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March 13, 2015

The “eureka moment” for first-time exporters

The “eureka moment” for first-time exportersMore UK businesses should try exporting and discover the rewards that it offers, says the British Chambers of Commerce (BCC).

A BCC survey of more than 4,700 businesses reveals that new exporters (with up to two years’ overseas trading) only account for 11% of exporting firms while 75% of exporters have traded internationally for more than five years.

And yet the research also shows that once firms begin to export they rapidly expand into other markets, as 64% of exporters trade with six or more countries.

“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,” said John Longworth, BCC director general.

“However, our studies suggest that 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. Business and government must work together to help more companies enter the export game.”

The BCC has proposed a number of government measures to help British exporters:

  • Continue to develop a world-class, global business-to-business network of British Chambers and business groups;
  • Bring UK Export Finance up to par with the world’s best export finance agencies;
  • Reform the UK’s passport and visa system to allow business people to conduct trade activity with ease;
  • Make foreign language learning compulsory from age seven to 16.

Meanwhile, trade minister Lord Livingston has announced this week that more than 3,000 medium-sized businesses (MSBs) are now receiving government support to break into new markets overseas via UKTI, up from 1,000 a year ago.

Lord Livingston said: “Exporting is not just for large firms. MSBs play a vital role in the economy – despite making up just 0.5% of all firms, they currently account for around a fifth of employment and 25% of turnover in the UK. Helping MSBs export will also benefit small UK companies: 70% of MSB suppliers come from our domestic economy.”

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