The business secretary, Peter Kyle, has urged small businesses to rediscover Britain’s exporting spirit, calling on entrepreneurs to take a “leap of faith” and start selling overseas with the backing of government finance 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 UK companies that have ever exported has fallen from 45 per cent to 38 per cent in recent years.
Kyle said reversing that trend was a priority for the government, arguing that international demand for British goods and services remains strong. Drawing on 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 exporting for the first time is different, it’s difficult and it’s novel,” he said. “Anything that’s novel takes a bit of getting used to and a bit of confidence and enthusiasm to jump into. Sometimes it takes a leap of faith.”
Kyle suggested many SMEs underestimate both the level of overseas demand and the support available to help them expand internationally. He pointed to the £11 billion trade finance lending package announced at the end of January, funded through the balance sheets of five major high street banks.
Under the scheme, UK Export Finance will guarantee up to 80 per cent of loans, while also providing advisory support to help businesses navigate international markets.
“I understand that the world looks intimidating at the moment,” Kyle said. “I’m not sitting here saying everything’s perfect. But what investors are seeing is the right direction of travel.”
However, business groups warned that encouragement alone would not be enough. Tina McKenzie, policy chair at the Federation of Small Businesses, said many small firms were willing to take the risk of exporting — but only if the government improved its offer.
“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 firms to export, policy needs to make it simpler, cheaper and more predictable, so businesses can take that step with confidence rather than crossing their fingers.”
On stage, Kyle highlighted four trade agreements signed since the government took office, with India, China, the US and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, arguing they provided a foundation of stability. But he acknowledged that signing deals was only the beginning.
“It takes time to get goods flowing and services delivered,” he said. “And it takes a while to get the legal aspects nailed down so the agreements can be fully enforced.”
Some business leaders questioned how much smaller firms would really benefit. Simon Holloway, commercial director at Dynisma, a Bristol-based developer of simulators for Formula 1 drivers, said the complexity of trade deals often left SMEs struggling to engage.
“We don’t have time to figure out what is going on,” he said. “We’re running 100 miles an hour trying to scale our businesses and secure jobs.”
Tim Reid, chief executive of UK Export Finance, accepted that awareness remained a challenge. “Small businesses are good with ideas, but short on time,” he said. “We need to make it as easy as possible for them.”
Despite the obstacles, Kyle argued that periods of uncertainty could also create opportunity. “Be bold and confident in yourself, your skills and fundamentally the products and services your business offers,” he said.
Some companies are already doing just that. Urban Apothecary, a Leicester-based home fragrance brand, now sells into 35 countries. Liz Ripley, its head of global partnerships, said using distributors had helped the business manage risk, with support from the Department for Business and Trade helping it enter new markets such as South Korea.
Paul Sopher, director at Joe & Seph’s, which exports its artisan popcorn from north London to 19 countries, said the department had also been a useful sounding board when assessing new overseas customers.
Kyle ended with a clear message for hesitant entrepreneurs: “I want to see more start-ups and scale-ups taking risks, building up, branching out and breaking into new markets, backed up by government action.”
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‘Thirst for Britain’: Peter Kyle urges SMEs to take leap into exporting