Guidance

Doing business in the UK: toolkit for small businesses

Published 5 October 2023

Introduction

The UK and US are each other’s closest allies. There are huge opportunities to build on this relationship together, and ensure we are working together to address the challenges of the modern economy and supporting our small- and medium-sized enterprises (SMEs) to make the most of this relationship.

The US is an attractive market for UK SMEs and the opportunities to grow their business in the US is large. Approximately 32,000 UK SMEs exported £12 billion goods to the US in 2021, and around 36,000 SMEs imported £10.5 billion goods from the US. Currently, 84% of business exporters from the UK to the US are SMEs, employing almost 1 million people, and the US is the number one market for UK SMEs. Overall, we have more than £1.1 trillion invested in each other’s economies.

Exporting to new markets such as the US can help SMEs grow, innovate and increase their productivity and profitability. It is for these reasons and more that we aim to make the UK the best place in the world to start, scale up and grow a business. To achieve this, we provide extensive business support for SMEs and place them at the heart of our policy making. This toolkit outlines this support and how SMEs can access it to make the most of the opportunities the special relationship between the UK and US holds.

Finding SME support across the UK

The Department for Business and Trade’s (DBT) great.gov.uk website is the UK government focal point for small businesses requiring support domestically and to trade. The department recently launched the Help to Grow homepage, this one stop shop will provide you with everything you need to know to start a business, grow your business or get exporting.

As well as this central support resources exist across the UK to support SMEs and their business needs.

DBT has opened Trade and Investment Hubs in Cardiff, Edinburgh, Belfast, as well as an Economic Campus in Darlington to extend the investment, jobs, and export opportunities from our international trade work across the UK. These hubs improve access to DBT service and support levelling up across the UK. Support is also available in Scotland, Wales and Northern Ireland from each of the devolved administrations.

DBT offers export help and support with commissioning services from local experts overseas.

Across all UK nations, our community of Export Champions are sharing their experience of trading internationally, encouraging, and inspiring new and fledgling exporters to do the same. Our Champions represent a wide range of sectors and exporting markets, providing a key role in inspiring SMEs to grow through exporting and advocating DBT’s export support offer.

Finding export support that works for your business

Depending on your type of business or how often you export you may need different kings of support which can be found on the DBT great.gov website.

New exporters

The DBT website contains information on a range of issues such as researching the market, finding customers, and internationalising a business website. Furthermore, advice is available on the website for those looking to export their services abroad.

Occasional exporters

DBT understands that for some SMEs they only need to export occasionally. The DBT website includes a range of information for these SMEs such as how to protect your intellectual property, visiting trade shows and ensuring payment.

Regular exporters

There are many UK SMEs which export regularly. For example, in 2020 almost 130,000 SMEs exported from the UK to the US alone. Support exists for these regular exporters including licensing or franchising a business overseas, raising finances or making the most of the value of your intellectual property.

Access to services from DBT

DBT has a comprehensive offering for SMEs of online, in-person and hybrid resources available to help SMEs start and grow on their export journey. These include:

Export Support Service

DBT makes it easier for exporters and those considering exporting to access the information they need. The Export Support Service provides SMEs with a single point of contact to ask questions and navigate a range of complex information simply and quickly.

SMEs can ask any question for their business, including on:

• exporting to new markets
• paperwork you need to sell your goods abroad
• rules for a specific country where you want to sell services

Export Academy

The UK Export Academy is open to any business in the UK who has a product or service that can be sold internationally. It is for businesses who know that they want to reach international customers and succeed in securing international contracts, as well as those who might already be selling beyond the UK and want to expand into new markets.

The UK Export Academy is a free training programme, delivered through a hybrid of online and face-to-face learning. It is a resource which has been used by thousands of businesses who have discovered their export potential, increased their confidence, and upskilled their knowledge of overseas sales.

There have been over 13,500 sign ups to UK Export Academy, as of January 2023. It has run over 1,000 events, providing training to over 8,500 unique businesses.

International Markets

The International Market service provides specialist overseas export support for SMEs across all 9 HM Trade Commissioner (HMTC) regions based in over 180 global markets.

The service offers;

• tailored consultation providing expert advice on the HMTC region and the specific markets
• a wide range of off-the-shelf market intelligence for clients, covering a number of practical themes and sectors
• access to the Overseas Referral Network, which is a managed list of third-party suppliers who can provide more specialist support such as tax advice or human resources (HR) expertise

Find-a-Buyer

SMEs can establish a ‘Find-a-Buyer’ trade profile this service enables SMEs to promote their products and services to international buyers in one convenient location.

