"Only 10 per cent of UK businesses sell to non-UK customers"

Labour’s entrée into Westminster has certainly been nothing short of uneventful, with nationwide riots and protests swallowing much of the attention of the British media, along with leading cabinet ministers.

However, the recent disorder is simply a drop in the water in terms of the rather lofty challenges they face in the coming months, with a long list of urgent issues in dire need of resolving, and resolving fast, to ensure it doesn’t flag behind on its promises.

In its manifesto, Keir Starmer pledged that his government that would be “pro-business”, with wealth creation being at the very heart of its short list of policies.

For global logistics providers Aramex UK, which boast a strong track record in helping SMEs propel their offerings into new and lucrative markets through leveraging its end-to-end logistics and transportation services, including small to medium sized businesses as one of the key investment areas within Labour’s manifesto would not only instil confidence into a fresh-off-the-block cabinet, but drive long-lasting economic growth that the country is clearly crying out for.

With the vast majority of businesses within the UK being SMEs, employing 16.7 million people and contributing £2.4 trillion per year to the economy, Aramex Regional CEO – UK and Europe Umar Butt is a firm believer that SMEs should be seen as the one of key engines of growth, and that giving those that seek to expand their presence internationally a ‘leg up’ is vital to giving the UK’s fledgling economy the kickstart it so desperately needs.

Umar said: “In many respects, SMEs are, and should be seen as, the UK’s lifeblood, and while the previous government aimed to drive export expansion, increased bureaucratic and logistical challenges have led to a pretty alarming contraction in goods exports out of the UK.

“In fact, since 2019 we actually top the charts in the decline of goods exports and imports compared to any other G7 country. On the face of it, a worrying concept indeed.”

“The irony is however, that there’s actually a fairly large appetite from UK SMEs to break into new markets. Only last year HSBC reported that around 450,000 brands have ambitions to diversify into new and emerging markets. With international expansion still firmly on the agenda for UK businesses, the government really need to step up to the plate by outlining a set-in-stone strategy that will actually help inspire action. It’s no secret that exports are a key driver of economic growth within any given country, so why not actively encourage it?”

In doing so, Umar Butt has advised that businesses need to be armed with the resources and regulatory support to help realise their growth and seize opportunities that exist outside the domestic bubble in which many find themselves.

“Believe it or not we actually live in an era where breaking into new markets is as accessible as it’s probably ever been, despite the preconceptions. Are there added complications which can make it complex and frustrating? Sure. But that doesn’t equate to it being the insurmountable task some might want to believe it is. The idea of diversifying into new countries is really far scarier than the reality, as long as the right advice and support is in place of course. Unfortunately, without that support, SMEs are very much up a creek without a paddle.

“The rise in digitalisation, social media and online marketplaces have really opened Pandora's box for exporters, playing a huge role in revolutionising modern-day commerce. Opportunities which previously weren’t there, now are, yet astonishingly there’s still a huge number of businesses which either aren’t aware of these opportunities or are too apprehensive about taking the leap and grasping them with both hands.

“As mentioned previously, exports are a key driver of economic growth, yet only around 10 per cent of UK businesses sell their goods to non-UK customers. So, if the Labour government are committed to reversing this decline, and getting the UK economy back on track, then they should be turning their attention to investing time and resource into quashing the painstaking roadblocks SMEs face when it comes to expanding further afield.

To offer its 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, allowing businesses to compete by removing any unnecessary barriers – all with the aim of empowering them to expand their reach and achieve their business goals.

“There’s no question – international expansion should be in reach for all SMEs. It’s for this reason that we have actively sought ways to facilitate this for our own clients in recent years, namely by providing flexible and tailored services as well as simplifying the end-to-end logistics process.

“It’s something we see time and again within the industry where SMEs are overlooked because they aren’t deemed profitable. Ultimately, it’s all about giving them a fair opportunity in helping them reach their true potential. However, these initiatives alone will only go so far. Real change needs to be driven by 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’ve actually seen a swelling ambition among SMEs to trade internationally, which should encourage the existing government to accelerate plans to help them realise on their ambition. However, more needs to be done in Westminster this time around to provoke confidence across the SME community that expanding internationally is achievable, provided the right support is there. As a part of this, the government needs to avoid a one-size-fits all approach. Otherwise, we’re not actually any further forward and the prospect of exporting to new markets just becomes incredibly daunting task and totally out of reach, especially to those making their first steps on this journey.”