Playing the export game

02 April, 2015

Recognising the need for continued improvement in UK exports, the British Chambers of Commerce (BCC) is calling for export and trade growth to be at the heart of the next Government's economic strategy – with a particular focus on working with business to help more companies export their goods. A particular push would appear to be required in the direction of firms newer to the ‘export game’. A recent BCC survey of more than 4700 businesses found that new exporters (0-2 years) accounted for only 11 per cent of exporting firms, while three quarters of exporters (75 per cent) have traded internationally for more than five years. Further findings also show that once firms begin to export they rapidly expand into other markets, as almost two thirds (64 per cent) of exporters trade with six or more countries.

The BCC has proposed a number of measures to assist first-time exporters, and to help existing exporters target new international markets: the first of these is to continue to develop a world-class, global business-to-business network of British Chambers and business groups – linking British firms with customers and opportunities for growth in the fastest-growing overseas markets. Secondly, continue work to bring UK Export Finance up to par with the world’s best export finance agencies – ensuring UK businesses can access finance needed to seal deals in markets around the world. Thirdly, the BCC calls for a reform of the UK’s passport and visa system – to allow overseas British business people and their foreign counterparts to conduct trade activity with ease, boosting Britain’s export performance. Fourthly, the BCC recommends that foreign language learning is made compulsory from age 7 to 16 – supporting more young people to ‘think global’, and acquire the knowledge and skills that are highly valued by Britain’s exporters.

John Longworth, director general of the British Chambers of Commerce, said recently: “Exporting is like a ‘eureka’ moment for many companies – once they’ve done it for the first time, new business opportunities, ideas and profit follow.” However, he added that studies by the BCC suggest it is the usual export heroes who form the majority of our exporters, and who make the biggest contribution to Britain's trade performance. “This need not be the case,” Longworth continued. “Business and Government can and must work together to help more companies enter the export game, and ensure that the UK has a steady flow of firms keen to move beyond the domestic market for the first time.” The key, believes Longworth, is to make it easier for companies to consider trading internationally, and make it a bigger part of the UK’s business culture. “That's why building a strong global British business-to-business network is so important, since it helps a company from Bradford, Bristol or Belfast land on its feet in Bogota, Bangkok or Beijing,” added Longworth.

Becoming an active exporter can bring with it a host of benefits to your business. The export game is not just about increasing sales and increasing market share; a company can learn from the experience in order to further develop and enhance its goods and services, learn about new technologies and even improve the way it markets and promotes itself. Risk diversification can be another advantage. If one territory suffers a market decline then the company has a host of others to keep the wheels of commerce turning. And these advantages are only the tip of the iceberg. Let’s hope that business and Government can work together in an effective way that trounces the UK’s trade deficit, while also encouraging future growth.