The UK’s Business Growth Service: A game-changer for SMEs

Why does this matter for SMEs?

Inspired by successful international models, the new digital platform will simplify the often-overwhelming process of finding practical business support. Launching your start-up? Scaling operations? Expanding into global markets? You’re in luck. This service is designed to streamline access to funding, expertise, and networking opportunities.

Goodbye to a fractured support system

According to Jonathan Reynolds, Secretary of State for Business and Trade, SMEs struggle with a complex, fragmented landscape of business support services. Consequently, many fail to secure crucial funding, mentorship, and growth opportunities. This is not due to a lack of resources; it stems from the fact these businesses are unaware of where to find the support they need.

Current challenges include:

• confusion and inefficiency. Business owners spend hours sifting through disjointed services.
• missed opportunities. Many SMEs are unaware of available grants, tax reliefs, and advisory programmes.
• inconsistent regional support. The current patchwork system means some areas benefit more than others.

A report titled ‘Approaches for designing SME support schemes – A catalogue for just transition regions’, prepared for the European Commission by researchers at Guidehouse, highlights this issue. The study found that only 16% of Welsh businesses were aware of the SMARTCymru programme, yet 76% expressed interest in applying upon learning about it. This lack of awareness may explain why the scheme only supported 60% of its target businesses.

SMARTCymru aims to help businesses develop new products and processes and successfully bring them to market. To achieve this, its mission is to co-invest in business Research, Development, and Innovation (RD&I) for sustainable growth. In doing so, it not only shares risks with businesses but also provides advice, access to risk funding, and opportunities for collaboration and knowledge transfer. As a result, businesses can benefit from financial support and valuable guidance as they pursue innovation and growth.

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The report also emphasises the need for better access to information; entrepreneurs frequently say finding details on support options is the hardest part of receiving help. Digital solutions must be inclusive, ensuring businesses can engage online and via direct advisory channels.

The Business Growth Service aims to do just this, creating a single gateway that connects businesses to relevant services and expert advice.

Tina McKenzie, Policy Chair at the Federation of Small Businesses, said:

It makes sense to bring support services together under one roof and we hope this new resource means more small firms are able to secure the support they need access to, such as starting up their own business, embarking on their export journey, or establishing themselves on the high street.

What will the Business Growth Service offer?

The Business Growth Service is a one-stop hub for SMEs seeking business support. Here’s what it will deliver: 

1. Seamless access to support networks, including Growth Hubs, Innovate UK, and the British Business Bank.
2. Customised resources based on the business stage.
3. Strategic partnerships with local and devolved governments to cover all needs.
4. Export support, helping SMEs enter international markets with confidence and financial backing.

What are the latest developments?

The UK government is making exports a priority. On 6 February, UK Export Finance (UKEF) hosted one of the largest export conferences in London. It united 1,000 business leaders to discuss strategies for breaking down financial barriers to exporting.

Key takeaways from the event:

• E-commerce is at the forefront. SMEs will be urged to use digital trade and access global markets.
• Financial support expansion. Government-backed export finance schemes will soon be easier to access.
• The Business Growth Service will play a key role. It will help non-exporting SMEs tap into global markets more easily.

In the 2023-24 financial year, UKEF’s backing contributed £3.3 billion to the UK economy and supported up to 41,000 jobs nationwide. UKEF facilitated export deals across 45 territories, opening new international markets for UK businesses.

Most businesses seeking UKEF support are SMEs, proving the increasing demand for export finance solutions. Gareth Thomas, Minister for Exports, emphasised this, stating:

Supporting small firms and supercharging exports are at the very core of that growth mission, because we know that when more SMEs trade around the world, it boosts the whole economy.

SME voices in trade policy

Grace Thompson, the UK public affairs lead at the Chartered Institute of Export & International Trade, welcomed the government’s commitment to supporting small businesses. She said the E-Commerce Trade Commission, convened in June 2023, advises the Department for Business and Trade on increasing SME exports through online channels. The Commission will launch a dedicated resource for e-commerce exporters in the summer of 2025.

The Chartered Institute continues to advocate for SMEs, giving them a platform to shape the upcoming Trade Strategy and Small Business Strategy. SME owners are encouraged to share their experiences and perspectives by contacting [email protected].

The timing couldn’t be better for businesses ready to go global. Why not make your voice heard and take advantage of these opportunities?

What can SMEs do now?

We don’t have all the details about the Business Growth Service yet. However, SMEs can still proactively prepare for its launch by taking the following actions:

• Staying informed: First, sign up for updates on the Business Growth Service to receive the latest information as soon as it becomes available.
• Exploring export opportunities: Additionally, government-backed finance and support for international trade are already available, so now is a great time to explore these options.
• Connecting with your local Growth Hub: Finally, contact your local Growth Hub to leverage existing support before the new platform goes live.

This is a pivotal moment for SMEs looking to grow. By staying up to date and taking early action, small businesses can position themselves for success in the second half of 2025 and beyond. For more expert insights, practical tips, and the latest updates on business growth, explore the 1st Formations blog. Alternatively, comment below with thoughts or questions.