Mid-sized businesses (MSBs) are the UK’s overlooked success, responsible for impressive growth and employment across the country. Today, I am hosting a roundtable on behalf of UK Export Finance (UKEF) in partnership with the Confederation of British Industry (CBI) and UKTI focusing on how government can support this critical sector of the economy.
According to figures from the CBI, while MSBs represent just 2% of UK companies, they employ one in six people, were responsible for over a third of jobs created between 2010-2013, and generate nearly a quarter of private sector revenue. With revenue growth rates consistently above those of the FTSE 100, these are the unsung heroes of our economy.
Finding customers outside the UK will be the key to success for many mid-sized firms as they look to expand their sales by taking advantage of a global market place. These companies combine an entrepreneurial and innovative approach with a tried-and-tested business model, making them ideally suited to exporting. However, in order to prepare themselves to take this step many MSBs may need guidance and support.
This is where UKTI and UKEF come in. Working closely with the rest of government in the Exporting is GREAT campaign, our two departments are on the front line, guiding companies through their export journey and signposting them to the right sources of support.
As the UK’s export credit agency, UKEF’s mission is to ensure that no viable export fails for want of finance or insurance from the private sector. Making sure the right finance is in place is a critical piece of the jigsaw for any company looking to sell overseas. We are here to provide, when needed, support in the form of specialist export finance and insurance and guidance for exporters.
In recent years, UKEF has greatly enhanced its provision for SMEs and MSBs. Our re-introduction of short-term trade finance products has enabled us to support exporters’ working capital as well as to insure them against the risk of non-payment.
But we won’t stop there. Our ambition is for UKEF to provide support that can help even more businesses. For example, we are working closely with partner banks and trade associations such as the CBI and British Exporters’ Association (BExA) to develop more flexible products that continually adapt to export finance and insurance needs.
And we are doing more with banks to simplify the way that support for export-related working capital and contract bond support is provided. We want to develop a simpler, quicker process for the vast majority of trade finance transactions that require support from UKEF.
We also want to get better at working with UK prime contractors to help them to win contracts, not just to fulfil contracts that have already been won. We can be there earlier in the process, helping to make the finance package as competitive as possible. In particular, high value contracts are not just wins for the prime contractor, but bring enormous benefits for the UK supply chain. We estimate that for every company UKEF supports directly, an average of about 30 smaller firms benefit within export supply chains.
Mid-sized businesses are drivers of the UK’s economic growth; working together, UKTI and UKEF can ensure that these companies make the most of the opportunities out there.
You can find global export opportunities on the Exporting is GREAT website. Visit the site for export leads, practical support and inspiration for UK companies who want to grow their business through export