Many small UK businesses are struggling to take advantage of the new trade deals, with many reporting flat or falling exports.
With 84 per cent of the smallest businesses receiving too few export orders, fears are growing about how to ensure your company benefits from these trade agreements.
The divide is now becoming increasingly apparent as larger firms are experiencing the opposite with export growth.
With smaller businesses lacking support in export orders and international trades, we can help you understand how to use the new trade deals to your advantage.
How have small businesses been affected by recent trade deals?
According to a new survey by the British Chambers of Commerce (BCC), 4,638 firms found that businesses with 10 or fewer employees received too few export orders in the third quarter of the year.
However, larger companies with 250 or more employees are less affected by the trade deals, with 42 per cent seeing growth in their export orders.
With the gap between small and large exporters widening, the BCC has called on the Government to support small businesses and modernise trade systems.
William Bain, head of trade policy at the BCC, commented that the growing disparity was “deeply concerning” and that the new trade deals were only as effective as a company’s ability to apply them.
With fears of small businesses being excluded from further trade deals, we can help you with trade education and ensure you are aware of the changing effects.
Has the Government helped support small businesses so far?
Recent increases in lending limits of UK Export Finance from £60 billion to £80 billion have allowed for smaller exporters to access affordable funding.
However, the BCC urges for more support ahead of the Autumn Budget on 26 November.
Despite the Government’s pledge to boost trade, reports in the BCC survey found that businesses were still struggling with post-Brexit bureaucratic red tape, Trump’s tariffs and the US ending tariff exemptions for goods valued at $800 or less.
Dealing with new overseas trade deals VAT as a small business involves understanding specific rules for imports, exports and services and analysing the impact of tariffs.
We can help you stay informed and assess how these trade deals will impact your business.
Together, we can advise you on your business strategy to manage potential changes in costs and market competition.
How can small businesses take advantage of trade deals?
With many structural barriers holding back growth in small businesses, the BCC are calling for a ‘Trade Accelerator’.
This would be targeted to help businesses overcome the complexities of international trade deals and finance on new deals.
We can help you assess your economic growth and leverage available Government support and technology that will benefit you.
When you speak with us, we can support you with your financial planning and how to remain resilient as a business in these challenging times.
For expert financial advice and support, contact our team today.