March 21, 2025 Board of Trade to boost SME exports
There’s nothing new about the idea of a Board of Trade which looks to boost UK interests overseas. Originally established in the 17th century “to investigate the causes of various economic and supply problems, the decline in trade and consequent financial difficulties,” the Board of Trade has gone through multiple iterations over the centuries.
The latest Board of Trade revamp in March 2025 has resulted in a new crop of CEOs and business leaders being appointed to the board; all of whom have been chosen for their expertise and knowledge across a wide range of business sectors. These include the founder of Small Business Britain, Michelle Ovens, and business entrepreneur and advisor Mike Soutar. Together with their fellow board members they are tasked with ensuring that SMEs have all the tools which they need to boost export potential.
It is intended that the work of the board will feed into the Government’s Small Business Strategy which is due to be launched later in 2025. Commenting on the launch Business and Trade Secretary Jonathan Reynolds said: “Small businesses are the driving force of our economy, both at a local and national level, which is why, as part of our Plan for Change we’re determined to ensure that all SMEs have the tools at their disposal to thrive. The new Board of Trade will be another tool in our arsenal to get more businesses trading around the world.”
In tandem with the launch of the new board, the Department for Business and Trade is calling for evidence on the availability of debt finance for SMEs. Debt finance can help businesses to grow their domestic and overseas trade. UK SME demand for finance is far lower than that seen in some other areas. For example, just 1.5% of UK SMEs applied for a bank loan in the third quarter of 2024, compared with 20% of SMEs in the Euro area.
The evidence request seeks to understand both the SME appetite for growth through finance and what additional measures could be put in place to meet debt finance needs. Questions range from why businesses might seek financing and their experience of applying for finance, to the factors for consideration in looking towards one provider over another, as well as why non-bank lenders may have been chosen. There is also a section on how the needs of under-served entrepreneurs are met. The consultation which can be found here calls for evidence from SMEs, lenders, and industry experts. It closes on 8 May 2025.
