SMEs form the backbone of the UK economy, employing 16.7 million people and contributing £2.4 trillion annually. These businesses are vital to the nation's economic health. However, despite the previous government's efforts to boost exports and tap into global economic opportunities, increasing bureaucratic and logistical hurdles have led to a sharp decline in the UK’s goods exports since 2019, a contraction more severe than in any other G7 nation.

Nonetheless, UK businesses remain committed to diversifying their revenue streams in new and emerging markets, despite economic uncertainties and geopolitical disruptions to supply chains. Last year, HSBC estimated that around 450,000 UK brands were keen to explore international opportunities.

Umar Butt, Regional CEO – UK and Europe at Aramex, emphasised the critical role of SMEs as growth engines for the UK economy. He highlighted the necessity of providing these businesses with the resources and regulatory support needed to capitalise on opportunities beyond the domestic market, ensuring their growth and sustainability.

Umar Butt commented: “We currently live in an era where for the most part businesses are no longer limited by geographical proximity, and as such have the luxury of being able to tap into new and unique markets far beyond their domestic borders. The rise in digitalisation and online marketplaces have played a significant role in this, helping to revolutionise modern-day commerce and offering UK brands unprecedented opportunities for international expansion that were previously inaccessible.

“Exports are a key driver of economic growth, yet only around 10 per cent of UK businesses sell their goods to non-UK customers, therefore it’s no secret that if the economy is to get back on track, the Labour government should be investing time and resource into enhancing support for SMEs seeking to diversify into international markets, while also quashing the frustrating roadblocks they face on a day-to-day basis.

“Since the pandemic, most advanced countries have witnessed a bounce-back in goods trade, however the UK hasn’t, which is unusual. Reducing the amount of unnecessary red tape and providing bespoke guidance for businesses would go a long way to fostering growth and reversing the decline in UK goods exports over the coming years.”

To provide their own support to SMEs, Aramex UK has recently introduced its SME program, which pledges to avoid implementing any volume caveats, credit restrictions or price limits for low volumes, enabling businesses to compete in an increasingly competitive global marketplace by removing any unnecessary barriers – all with the aim of providing businesses with a springboard to realise their full potential on the international stage.

Umar continued: “In recent years we as a business have looked to make global expansion more accessible for SMEs by providing tailored support services and simplifying the end-to-end logistics process, however these initiatives will only go so far. Responsibility now lies with the government to pull up the shutters by publishing a trade strategy that is realistic and delivers clear advice to get more businesses exporting.

“From our own analysis we have actually witnessed a swelling ambition among SMEs to trade internationally, which should encourage the existing government to accelerate plans to facilitate this. However, more needs to be done in Westminster this time around to provoke further confidence that expanding internationally is feasible for SMEs, provided the right support and regulatory infrastructure are in place.

“As a part of this, the government must avoid a one-size-fits all approach to its messaging and educational materials. Without the correct advice to hand, the prospect of exporting to new markets becomes an incredible daunting task, especially to those making their first steps on this journey.”