UK Export Finance (UKEF) aims to reshape the landscape of British exports by further supporting SMEs.
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UK Export Finance (UKEF) recently unveiled an ambitious business plan for the 2024-2029 period, highlighting its commitment to actively support small and medium-sized enterprises (SMEs) in the UK in their overseas expansion. With a bold vision, the agency has pledged to support 1,000 SMEs per year by the end of the decade, representing a significant increase from current levels.
This strategic plan also includes significant financial commitments, including facilitating £12.5 billion in export contracts and providing £10 billion in financing for clean growth by 2029. These measures reflect UKEF’s commitment to encouraging businesses to adopt more sustainable and environmentally friendly business practices.
Increased support for SMEs is particularly important, as these businesses often struggle to obtain commercial financing and access international markets compared to their larger counterparts. Despite a already high number of SMEs benefiting from UKEF support, the agency acknowledges that there is still a long way to go to achieve its ambitious goal of supporting 1,000 SMEs each year.
One of the main barriers to overcome is the limited appetite of private lenders for commercial risk, making it crucial to develop partnerships with financial institutions to offer simpler and more flexible solutions to SMEs across the UK. UKEF also plans to integrate non-bank financial institutions specializing in SME financing to strengthen its support for SMEs.
Additionally, UKEF plans to modernize its services by introducing digital and automated solutions, with faster response times, to facilitate SME access to its services. This initiative aims to simplify and expedite the financing application process, thus providing more effective support to British businesses in their international expansion.
UKEF’s business plan also emphasizes the importance of supporting “underserved” businesses, particularly those owned by women and minorities. This approach aligns with a global trend to promote inclusivity and diversity in the business sector, recognizing the untapped potential of these businesses to contribute to the national economy.
Finally, UKEF’s commitment to clean and sustainable growth is underscored by its goal of providing £10 billion in financing for environmentally friendly projects by 2029. This direction reflects the transition to a greener economy and responds to increasing pressures from climate change activists.
In summary, UKEF’s new business plan marks an important step in reshaping the landscape of British exports, with a focus on increased support for SMEs, promoting environmental sustainability, and including marginalized businesses. These initiatives aim to enhance the competitiveness and resilience of the British economy on the international stage, paving the way for sustainable and inclusive long-term growth.
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Sources :
https://www.gtreview.com/news/europe/uk-export-finance-unveils-ambitious-new-target-for-sme-support/