Small Exporters Are Being Left Behind – And The UK May Be Missing Out On Growth

New figures from the British Chambers of Commerce (BCC) highlight a growing imbalance in export performance. Over the summer, most micro-exporters (businesses with fewer than 10 employees) reported flat or falling overseas orders, while larger companies continued to see growth.

This pattern appears across export sales, new orders and confidence levels. Smaller firms are not only expanding more slowly – many are losing ground altogether. The BCC estimates that modest export growth among small businesses could add several percentage points to national GDP, underscoring the scale of the opportunity.

Why micro-exporters face greater barriers

Several of the pressures are structural. Post-Brexit trade with the EU now involves customs declarations, broker services and “rules of origin” paperwork for every shipment. These processes introduce fixed administrative costs that don’t scale with the value of goods.

A customs broker typically charges a similar fee whether processing a large, high-value shipment or a single low-value order. Courier and administrative handling fees work in the same way. Larger exporters can absorb these costs across higher volumes; micro-businesses often cannot.

Beyond Europe, differing product standards, certifications and documentation requirements create further fixed costs. Large firms can spread these across multiple markets. Smaller exporters face the same obligations but with fewer sales to offset them.

Tariff changes and wider uncertainty have added to the challenge. According to the ONS, around a quarter of UK businesses cite economic uncertainty as a key pressure. For micro-exporters operating on tight margins, these conditions often lead to delayed or reduced investment in overseas markets.

The scale advantage

Larger companies tend to have established export teams, specialist advisers and the cashflow to manage long payment cycles and diversify risk across multiple regions. Micro-businesses, with limited staff and budget, often rely on owners to manage compliance and logistics themselves. Government support programmes exist, but can be time-consuming and harder for very small firms to use effectively.

Managing financial risk when trading internationally

Although many challenges stem from structural issues, micro-exporters can take practical steps to manage immediate financial risks, including:

• Business insurance to protect goods in transit, where a single lost shipment could have a noticeable financial impact
• Cashflow tools, such as business credit cards for smaller overseas expenses or overdraft facilities to bridge short-term gaps
• Business loans to support scaling in markets where demand is already proven
• Building financial reserves through business savings accounts to offset payment delays

What this means for UK growth

With export growth concentrated among larger firms, fewer businesses are benefiting from international demand. This also limits the distribution of export-driven growth across the UK, as many micro-businesses are based in regional economies that rely on small enterprise activity.

At the same time, the UK has thousands of micro-businesses producing competitive goods but facing transaction costs that outweigh the returns from low-volume exporting. The BCC’s research suggests the gap may continue to widen as compliance requirements evolve and geopolitical uncertainty persists. Without changes to the framework for small-scale exports, many micro-businesses may increasingly focus solely on domestic markets.

What could help narrow the gap

Reducing barriers for small exporters would likely require new approaches to low-volume international trade, such as:

• Simplified customs processes for low-value shipments
• Mutual recognition agreements to cut compliance requirements
• Trade finance tools designed for small transactions
• Shared logistics platforms that allow micro-businesses to pool shipments

Some of these solutions depend on policy changes; others could come from private sector innovation. The underlying issue remains the same: current export systems favour scale, and small firms face higher proportional costs.

For policymakers and business support organisations, the key question is whether easing the path for micro-exporters could unlock meaningful economic potential from the UK’s smallest but most numerous businesses.

Joe Phelan, money.co.uk business credit cards expert, said:
“The latest data reveals a widening gap: while large firms are winning overseas orders, micro-businesses are struggling to gain traction in international markets, with the economic implications being significant.”

Key stories covered:
• Why the UK’s export growth divide is widening
• The financial pressures facing small exporters
• What could help micro-businesses compete internationally