Small firm, big win: Scots gin goes stateside as others struggle to export

It sounds like a classic export success story—a small Scottish island distillery breaking into hundreds of US stores. But behind the headlines lies a tougher truth. While one microbusiness celebrates a major breakthrough, thousands of small UK firms are finding it harder than ever to sell abroad. Red tape, rising costs and post-Brexit barriers are shutting many out of global markets—raising a pressing question: is this a rare success, or proof of what more could be achieved if the system actually worked?

What’s made on a small Scottish Island and will soon appear on shelves in 300 stores in the United States? Whisky might spring to mind but in this case it’s gin.

Photo by Willy the Wizard on Unsplash

A small Outer Hebrides distiller has struck its biggest-ever export deal. The agreement will give the Isle of Barra Distillery a foothold in 28 US states including in cities such as Boston and Miami. It has taken a year of hard work for the micro business to get this signed and sealed in partnership with the Total Wine & More chain.

The Isle of Barra Distillery’s success shows that small and micro manufacturers can still break into global markets despite the hoops they have to jump through. The Government should be applauding this win. The Department for Business and Trade often cites the need more small and micro businesses to export if we want the UK economy to grow.

Exporting has always been a powerful growth engine for UK small and micro businesses. But the landscape has shifted dramatically since Brexit. The latest data shows a stubborn decline in small‑firm exporting, and huge untapped potential. The UK doesn’t publish a single figure for the number of exporting small businesses but according to the British Chambers of Commerce (BCC) figures for the end of 2025, only 21% of UK exporters reported increased export orders, down from 31% in 2018. The Office for National Statistics figures show that in January 2026, UK goods exports rose 6.7%, with increases to both EU and non‑EU countries, but that growth was down to larger firms while small and micro exporters are under‑represented.

Micro‑exporters with fewer than 10 employees are struggling the most. 17% saw increased export orders at the end of 2025; 30% saw a fall, and 53% saw no change. Small firms that do export are split between those that export into EU markets and those that export into places like the US, Middle East and sub-Saharan Africa.

Before Brexit nearly a third of firms were reporting increased export orders and EU trade friction was minimal. In contrast in 2025-26 only a fifth of firms report increased export orders and exporting hasn’t recovered to pre-Brexit levels with micro‑exporters hit hardest. More than 14,000 small businesses have stopped exporting to the EU entirely due to new paperwork and regulatory barriers. The LSE found that small firms bore the brunt of Brexit‑related trade losses, with a £27 billion reduction in EU trade in the first two years.

Despite all the challenges, the potential is significant and global demand for UK goods and services remains strong; UK exports to non‑EU markets are rising; and the UK has strong reputations in food & drink, creative industries, tech, manufacturing, and professional services.

The BCC says that recent government progress on trade agreements could unlock new opportunities if implemented effectively.

Only around 1 in 5 small firms export today. If the UK matched the small business export intensity of Germany or the Netherlands, tens of thousands more firms could be selling internationally.

Research by the BCC and LSE, and small business feedback, show the main barriers are paperwork and customs friction, which disproportionately affect microbusinesses with no dedicated compliance staff; higher costs that small firms cannot absorb as easily as large exporters; lack of time and expertise; and uncertainty about regulations. It’s also important for would be exporters to have long‑term relationships with overseas partners and small firms often lack those networks abroad. Exporting often means longer payment cycles, currency fluctuations and upfront investment all of which can have an impact on cashflow.

Small and micro businesses can export successfully as the Isle of Barra Distillery experience shows, but the landscape is tough. If the UK can crack this nut and unlock small business exporting, it could transform productivity, growth, regional economies and business resilience

Barriers for small and micro businesses:

Paperwork and Customs friction

• Rules of origin

• VAT registration

• Customs declarations

• Product certification

• Logistics delays

Higher costs

• Shipping

• Insurance

• Customs agents

• Compliance fees

Small firms cannot absorb these costs as easily as large exporters.

Lack of time and expertise

Owner‑managers often juggle everything and exporting feels overwhelming.

Uncertainty about regulations

Especially for:

• Food and drink

• Cosmetics

• Chemicals

• Electronics

• Services requiring recognition of qualifications

Difficulty finding overseas partners

Small firms often lack networks abroad.

Cashflow risk

Exporting often means:

• Longer payment cycles

• Currency fluctuations

• Upfront investment.

Digital exporting is booming

Microbusinesses can now export:

• Digital products

• Online services

• Consultancy

• Creative work

• E‑commerce goods

…without needing complex logistics.

Help is available for small and micro businesses wanting to export

but many small firms don’t know it exists.

A. UK Export Academy (Department for Business & Trade)

Free training for SMEs on:

• Export readiness

• Market selection

• Logistics

• Compliance

• E‑commerce exporting

B. UK Export Finance (UKEF)

Provides:

• Export guarantees

• Working capital support

• Insurance against non‑payment

Useful for microbusinesses worried about cashflow.

C. International trade advisers (DBT)

Offer 1‑to‑1 support for SMEs entering new markets.

D. Chambers of Commerce

Local and international chambers provide:

• Market intelligence

• Trade missions

• Export documentation services

• Networking with overseas partners

E. Growth Hubs and LEPs

Offer regional support, grants, and training.

F. Digital marketplaces

Platforms like:

• Amazon Global Selling

• Etsy

• Shopify Markets

• Upwork / Fiverr (for services) …make exporting easier for microbusinesses.

The reality

• Fewer small firms are exporting.

• Micro‑exporters face the steepest barriers.

• EU trade is still difficult.

• Non‑EU markets offer growing opportunities.

The opportunity

If the UK unlocks SME exporting, it could transform:

• Productivity

• Growth

• Regional economies

• Business resilience

Small firms need

• Simpler rules

• Lower compliance friction

• Better access to finance

• Practical, hands‑on support

• Clearer trade agreements