Spreading Wings: Taking Innovative SMEs Global

3 Mar 2026 03:41 PM

The UK is a leading global technology hub and the world’s fourth-largest exporter, with digital trade accounts for around half of total UK exports, growing three times faster than other sectors. Yet behind this headline success sits a stubborn gap. Fewer than 12% of UK small and medium-sized enterprises export internationally. For a country that prides itself on innovation, this is a missed opportunity. 

Our new report, Spreading Wings: Taking Innovative SMEs Global, sets out how we can close that gap and unlock the full export potential of the UK’s tech SMEs. 

Why SME exports matter 

SMEs account for 60% of UK employment and 52% of business turnover. They are often the source of cutting-edge innovation across AI, quantum, cyber security, fintech, telecoms, defence and smart cities. However, despite strong national export performance, too few SMEs are present in international markets. At 11.6%, the proportion of UK SMEs that export lags behind many peer countries, particularly among firms with 10–249 employees. 

Exporting is strongly linked to productivity and innovation. Firms that trade internationally are more likely to develop new products and services, and to scale faster. Smaller firms are often especially agile, translating insights from overseas markets into competitive advantage at home. 

Boosting SME exports is therefore not just about trade policy. It is central to the UK’s economic strategy, long-term growth and global competitiveness. 

What is holding SMEs back? 

Drawing on interviews with senior leaders from 34 techUK SME members, our report identifies persistent and practical barriers to international expansion: 

• Complex and fragmented regulatory requirements, including data localisation, intellectual property and compliance 
• Limited access to clear, sector-specific guidance on overseas standards and rules 
• High costs associated with trade shows and missions 
• Fragmented export support across government programmes 
• Perceived lack of deep sector expertise within parts of the trade support ecosystem 
• Cross-border payment delays and limited access to flexible financial assistance 

Many firms praised targeted support from specific departments and overseas networks. However, others described the overall landscape as complex and difficult to navigate. For high-growth firms moving at pace, that friction can be the difference between success and stalled expansion. 

Click here for the full press release