Export Opportunities

The Export Opportunities service allows for international buyers to advertise ongoing opportunities. SMEs can then apply for these providing more opportunities to sell their product or service.

Events

DBT offers a number of events which SMEs can attend to help grow their business these include Trade Missions, expos, conferences, and webinars. SMEs can search for events relevant to their business or market and use these to promote their business.

E-exporting

SMEs can utilise the ‘selling online overseas’ digital tool to find the best marketplaces to highlight their products online. Furthermore, this tool allows SMEs to take advantage of exceptional deals negotiated by the government for UK SMEs.

DBT’s top tips for exporting to the US

When thinking about exporting to the USA a great place to start for SMEs is the DBT exporting guide for the USA. This webpage can help SMEs get started on their exporting journey by providing guidance on how to do business in the USA.

Tip 1

When exporting to the USA the number one tip is deciding where to sell. The USA is a large federal system therefore, requirements and implications will change depending on which state you do business in. Identifying the consumption and import figure for your product will help show which market within the USA is best for your business.

Tip 2

Your export plan is crucial in exporting to the USA. Due to the high potential and competitive market, it is important to ensure your SME has the people, capacity and knowledge to enter the market. Your export plan will help you identify the steps you need to take before entering the market.

Tip 3

Your options for choosing a route to market will vary depending on your sector. SMEs can either sell directly, use a distributor or agent, or create a joint venture. It is important you ensure clarity of responsibility for areas like delivery and payment. Always ensure you protect your intellectual property.

Tip 4

Understanding your SMEs obligations is crucial, at a federal, state, and local level. Ensure you are registered, insured, and paid. Research what is required of you both legally and financially to avoid potential litigation. DBT also provides information and resources for SMEs which can make regulations, permits, licences, customs, and tax requirements much simpler.

Export finance

SMEs thinking about exporting or those looking to grow their export offering need to consider if they require export finance.

UK Export Finance (UKEF) is the UK’s export credit agency which can offer export finance and insurance to UK SMEs to complement the private sector. UKEF can support exports for any size of company and across all sectors.

UKEF’s support can fall under 3 categories:

1. Winning export contracts – by offering attractive financing terms to overseas buyers UKEF can help SMEs win export contracts.
2. Fulfilling export contracts – by supporting working capital loans and contract bonds UKEF can help SMEs fulfil their export contracts.
3. Getting paid – by Insuring SMEs against buyer default, even in markets not covered by traditional insurers, UKEF can help make sure SMEs get paid for export contracts.

UKEF can also provide SMEs banks with a guarantee for up to 80% of a working capital loan or contract bond value when issued in support of an export contract. SMEs can access this UKEF support directly from many major banks without needing to apply separately.

UKEF has Export Finance Managers dedicated to regions across the UK. These experts can offer free support and guidance to SMEs looking to export.

Export support from across government

While DBT is the central resource in the UK government for SMEs looking for export support other government resources exist to help SMEs.

HM Revenue and Customs (HMRC)

HMRC can provide SMEs with expert advice and assistance on matter relating to importing and exporting of goods, including classifications, duty relief, controls and procedures, Value Added Tax (VAT), export licences, export taxes and exchange rates.

Intellectual Property Office (IPO)

The IPO is the government body responsible for intellectual property rights including patents, designs, trademarks, and copyright. It can help SMEs protect and benefit from their ideas and innovations both in the UK and abroad.

Private sector export support

The UK government provides a comprehensive offering to UK SMEs when it comes to export assistance. Further to this, support from the private and third sectors is also available to SMEs. This support can come from businesses such as banks, accountants or lawyers who can provide SMEs with financial, taxation and legal services as they grow.

Support and advice are also available from business representative organisations who exist across the UK including:

• Institute of Directors (IoD)
• British American Business (BAB)
• Federation of Small Businesses (FSB)
• the British Chambers of Commerce (BCC)
• the Institute of Export and International Trade (IOEIT)
• the Confederation of British Industry (CBI)

Freight forwarding

A particular barrier SMEs often face in trade is the excessive cost and complicated coordination of transporting goods from one place to another.

A common resource used to tackle this are freight forwarders. They provide knowledge and expertise to prepare and process the correct documentation relevant to international shipments. Commercial invoices, shipper’s export declaration and a bill of lading, which is used between 2 modes of transport and is used as evidence of a contract specifying the carriage of goods, are just some of the documents handled by freight forwarders on behalf of SMEs.

Other support available for SMEs

The UK government is committed to creating an economy that boosts productivity and helps businesses grow and reach their potential. DBT is dedicated to making the UK the best place to start and grow a business. Central to this goal is ensuring that SMEs have the support they need whether they are exporting or not.

