A growing divide between the fortunes of different sized UK exporters shows that the government must provide more exporting help to small businesses, the British Chambers of Commerce (BCC) has warned.
In figures released on day one of the Department for Business and Trade’s International Trade Week, the BCC found that in the third quarter of the year, only 16% of micro-exporters, businesses with fewer than 10 employees, increased export orders, 27% reported a fall, and 57% reported no change.
In contrast, 42% of large exporters (those with more than 250 staff) saw a boost in overseas orders, 11% reported a decrease, and 47% said they’d seen no change.
Sentiment among all exporters was weak, with most struggling to see improved sales or orders. Only 24% reported increased overseas sales, while 22% of all businesses saw a boost in orders.
Analysis by the BCC shows a 2% increase in UK exports would increase growth by 0.6%.
The report said the data indicates the government needs to take “urgent action” in the Autumn Budget to to help increase exports. The BCC is calling for a trade accelerator programme for UK firms, reforms to customs systems, and a consultation. on a UK carbon border adjustment mechanism.
William Bain, head of trade policy at the BCC, said:
“The growing disparity between the experience of the UK’s largest and smallest exporters is deeply concerning.
“It underlines our call for urgent government action, in partnership with business, to help smaller firms reap the benefits of trade.
“Boosting exports is the quickest way to grow our economy, and our data should be a wake-up call for policymakers.
“Business welcomes the real progress made on trade deals with the US, EU and India in recent months, and the Trade Strategy, launched at the BCC’s Global Annual Conference in June.
“As these deals and strategies are implemented, new smaller exporters need greater help to fully reap the benefits.”
Comments from small businesses about exporting
“Brexit continues to impact our European business. Trump has had a major effect on our US sales.” Small manufacturing firm in East Lancashire
“Challenging times to run a small business that exports globally – we just can’t cope with another tax raid in the Autumn.” Small manufacturing firm in Cornwall
“Having just lost all sales to the EU due to the uneconomical costs of GPSR and packaging registration, we are now facing the loss of one of our main clients…USA due to De Minimis changes. This accounts for 50% of our income.” Micro services firm in Cumbria
“I’m not confident as the ability to trade with Europe is very difficult so we lost our markets due to Brexit, and our ability to trade with the USA is very hard and expensive due to tariffs and business uncertainty.” Micro services firm in the West of England
“Continued problems at ports, which impact imports and exports. Should look to join a customs union with the EU for food, drink and animal products.” Small manufacturing firm in Ayrshire
“This year our export business to the US has almost dried up completely after Donald Trump announced the tariffs. Although he reversed them our US customers are nervous, he’ll change his mind again. Shipping costs are increasing which is putting off buyers from elsewhere in the world.” Micro manufacturing firm in the West of England