Global Growth for All: Unlocking Trade for UK SMEs

The UK Government has put growth at the heart of its agenda. Increasing international trade is a powerful way to achieve that goal. If exports increased by just 1%, it would add over £8.7 billion to the economy.

Many larger businesses already have well-established networks, supply chains and teams around the world that enable them to trade internationally with relative ease.

But for Britain’s SMEs – who make up 99% of our business population – the options are more restrictive. Research has found that a fifth (20%) say they’re held back by the red tape and paperwork that exporting creates, and a similar number (19%) cited regulatory barriers as negative influences to their opportunities.

In a world where cross-border commerce is increasingly seamless for consumers, it shouldn’t be labyrinthine for businesses.

Everybody wins when SMEs trade

Trade should be an open door, not a locked gate, and the businesses that are the engine room of the UK need to be afforded all the opportunities they deserve. Policy, infrastructure and tech must be the enablers of growth, so that it’s just as easy to sell to someone in APAC or Europe as it is in the UK.

It should matter to all of us. Research from the Social Market Foundation found that, by increasing the number of SMEs that export goods by 70,000, £9.3 billion a year could be added to the national income and create 152,000 additional jobs. Helping them succeed means we all win.

Opening the doors to opportunity

Recognising the criticality of breaking down trade barriers the E-Commerce Trade Commission was established in 2023 – and which Shopify is a board member of, with the goal of identifying both the obstacles and catalysts that would enable more SMEs to trade internationally.

Through its Small Business, Big Ambition report launched last month, the Commission highlighted four key areas where policy change could open trade options for growing businesses:

Simply put, to help the government deliver on its growth ambitions, Britain’s SME’s need support structures in place that take the headache out of trade. The new Trade Strategy should certainly help to remove some of those barriers and open up new markets, but SMEs need support wherever they can.

Harnessing tech-enabled trade

Alongside policy changes, technology is levelling the playing field for expanding SMEs, and enables them to operate on the world stage as if they were an established multinational enterprise. AI is already making a difference, from helping them create copy for storefronts to creating product imagery. It can also take the pain out of market expansion, such as translation and local market pricing.

Opening the doors to international trade isn’t going to happen overnight, and there’s no single answer. It will take coordinated action from government, industry and commerce service providers to remove the systemic barriers that limit entrepreneurial growth.

At Shopify, we see every SME as a potential global success story. And, while tech is already playing a role to make it easier to expand, policy changes need to be made that simplifies trade and makes the global playing field more equitable. That means cutting through red tape, aligning digital standards, and delivering export support tailored to small businesses.

With the right policy changes, we can unlock the full potential of UK SMEs, creating jobs, growing the economy and empowering others to take the leap into their entrepreneurial dreams.

techUK International Policy and Trade Programme activities

techUK supports members with their international trade plans and aspirations. We help members to understand market opportunities, tackle market access barriers, and build partnerships in their target market. Visit the programme page here.