Only 21% of UK SMEs Report Export Growth in Q1 2025: BCC Survey

A recent survey conducted by the British Chambers of Commerce (BCC) reveals that export growth among small and medium-sized enterprises (SMEs) in the UK remains weak in the first quarter of 2025. According to the data, only 21 per cent of SMEs reported an increase in overseas sales, while 27 per cent experienced a decline, and 53 per cent noted no change. This trend highlights the ongoing challenges UK SMEs face in regaining export momentum, particularly in the context of global economic uncertainty and upcoming US tariffs.

The situation is even more concerning when looking at advance export orders. Just 20 per cent of SMEs reported an increase in future orders, while 28 per cent saw a decline and 52 per cent reported no movement. These figures suggest a lack of optimism and a continued struggle for stability in the export sector. Comparatively, in the second quarter of 2018, only 14 per cent of SME exporters reported a decline in overseas sales. The current rate, standing at 26 per cent in Q1 2025, shows that more businesses are now seeing reduced export performance than before the COVID-19 pandemic and Brexit.

On a more positive note, domestic sales appear to be more stable. About 28 per cent of SMEs reported an increase in domestic sales during the same period, compared to only 21 per cent who saw growth in exports. This suggests that while international trade is under strain, UK-based demand has remained relatively resilient for many small businesses.

Breaking down the figures by sector, manufacturing SMEs are more likely to report growth in overseas sales, with 24 per cent indicating an increase. In contrast, only 19 per cent of SMEs in the services sector reported export growth. However, the services sector demonstrated greater stability overall—57 per cent of service exporters noted no change in export activity, while only 45 per cent of manufacturers said the same. Additionally, 31 per cent of manufacturers experienced a decline in exports, compared to 24 per cent in the services sector. When it comes to advance export orders, 22 per cent of SME manufacturers and 19 per cent of service exporters reported increases, reflecting little to no improvement in future outlook.

William Bain, Head of Trade Policy at the BCC, commented on the findings, stating that the data paints a troubling picture for exporters, particularly ahead of the anticipated imposition of US tariffs. He acknowledged that some manufacturers may have seen a temporary spike in exports as US buyers sought to stock up before the new tariffs take effect. Bain emphasized that while the UK government’s strategy of negotiation over retaliation is appropriate, more must be done to support SMEs. He called for increased access to export finance, advisory services, and training programs to help businesses compete globally.