The British Chambers of Commerce (BCC) has warned that Britain’s small retailers are being left behind after big firms benefit from new trade agreements, calling for urgent action to help small businesses to help abroad.
According to the BCC’s latest quarterly trading report, only 16 percent of non-small retailers – companies with less than ten employees – increased sales in foreign countries in the third quarter of this year. In contrast, 42 percent of the largest exporters saw export output increase at the same time, highlighting what the BCC described as “venepde in relation” to the division.
The findings, based on a survey of 4,600 UK businesses conducted between August 18 and September 15, revealed that small firms are struggling to cash in on recent government deals, including those with India, the United States and the European Union.
William Bain, head of trade policy at the BCC, said the widening gap underlined the need for targeted intervention. “The growing disparity between the experiences of the largest and smallest retailers is deeply telling,” he said. “It underlines our call for urgent government action, in partnership with business, to help small firms reap the benefits of trade.”
While nearly half of most exporters (47 percent) said their export volumes remained stable, only 27 percent of minority exporters saw growth, and another 27 percent reported a decline. Last quarter, 29 percent of major retailers reported growth in export orders, compared to 20 percent that saw a fall.
In total, 24 percent of all exporters reported sales of goods abroad in the third quarter, while 22 percent said they received orders for other exports.
Bain said that while businesses had welcomed the government’s fresh trade strategy, which was introduced in June, the benefits did not seem to filter down to the smallest companies. “Large retailers are beginning to feel the effects of improved market access, but small businesses need a lot of support – from helping with paper navigation and materials used to move new papers to entering new markets.”
The BCC report comes as the government prepares for international trade week and is run by the Department of Business and Trade. The fifth annual event will feature a series of in-person and online sessions designed to encourage more UK businesses to deploy and help firms understand the opportunities created by the latest trade agreements.
Sir Chris Bryant, the Exports Minister, said the government was “breaking down barriers to trade” and negotiated more deals to open up new markets. “We are committed to making it easier for British businesses of all sizes to sell their goods and services abroad,” he said.
However, business leaders say the government must go further if the UK is to strengthen its export base. The BCC said that without dedicated support for small and medium-sized firms, the country risks a double trade recovery, where only the most foreign traders benefit from new market access.
Trade experts warn that small companies face unique obstacles, including high compliance costs, limited access to foreign capital, and a lack of culturally and methodologically organized expertise. The BCC has urged the government to extend the credit guarantees behind the shipping documents, and develop digital commercial documents, and improve access to on-the-ground support through UK embassies and trade offices.
For Bayini, the message is clear: “The UK cannot afford its small businesses to be excluded from global markets. If Britain is to be a strong trading nation again, the government must provide the tools and confidence they need to grow abroad.”
As the International Trade Week begins, the spotlight will be on how the Government’s export strategy can finally translate into meaningful opportunities for the thousands of small farms that form the backbone of the UK economy.
