At this time of great opportunities for businesses looking to grow, and with the spotlight falling on export, we spoke to Chris Southworth, Secretary General, International Chambers of Commerce UK (ICC) about making the most of our export opportunities.
He told us that the role of the ICC is to work with governments and businesses worldwide to champion open markets and a level playing field for enterprise through the use of common rules and standards. This is critical to help make it easier for companies to trade internationally, particularly SMEs and companies operating in emerging markets.
He said, “ICC is – and has been throughout its long existence – a steadfast rallying point for those who believe, like our founders, that strengthening commercial ties among nations is not only good for business but good for global living standards and good for peace.” Chris is a great believer in the value of building a network of commercial relationships across nations and using our existing business contacts to help us in our export endeavours. British businesses are fortunate to have the benefit of being able to access a sophisticated web of business networks in every market – these are business people who have already trodden the path and know how to succeed in the respective market more than anyone else.
He said that in the run up to Brexit and indeed afterwards, the growth opportunities for SMEs in the EU will remain, and businesses should make a point of building on those existing relationships. He pointed out that there are also a host of new opportunities in the wider world, particularly with our Commonwealth cousins that are far from tapped in terms of potential.
Most companies plan to grow, and with statistics showing that a company, which exports, is 80% more likely to grow than one, which chooses to restrict itself purely to the domestic market.
Many novice exporters will look for an easily accessible market for their early ventures, and the EU with its, for the time being, common tariffs and cross border arrangements, established logistics networks and close proximity, would for many, be an obvious first step.
The opportunities many commonwealth countries offer, however, should not be disregarded. The advantages of a shared language, common legal systems and cultural similarities are hard to underestimate, and we already have well established trading links with India, Australia, Nigeria, New Zealand and Canada, to name but a few, where “Brand Britain” can command a premium being synonymous with quality. Canada especially can provide a brilliant springboard into the vast market of North America.
While all this sounds very exciting, that first step can be somewhat daunting, but as Chris explained, there is plenty of help available.
He said that support for novice and existing exporters comes from two main sources, the government and Chambers of Commerce and Trade Associations.
The UK differs from many other countries in the huge amount of direct support our government provides to companies wishing to export. The department for UK Trade and Investment (UKTI), renamed the Department for International Trade (DIT) in 2016, was set up to help businesses, export and grow into global markets, and has 130 offices throughout the UK and a presence in all the major trading markets.
Financial assistance is available for SMEs wishing to export, from government in the form of financial guarantees and trade insurance through United Kingdom Export Finance (UKEF) which has a mission to ensure that no viable UK export fails for lack of finance or insurance, yet operates at no net cost to the taxpayer.
The trade teams from DIT are specially geared up to help SMEs generate trade opportunities overseas, through their established relationships with over 100 countries. The knowledge these teams can provide is especially valuable since our relationship with the EU is of such longstanding that many of the last 3 or 4 generations of managers, having only dealt with the EU, have lost the expertise to deal with countries further afield. We need to re-educate and rebuild those knowledge sets and relationships that used to work so well sending machine parts to Chile, or engineering to Mexico.
The Chamber of Commerce and the various Trade Associations which support trade also provide a useful network of contacts and support around the world and provide a practical private sector perspective. One of the most helpful things the prospective exporter can do, as a first point of call, is to talk to others who are already trading with their target market. Fellow members at your local Chamber are a vital source of information; listening to their experiences will help avoid risky and expensive errors.
Talking to your own Trade Association will garner much sector specific information enabling you to tap into the knowledge and experiences particular to your industry. Often these contacts will be able to suggest adaptations, which will improve the marketability of your product or service for a given region.
The International Chamber of Commerce is also a useful source of practical help and publishes a wide array of best practice rule books, guides and toolkits to help companies operate internationally, most of which is freely available and all written by business experts.
Chris was keen to stress that, “Conversations with your peers are vital if you are to make a success of your export ambitions. Government advice is good but sometimes you just need to hear it warts and all from a peer. Digital support is good but has its limits. Trade is all about people and trust, particularly in emerging markets.” As final word, he directed us to a few helpful sources of information.
www.gov.uk/browse/business/exports
www.gov.uk-trade-and-investment-services-for-exporters
www.export.great.gov.uk
www.opentoexport.com
www.exportbritain.org
www.iccwbo.uk