Brexit marked a turning point for UK trade, introducing non-tariff barriers (NTBs) such as sanitary and phytosanitary (SPS) checks, customs declarations, and Rules of Origin requirements. For large supermarkets, these changes were challenging but manageable. For small and medium-sized enterprises (SMEs), however, the impact has been profound - higher costs, longer lead times, and complex compliance requirements have become the new normal.
This blog explores how business schools can play a pivotal role in helping SMEs adapt to this reality, drawing on insights from recent research into post-Brexit supply chain resilience and diversification strategies.
The post-Brexit challenge for SMEs
The UK’s Border Target Operating Model (BTOM), implemented in stages since 2024, introduced risk-based SPS controls and safety declarations. While these measures aim to protect biosecurity, they have added layers of complexity to cross-border trade. SMEs, often operating with limited resources, face disproportionate challenges compared to large retailers that can invest in customs automation and compliance teams.
Key pain points for SMEs include:
Administrative burden: Health certificates, pre-notifications, and inspection bookings require expertise and time.
Cost pressures: Compliance costs and delays translate into higher prices for consumers and squeezed margins for SMEs.
Supply chain disruptions: Lead time variability and inspection bottlenecks increase the risk of stockouts and waste, particularly for chilled and composite products.
Opportunities beyond Europe: Commonwealth and CPTPP
The UK’s trade agreements with Commonwealth partners (such as the UK–Australia Free Trade Agreement) and accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) offer new sourcing options. These deals provide tariff reductions, origin cumulation, and digital trade provisions that can benefit SMEs - especially for ambient, shelf-stable products. However, these partnerships are not a panacea. Longer shipping routes increase emissions and lead times, making them less suitable for perishable goods. SMEs need strategic guidance to leverage these agreements effectively while balancing sustainability goals.
Why business schools matter
Business schools are uniquely positioned to support SMEs in navigating this complex environment. Their role extends beyond academic theory—they can act as catalysts for practical solutions and knowledge transfer. Here’s how:
1. Executive education and training
SMEs need accessible, practical training on customs compliance, SPS requirements, and digital trade tools. Business schools can design short courses and workshops that demystify these processes, helping SMEs reduce errors and avoid costly delays.
2. Research and policy engagement
Through applied research, business schools can influence policy by highlighting the real-world challenges SMEs face. For example, advocating for simplified trusted trader schemes or pooled brokerage services can make compliance more affordable for smaller firms.
3. Digital transformation support
Digital trade provisions under CPTPP and other agreements create opportunities for SMEs to streamline documentation and reduce friction. Business schools can lead initiatives that teach SMEs how to adopt electronic data interchange (EDI) systems and integrate with platforms like the UK’s Single Trade Window.
4. Sustainability and green logistics
Diversification often means longer routes and higher emissions. Business schools can collaborate with industry to develop green logistics solutions—such as low-carbon shipping corridors and cold-chain efficiency improvements—aligning resilience strategies with net-zero commitments.
Practical steps for SMEs
To thrive in this new landscape, SMEs should consider:
Portfolio diversification: Maintain EU sourcing for chilled and composite products while exploring Commonwealth and CPTPP partners for ambient goods.
Compliance readiness: Invest in training and digital tools to manage SPS documentation and customs declarations efficiently.
Collaborative models: Join industry consortia or business school-led initiatives for shared brokerage and logistics services.
Sustainability integration: Factor emissions into sourcing decisions and seek support for green transport solutions.
The role of business schools in driving change
Business schools can amplify their impact by embedding these themes into curricula, executive education, and research agendas. For example:
Curriculum innovation: Include modules on trade compliance, supply chain resilience, and sustainability in MSc, MBA and executive programs.
Knowledge exchange platforms: Host forums where SMEs, policymakers, and academics share best practices and co-create solutions.
Case studies and toolkits: Develop practical resources tailored to SME needs, such as compliance checklists and sourcing strategy templates.
Conclusion: Turning disruption into opportunity
Brexit has introduced structural challenges that will not disappear overnight. Yet, within these challenges lie opportunities for innovation and collaboration. SMEs that embrace diversification, digital transformation, and sustainability will be better positioned to thrive. Business schools, as trusted partners and knowledge hubs, can lead this transformation - helping SMEs not only survive but succeed in a complex global trade environment.