“Exports will be vital for the UK’s economic recovery”

Fewer than 10% of British companies export overseas – but international trade could be key to the UK’s post-COVID economic recovery. Minister for Exports Graham Stuart, Barclays’ James Binns and Hannah Bernard, and business founder Connie Nam share insights into why SMEs need to consider diversifying their markets – and how they bank can support them.

When it comes to recovering ground lost during the pandemic, exporting is key for businesses large and small, argues government minister Graham Stuart.

“Businesses that export are typically more productive, more profitable, more innovative and more resilient than their non-exporting peers,” he told an audience of Barclays clients at a Facebook Live event.

As Minister for Exports in the Department of International Trade (DIT), Stuart is responsible for government policy on export growth and, in his words, “providing the right practical, promotional and financial support that businesses need to realise the opportunities of global exports, no matter what stage of the exporting journey business is at”.

The minister sees it as a “missed opportunity” that fewer than 10% of British companies export overseas – denying them the opportunities for profit, increased employment and higher wages as the UK economy seeks to bounce back from COVID-19 related lockdowns.

The minister sees it as a “missed opportunity” that fewer than 10% of British companies export overseas – denying them the opportunities for profit, increased employment and higher wages as the UK economy seeks to bounce back from COVID-19 related lockdowns.

“Diversifying your markets out of domestic into international makes your business more likely to survive,” he explains.

Introducing the event, Barclays’ Head of Business Banking, Hannah Bernard, said the bank was “passionate about promoting British exports and expanding international trade post-COVID”.

She added: “We understand that these exports will be vital to support the UK’s economic recovery. Across business and corporate banking, our trade services give businesses the confidence to enter new trade partnerships and markets.”

Barclays has over 250 trade finance experts in the corporate bank helping larger businesses expand and trade internationally, and also offers small business clients access to its international trade managers. Through this dedicated support, Bernard said, the bank aims to “support clients to grow globally and take advantage of the new markets that are opening”.

Long-term growth

In terms of government guidance, Stuart pointed to the resources available on great.gov.uk to help businesses “get on the front foot and make the most of opportunities on the horizon”, with practical information on free trade agreements sector-by-sector.

He highlighted the DIT’s free Export Academy for “those newer to the world of exporting”, which offers a series of webinars and events designed to build exporting knowledge and confidence in the Midlands, North, South West, or East of England.

Stuart also cited Barclays’ Made In Britain report, which surveyed 10,000 consumers in ten global markets about the premiums they would be willing to pay for UK goods. He said the report showed how “exports will be a key driver, not just to our immediate economic recovery, but also the longer-term growth of the UK. The government couldn't agree with that insight more”.

“The results were extremely encouraging for exporters,” added James Binns, Barclays’ Head of Trade and Working Capital. “We found that 36% of consumers said they were now buying more British manufactured goods than they were five years ago, especially in India and China, with 69% and 64% of consumers buying more, respectively.”
 

With consumers willing to pay a 9.6% premium for British goods, Binns – who runs a team of trade specialists supporting 9,500 businesses – stressed the need for collaborations between organisations to support UK businesses. “We are absolutely here in partnership with the DIT to help support you in realising those opportunities.”

British premium

One of these partners is Marco Forgione, Director of the Institute of Export and International Trade, who said it is crucial to capture “entrepreneurial vigour and vim” by “creating the support structures and mechanisms to advise, guide, and encourage UK businesses to export and engage in international trade”.

Forgione is inspired by the contribution of Connie Nam, Founder of jewellery business Astrid & Miyu, who described her company’s US export ambitions, focusing on the “premium attached to British-made goods and British brands”.

For businesses like Nam’s, Binns says, “We've got a full range of products and solutions, including guarantees, documentary trade products, letters of credit and supply chain finance. We try and deploy those solutions according to the needs and business cycles of our clients. And we're there to help wherever we can.”

“Grasping international trade,” adds Stuart, “means exciting new markets and more opportunities for British business. It means better jobs and higher wages for British workers, more choice and lower prices for British consumers, and economic security and prosperity for British families.”