Help to Grow: Management

In order to do so, the UK government has a wide range of resources to help SMEs grow. This includes the Help to Grow: Management course which helps SMEs boost their performance and resilience. The course is designed and delivered by entrepreneurs and industry experts at world-class business schools. The leadership course provides time away from the challenges of running a business to invest in leadership and provides knowledge and skills to take your SME to the next level.

Finding the right support for your SME

SMEs across the UK can access support and advice that they need from local experts when required

Across England there are 37 Local Growth Hubs which help businesses understand the best place to get support for them. This support includes the Business Support Helpline which provides immediate support and advice to SMEs.

In Scotland SMEs can access support and advice through Business Gateway which provides support on starting a business, building resiliency, and growing your SME.

In Wales, SMEs can access support through Business Wales who offer training for business owners looking for grow, Welsh language translation and advice and events for SMEs.

Northern Ireland Business Info provides advice and support to SMEs in Northern Ireland on their website. The service is provided by Invest Northern Ireland who also have a helpline for SMEs needing support.

Research and development

The UK is a world leader in research and innovation. There is currently a range of support to help SMEs develop, research, and commercialise their ideas provided by UK Research and Innovation (UKRI).

UKRI drives productivity and growth by supporting SMEs to realise the potential of innovative technologies, develop idea and make them a commercial success. They do so by connecting SMEs with the right partners and expertise that can help them bring their ideas to market.

The UKRI Knowledge Transfer Network creates connections, dialogue, and partnerships between people with different expertise, specialisms, and backgrounds to help SMEs innovate and grow

Through the Catapult Network SMEs can access cutting edge research and development equipment and facilities. This network has 9 leading technology and innovation centres spanning over 50 locations across the UK.

Access to finance

Outside of financial support to help SMEs export there is a wide range of financial support to help SMEs launch, grow, or expand their business.

Innovate UK provides funding to help businesses to develop new products, processes and services that will meet or define the markets of the future. Innovate UK runs an open programme that provides financial support to any innovative company based in the UK working in any high-value innovative technology, business model or process in any sector of the economy. It also offers innovation loans to support SMEs in the gap between grants and market finance and investment.

The British Business Bank works with over 200 private sector partners to provide a range of debt, equity, and guarantee programmes. Comprehensive information on business finance options is provided through the Bank’s finance guide, which also includes resources for managing cost increases and cashflow difficulties.

Backing women-led businesses

The UK government commissioned Alison Rose, CEO of NatWest Group, to lead an independent review of female entrepreneurship which was published in March 2019. The Rose Review led to several initiatives to address the disparities faced by women entrepreneurs, especially in accessing finance. These include the British Business Bank’s Investing in Women Code, a commitment by banks, Angel investors and venture capital funds to support female entrepreneurs’ access to tools, resources, and finance from the financial services sector.

Since its founding, the code has continued to grow year on year and currently has over 200 signatories committed to supporting women-led businesses.

The Invest in Women Hub is a new guide for women-led businesses. Launched in June 2023, the Hub offers women entrepreneurs the tools and framework you need to make your business a success – whether you’re thinking about starting out or exploring how to find the all-important finance you need to take the next step. The Hub includes guides to finance providers, business accelerators and incubators for each stage of your business journey.

GOV.UK licence finder

To help individuals and businesses wanting to provide a service in the UK find what authorisations they need (licences, permits, registrations etc), UK government provides the Licence Finder. This online tool enables users to search for and find the authorisations they need to operate a service in the UK. (As of mid-2023) The Licence Finder has recently gone through a refresh which added additional information and authorisations to the tool.

Mutual recognition agreements (MRAs)

In order to reduce non-tariff barriers to trade between the UK and US, we have signed 2 MRAs in relation to conformity assessment.

Conformity Assessment is a set of processes that some products go through before they can be sold in a particular market. For products requiring conformity assessment, manufacturers or distributors are often required to use independent third-party Conformity Assessment (3PCA) Bodies (CABs) to certify that the product meets the relevant rules in the target market. These CABs have been ‘accredited’ as competent and trustworthy to do this by ‘accrediting bodies’ (ABs) operating under delegated authority from government. Often manufacturers are limited to only using CABs which are accredited in their own country.

However, the MRAs between the UK and US commit both countries to accept Conformity Assessment procedures performed against its own regulations by a designated CAB in the partner country, and vice versa, in agreed sectors. This allows manufacturers to work with CABs located conveniently, rather than having to send their products to CABs in the partner country, reducing the burden of certification and making exports more competitive.

One MRA covers electromagnetic compatibility, telecommunication equipment and good manufacturing practice of pharmaceuticals. The other MRA covers marine equipment.