Exploring the U.S. Market: Insights for British SMEs

The Allure of the U.S. Market

The United States has long been a beacon for British small and medium-sized enterprises (SMEs) looking to expand their horizons. With U.K. goods and services exports to the U.S. valued at £196 billion in 2024, the potential for growth is undeniable. Despite challenges such as tariffs and regulatory hurdles, many British businesses view the U.S. as a vital source of customers.

Understanding the nuances of this vast market is crucial for success. Investment banking group Goldman Sachs recently hosted a summit in Washington, inviting select British SMEs to explore the intricacies of trading with American companies. The insights gained from this experience can significantly shape their export strategies.

The Scale of Opportunity

While British trade with the European Union remains substantial—$358 billion in goods and services exported last year—many SMEs are drawn to the U.S. market for its unparalleled scale. Gurinder Dhillon, founder and CEO of Otto Cars, emphasizes this point. His company, which offers electric and hybrid vehicles on a rent-to-buy basis, sees the U.S. as a prime target for expansion.

“The U.S. provides an unparalleled opportunity for scale,” Dhillon notes. He acknowledges that while doing business in the U.S. can be more expensive, the potential for growth and the chance to advocate for green mobility infrastructure make it essential. The shared language and cultural ties between the U.S. and U.K. further enhance this opportunity.

Aligning with Consumer Demand

Lauren Murrell, co-founder of wellness brand By Sarah, highlights another compelling reason for British SMEs to consider the U.S. market: alignment with consumer needs. The wellness sector in the U.S. is rapidly expanding, driven by a demand for sustainable and effective solutions.

“Our brand, founded in cancer recovery and certified as a B Corp, is well-positioned to capitalize on this market opportunity,” she explains. This alignment between product offerings and consumer expectations can be a game-changer for British businesses venturing into the U.S.

Navigating Cultural Nuances

Despite sharing a language, cultural differences between Americans and Britons can lead to misunderstandings. Tom Warren, CEO of The LOCK Group, emphasizes the importance of direct communication in the U.S. market.

“In the U.K., we tend to underplay our achievements, but in the U.S., clients expect you to own your enthusiasm and capability,” he explains. This cultural divide can be a double-edged sword; while it may pose challenges, it also presents opportunities for British SMEs to adapt and thrive.

The Importance of Flexibility

Murrell points out that there is substantial support available for British businesses looking to establish themselves in the U.S. From “soft landing” programs in states like Delaware and Virginia to immigration guidance and access to grants, a robust ecosystem exists to facilitate international expansion.

“Being flexible about geography is crucial,” she advises. Instead of defaulting to major hubs like New York or California, exploring incentives offered by other states can open new avenues for growth.

Two-Way Learning

The relationship between U.K. SMEs and U.S. partners is not one-sided. While British businesses may feel the need to adapt to fit into the U.S. market, they also bring valuable qualities and insights. Warren suggests that U.S. businesses can benefit from understanding the U.K. as a gateway market, particularly in navigating complex, multi-market campaigns.

Murrell adds that U.K. companies emphasize regulation, product safety, and long-term trust. This focus can complement the fast-paced, ambitious nature of U.S. businesses, creating resilient partnerships that leverage the strengths of both sides.

Embracing Global Trade

In a world increasingly marked by economic nationalism, the potential for British SMEs to export remains strong. By learning about the U.S. market and its intricacies, businesses can avoid common pitfalls and enhance their chances of success. The journey may be challenging, but the rewards of international trade are well worth the effort.