Does UKTI do enough to encourage exports?
The UK trade deficit narrowed to £1.2bn in April from £3.1bn in March this year after exports increased by £700m. This improvement in the trade balance was largely down to trade with countries outside the EU. However, the longer term position continues to cause concern and places increased scrutiny on what the Government is doing to support export growth. Who is responsible and are they doing enough? If not, what are the alternatives?
UK Trade and Investment (UKTI) is the body responsible for providing support and advice to British companies which are looking to start exporting, as well as to those which already export. Whilst the quality of the services provided by UKTI is widely regarded to have improved over the past few years, probably as a result of extra resources being made available, there are still a number of shortcomings.
The House of Lords Committee on SMEs* highlighted a real problem of awareness among UK businesses. Many of them, particularly smaller businesses are just not aware of what UKTI can provide in terms of support for branching out into exports. Export Week events across the country have helped to raise their profile to an extent, but UKTI needs to become even more effective in getting their message across to SMEs.
It has been suggested that an increase in the accountability of UKTI managers for the body’s performance could help. The London Chamber of Commerce and Industry has suggested that holding them responsible for the number of businesses UKTI assists, in addition to quality of service and feedback levels might drive a more effective service for existing and potential exporters.
Certainly more needs to be done to support small and medium sized firms in taking their trade international, including the provision of finance for export. Not enough SMEs currently receive help from UK Export Finance, nor are they aware if alternative finance options.
UKTI may have improved, but the consensus seems to be that it still needs to step up and do more to give British businesses the support they need to boost exports.
What other option do SMEs have when it comes to export?
Most SMEs we meet just don’t have the capacity, in terms of time and resource to access the type of support UKTI offers anyway, let alone take up training and opportunities which may be on offer. But that does not mean the door to exports is closed to smaller businesses. By working with an agent company like Kazopp, which already enjoys established links and contacts abroad, SMEs now have the means to get their products/services in front of potential buyers, thereby accessing export markets quickly and without a large outlay.
If you’re interested in finding out more about this fast track to export sales, get in touch.