade tools, and provide more subsidies.
Richard Hyde, senior researcher at the Social Market Foundation and author of the committee’s report, emphasized the importance of increasing exports among small businesses. He commented: “The vast majority of UK businesses are smaller businesses, but too few of them are currently exporting. Achieving higher levels of exports should be an important lever for the government’s growth mission.”
Gareth Thomas, the export minister, recognized the need to boost digital trade and support small businesses in their global exports. He said: “We are working with industry to boost digital trade so that 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 research also found that while 40% of businesses sought advice and support last year, awareness of specific government-funded resources, such as the International Trade Advisors Network and the Export Support Service, remains low. The most commonly used source of advice was the main government website, used by 45% of respondents.
Despite seeking support, the share of companies that have ever exported has fallen since 2021, 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 to be. search for new export opportunities.
The E-Commerce Trade Commission also emphasized the need to encourage more women-led businesses to export and make opportunities in emerging markets more accessible. They argued that tailored and easily accessible support could help bridge the knowledge gap and enable more SMEs to contribute to the UK’s growth through increased exports.
The findings underline the need for targeted government interventions to better equip UK businesses with the tools and knowledge needed to thrive in global markets, especially as Britain continues its post-Brexit trading landscape.