How Can British SMEs Begin Their Exporting Journeys?
•February 10, 2026
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Companies Mentioned
Why It Matters
Exporting provides a critical outlet for revenue growth as domestic demand stalls, and unlocking SME participation can boost the UK’s trade balance and job creation.
Key Takeaways
- •47% of UK firms eye overseas growth.
- •Only 11% of firms currently export.
- •Government offers Repeat Order Guarantee for working capital.
- •Start with markets matching core capabilities.
- •Digital tools enhance supply chain resilience.
Pulse Analysis
The UK’s post‑Brexit trade landscape is reshaping how small and medium‑sized enterprises view international markets. While domestic demand has plateaued, global appetite for British products and services remains robust, especially in sectors where the UK enjoys a reputation for quality and innovation. Psychological barriers—fear of complexity, perceived costs, and geopolitical volatility—still dominate SME decision‑making. However, the rise of cloud‑based market intelligence platforms, e‑commerce gateways, and fintech solutions is democratizing access to foreign customers, allowing firms with modest budgets to test demand without committing extensive resources.
A pragmatic export strategy begins with pinpointing markets where a company’s core competencies align with local needs. Trade advisors and chambers of commerce can supply granular data on demand gaps, regulatory environments, and competitive dynamics. Simultaneously, SMEs should conduct a lightweight risk assessment that maps geopolitical exposure, tariff implications, and payment security. Instruments such as the UK Export Finance Repeat Order Guarantee and export credit insurance mitigate financial uncertainty, while clear understanding of Free Trade Agreements prevents costly compliance missteps. By treating export readiness as a series of incremental steps—market selection, financing, compliance—businesses can transform perceived risk into calculated opportunity.
Resilience is the final pillar of sustainable exporting. Diversifying across regions cushions firms against localized disruptions, and digital supply‑chain tools provide real‑time visibility into shipment status, customs delays, and inventory levels. Secure data exchange protocols protect intellectual property when collaborating with overseas distributors, and rigorous partner vetting safeguards against sanctions breaches. When SMEs embed flexibility into their go‑to‑market plans, they not only navigate today’s volatility but also position themselves for long‑term growth in an increasingly interconnected global economy.
How can British SMEs begin their exporting journeys?
For many small businesses, international trade can feel intimidating. Recent geopolitical tensions and unstable supply chains have created a sense that exporting is only for large companies with big budgets.
There’s also a less discussed barrier at play: psychology. British SMEs are often cautious by nature, and rightly so. For founders and leaders who have built their businesses carefully, the perceived risks of exporting can loom larger than the potential rewards. This risk aversion is understandable, but it is also holding many capable businesses back.
But the long term trend shows that UK SMEs are increasingly looking outward because growth at home feels constrained. Santander research recently found that 47% of UK businesses are considering international expansion, largely driven by concerns about stagnant domestic demand.
At the same time, only 11% of UK businesses export today, and most of these are larger enterprises. This means the majority of SMEs are leaving potential revenue on the table.
From my perspective at BExA, and as someone who has helped UK SMEs forge trade paths into complex new markets, I believe now is as good a time as any for businesses to begin their export journeys. The global environment might be fraught with uncertainty, but periods of change have always created opportunities for those willing to adapt. In many ways, we are seeing the need for a resurgence of the ‘export merchant’ mindset, digitally enabled for the future: smaller, agile firms using technology, data and networks to reach global customers without needing a traditional export infrastructure.
Encouragingly, the UK government has recently expanded its support for SMEs, including with tools such as UK Export Finance’s Repeat Order Guarantee, which can help smaller companies unlock working capital for new orders. There remains a degree of stigma around anything labelled ‘government’, but this support is not about replacing commercial decision making. It is about backing British businesses and working alongside industry to help SMEs grow internationally. We should not be competing with ourselves; we should be supporting our colleagues across the UK to succeed.
Where should UK SMEs begin?
Identifying the right market
Exporting always involves a degree of uncertainty. The challenge for SMEs is not to eliminate risk, but to approach it in a structured and informed way. That starts with identifying markets where your capabilities genuinely match local demand, and where the perceived risk is often lower than assumed.
A manufacturer targeting India or the Gulf region, for example, will need to invest time in building local relationships and understanding cultural considerations before committing capital. By contrast, a service based SME selling into Europe might find faster entry by focusing on high value professional or technical services where UK expertise is already well recognised.
This is often the point where hesitation sets in. Faced with too many options, or headlines that make overseas markets feel unstable, many SMEs choose inaction. Rather than aiming for the biggest economy or the trendiest region, start by mapping your strengths against the specific needs of a small group of target markets. Trade advisors, chambers of commerce and export support organisations can help SMEs understand where those natural fits exist.
Understand the risks and assess geopolitical exposure early
Geopolitics are influencing trade more than ever. SMEs can’t ignore tariff changes, regulatory shifts and transport disruptions, but they also shouldn’t let them become barriers to exporting.
At BExA, we encourage SMEs to conduct a simple risk assessment before entering any new market. That might include exploring whether to sell through a trusted intermediary, or learning from peers who have already entered similar markets. This process often reduces anxiety, because it replaces vague fears with concrete information and shared experience.
Financial risk is another area where perception and reality can diverge. Export credit insurance and government backed finance schemes can protect against late payments or unexpected shocks. Many SMEs assume these tools are complex or inaccessible, but they are increasingly designed with smaller businesses in mind. Used correctly, they can make exporting feel less like a leap into the unknown and more like a calculated next step.
Understanding trade agreements, customs, and compliance
One of the most common pitfalls for first time exporters is misunderstanding customs rules or assuming that a Free Trade Agreement removes all friction. FTAs can reduce tariffs or simplify paperwork, but they always come with detailed rules of origin and product specific requirements. These details matter.
Before exporting, SMEs should take time to understand which trade agreements apply and what documentation is required. Even a small compliance error can delay shipments or create unexpected costs. The UK has a growing number of trade agreements in place, and many of them offer genuine advantages for SMEs. The important step is to review the fine print and, if needed, seek advice from customs brokers or trade specialists.
Investing a few hours in understanding these requirements can save weeks of corrective work in future.
Build resilience by planning for unpredictability
The most successful exporters I work with are not the ones with the most capital or the largest teams. They are the ones that plan for flexibility. Unpredictability has become a
constant feature of global trade, whether due to logistics disruptions, sudden regulatory shifts or geopolitical tensions. SMEs cannot eliminate these risks, but they can build strategies that help them stay agile.
Diversifying markets is one effective approach. Selling to more than one region protects your business from localised disruptions. Building strong partnerships with trusted local distributors or agents also provides real time insight into changing conditions on the ground. Increasingly, SMEs are using digital supply chain tools to monitor shipments, assess delays and adjust inventory in real time.
Security considerations matter too. SMEs should vet international partners carefully and protect their systems from cyber risks. A manufacturer sharing product data with overseas distributors needs secure digital channels and clear data agreements. A logistics firm working across multiple borders should verify that freight partners follow appropriate sanctions and compliance rules. These steps may feel technical, but they build the foundation for long term resilience.
A final word to first time exporters
International trade can seem daunting, particularly for risk aware SMEs navigating an uncertain world. But British businesses are far more capable of exporting than they often believe. Global demand for UK products and services remains strong. Support is available, both from government and from peers who have already taken the leap.
Exporting is not about abandoning caution. It is about managing risk intelligently, working collaboratively and taking advantage of the tools now available. Once SMEs break through the psychological barrier of starting, many discover that exporting is not only achievable, but an essential route to growth in a competitive global economy.
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