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0 British business has long been a powerhouse across the globe – in fact, the UK ranks seventh in the world for export activity. But while multinational operations from Land Rover to Burberry may dominate the headlines with their sizeable exports, British SMEs make their mark worldwide too. In fact, SMEs made up 84% of all UK goods exporters in 2021.
“Many small firms that trade internationally may not consider themselves as exporters,” says Lucy Monks, head of international affairs at the Federation of Small Businesses (FSB). “But in fact they are, even if they sell their goods or services overseas on a smaller scale than the big corporations.”
The benefits of selling internationally can be significant. Goods-exporting businesses are on average 21% more productive. Product and service innovation is often also quicker and more advanced, with international perspectives providing valuable insight.
“Exporters tend to be among the most profitable and innovative small businesses,” says Monks. “The digital economy presents a huge opportunity for small firms to reach new markets and customers. We see a lot of appetite and interest in this space, especially after the Covid pandemic, which accelerated the shift to online sales.”
Lesley Batchelor CBE is the former director general of the Institute of Export and International Trade. She now runs Export-angels.com, helping create market intelligence for clients, and leads workshops and bootcamps teaching businesses how to gain traction internationally. For entrepreneurs looking to export to markets for the first time, she says understanding them is hugely important.
“You need to find out what’s going on in your potential new market, whether it’s pitching a price correctly, what the competition is doing, or whether your goods or services can even be sold in that country, along with other legal implications,” says Batchelor. “If you sell goods, think about how much it costs to get them there, whether you’ll use distributors or an agent, and any extra costs you’ll incur. You might need to consider packaging changes or new delivery channels. In other words, don’t just wing it.”
Advice can be found in a variety of places, says Monks. “Expanding your business into global markets is a big growth step and can be nerve wracking. Talking to any of your peers who have been through the exporting process could be useful. And there are plenty of resources available for new starters, including government help and FSB’s international trade hub. It’s important that you keep your eyes open and get prepared before you break into a new market.”
Aspuna Group is one of the many examples of British SMEs exporting, be they goods or services, around the world. Co-founder Maria-Yassin Jah set up the social-impact commodities business in 2016 with two other industry professionals she met while studying for an executive MBA at the University of Cambridge. With backgrounds in commodities, Jah says they “knew that the communities where raw materials originated were failing to benefit from the value they produced”. This knowledge underpins the group’s focus on creating ethical supply chains to international markets.
The London-headquartered company looks to build processing capacity within rural communities, and has factories in the Gambia, Nigeria and Tanzania that enable smallholder farmers to process crops such as cassava, potato and maize. The team now uses its expertise and technical knowledge to partner with other entrepreneurs seeking to set up crop-processing factories in sub-Saharan Africa.
Aspuna leads the design, development and implementation of new factories. Besides process engineering support, it provides assistance in branding, marketing and sales for those wishing to explore the wider African, European, or US retail sectors. The company is working on new opportunities in Uganda, Sierra Leone and Mozambique.
The benefits of exporting its project-development services have been significant, Jah says. “Partnering with local entrepreneurs allows us to be much more embedded into the communities in a way that we couldn’t if we just came in as a foreign investor. British business, I think, is certainly associated with quality and professionalism but also an element of flexibility in the way we approach business. Our cultural agility has been welcomed.”
It has built relationships partly through taking advantage of the founders’ own networks via the University of Cambridge, but also through the Department for Business and Trade (DBT), previously the Department for International Trade. “DBT has been really helpful to us as a trusted entity, particularly in countries where we’ve not had any dealings before, and sometimes not even travelled to previously,” says Jah. “[Africa] is full of great opportunities, but it’s important you have someone you can trust to make connections for you.”
A study from 2020 found that 375,000 UK SMEs have exportable goods but are not currently selling internationally. The first step to exporting is to have confidence in your company’s ability to have an impact far and wide, says Monks. “If you’ve got a viable product or service, there’s going to be a market for it somewhere around the world.”
Wherever you are on your exporting journey, the Department for Business and Trade can help. Access a wide range of free support and find out how your business can sell to the world at great.gov.uk
