The latest analysis from the British Chambers of Commerce reveals a widening gap in export performance between small and large UK firms. Data collected from more than 4,600 businesses during August and September shows that micro-exporters—those with fewer than ten employees—are struggling to gain traction in overseas markets, while larger companies are seeing a stronger rebound.
Only 16% of the smallest exporters recorded an increase in export orders in the third quarter, compared with 42% of large firms with over 250 staff. Around 27% of micro-exporters reported a decline in orders, while over half reported no change. The pattern was similar for export sales, with just 18% of small firms reporting growth, compared with 42% among large exporters.
Overall, sentiment across all exporters remains weak, with fewer than a quarter reporting increased overseas sales in the last quarter. The data suggests that most smaller businesses are not benefiting from the same recovery momentum as their larger counterparts, reflecting challenges such as higher costs, complex trade rules, and disrupted logistics.
William Bain, Head of Trade Policy at the BCC, said:
“The growing disparity between the experience of the UK’s largest and smallest exporters is deeply concerning. It underlines our call for urgent Government action, in partnership with business, to help smaller firms reap the benefits of trade. Boosting exports is the quickest way to grow our economy, and our data should be a wake-up call for policymakers.
He continued, “Business welcomes the real progress made on trade deals with the US, EU and India in recent months – and the Trade Strategy, launched at the BCC’s Global Annual Conference in June. As these deals and strategies are implemented, new smaller exporters need greater help to fully reap the benefits. Next month’s Budget is also an opportunity for the Chancellor to take decisive action to boost exports. The BCC is looking to work directly with government on trade accelerator programmes. We’re also calling for reformed customs systems, and full consultation on a UK carbon border adjustment mechanism.”
The findings arrive ahead of the upcoming Budget, during which business groups are urging policymakers to introduce targeted measures to improve export conditions for SMEs. Many smaller manufacturers and service providers continue to face barriers that limit their ability to expand internationally. Chamber analysis shows that a 2% increase in exports could boost national output by 0.6%, underscoring the economic value of strengthening small business participation in global trade.
