Spreading Wings: Taking Innovative SMEs Global

The UK is a leading global technology hub and the world’s fourth-largest exporter, with digital trade accounts for around half of total UK exports, growing three times faster than other sectors. Yet behind this headline success sits a stubborn gap. Fewer than 12% of UK small and medium-sized enterprises export internationally. For a country that prides itself on innovation, this is a missed opportunity.

Our new report, Spreading Wings: Taking Innovative SMEs Global, sets out how we can close that gap and unlock the full export potential of the UK’s tech SMEs.

Why SME exports matter

SMEs account for 60% of UK employment and 52% of business turnover. They are often the source of cutting-edge innovation across AI, quantum, cyber security, fintech, telecoms, defence and smart cities. However, despite strong national export performance, too few SMEs are present in international markets. At 11.6%, the proportion of UK SMEs that export lags behind many peer countries, particularly among firms with 10–249 employees.

Exporting is strongly linked to productivity and innovation. Firms that trade internationally are more likely to develop new products and services, and to scale faster. Smaller firms are often especially agile, translating insights from overseas markets into competitive advantage at home.

Boosting SME exports is therefore not just about trade policy. It is central to the UK’s economic strategy, long-term growth and global competitiveness.

What is holding SMEs back?

Drawing on interviews with senior leaders from 34 techUK SME members, our report identifies persistent and practical barriers to international expansion:

Many firms praised targeted support from specific departments and overseas networks. However, others described the overall landscape as complex and difficult to navigate. For high-growth firms moving at pace, that friction can be the difference between success and stalled expansion.

Five recommendations to close the SME export gap

We believe the UK has a strategic opportunity to act now. Our report sets out five recommendations to strengthen the ecosystem for high-growth technology exporters:

Together, these steps would make export support clearer, more responsive and more aligned with the realities of scaling a tech business.

A strategic opportunity for growth

As Sabina Ciofu, Associate Director for International Trade and Strategy Lead, Policy, techUK, explains:

“The UK has a strategic opportunity to close the SME export gap and fully realise the country’s digital trade potential. Supporting SME exporters is one of the most effective levers available to drive productivity and restore growth across the UK. For smaller firms, timely and well-designed support can be transformational, often determining whether international expansion succeeds or stalls.”

Read the report

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.