How SMEs can capitalise on the UK's Industrial Strategy

The UK Industrial Strategy is a signal that economic growth is firmly on the Government’s agenda, but it’s also an opportunity for businesses, particularly SMEs, to take advantage of renewed optimism to grow and scale in the UK and across borders.

The onus will be on the UK’s 5.5 million SMEs to drive this economic transformation over the next decade to do this, they need to set themselves up for success.

Progressive businesses will look inward at how they can optimise their financial operations to create a lean setup that can scale and trade across borders. This is a moment for businesses to reassess and reset.

Payments for growth

Just as the Government is recognising the importance of modern transport and digital connectivity, forward-thinking businesses must address their own infrastructure gaps, and managing their everyday banking is a critical part of that.

Payment capabilities are increasingly driving business decisions and determining which countries can successfully expand into and which remain constrained. For example, a London-based retailer sourcing from Asia needs to navigate complex or new supply chains, while a Yorkshire-based manufacturer selling into Europe requires financial tooling that can handle varying currencies.

It’s already well known that payments platforms play a significant role in enabling business operations and growth, but this will become even more apparent, especially for SMEs, as the UK looks to open up to new markets. Platforms will help to handle multiple currencies, offer clear pricing and streamline compliance, turning international expansion from a complex, resource-intensive undertaking into a manageable extension of domestic operations.

Essential steps for UK businesses

Cross-border expansion poses a challenge to businesses of all sizes, from large, established firms to startups. There are key areas that businesses must prioritise:

• Prioritise integration and automation: As 90% of finance leaders express dissatisfaction due to the inefficiency and unreliability of their current spend management and inventory solutions, choose a payments platform that allows for integration with existing systems. The automation of these processes will help to reduce operational overhead and minimise errors that can be costly in international transactions.
• Auditing payment capabilities: Businesses should look at their existing payment infrastructure against the requirements for international expansion. It’s important to calculate the true cost of international transactions, including hidden fees and currency conversion margins.
• Multi-currency is the way forward: Leveraging payment providers that can handle multiple currencies efficiently, with transparent pricing and competitive exchange rates. This will enable businesses to quote prices in local currencies, improving customer stickiness.
• Compliance capabilities are key: Ensure that any payment systems can handle varying regulatory requirements across markets. This includes everything from tax reporting to anti-money laundering compliance, which becomes increasingly complex as businesses expand across borders.
• Remembering scalability: Carefully choose solutions that can grow with business ambitions. A payment system adequate for occasional international transactions may not be sufficient to support the volume and complexity of global expansion.

The businesses that will drive the UK’s economic growth are those that will take the initiative and address their infrastructure challenges to support growth, making strategic decisions on technology and expansion that are supported by robust financial and payments capabilities. With these steps in place, businesses can focus on their global ambitions while doing business in the UK.