I read today that the government has pledged “personal” support to help UK medium-sized businesses trade with emerging markets. Yesterday the trade minister Lord Livingston announced that he will write to all of the UK’s 8,900 mid-sized businesses (those with a turnover between £25m and £250m a year) to offer them support from UK Trade and Investment in a bid to boost flagging exports.

You might ask this: aren’t these businesses already big enough to get on with their export activities. Surely it’s firms in the £1m to £10m range that really need help?

Anyway, back to Lord Livingston. It seems that his move comes after it emerged that just 17 per cent of mid-sized businesses in the UK currently transact business outside of the EU. Germany does 25 per cent whilst Italy does 30 per cent. Earlier this month the government said that exports have only seen “modest growth” since 2011. The Office of Budget Responsibility attributed weak export figures to low demand in Europe, cementing the need for UK businesses to trade with emerging markets instead.

You might ask, and I would agree with you, how it that the Germans and Italians have cottoned on how and where to export but we haven’t?

But the IOD thinks it’s all a good idea. Alexander Ehmann, deputy director of policy at IoD says: “Doing business abroad will always involve risk, so companies want to have as much information as possible before diving in.”

The BBC wrote last week, here, that efforts to boost UK exports are being hampered by strict visa controls and a lack of co-operation between government departments, MPs have warned. The Public Accounts Committee (PAC) says the UK “is not performing as well as Germany, France and Italy”.  The PAC’s report said that despite the Foreign & Commonwealth Office (FCO) and UK Trade and Investment (UKTI) spending £420m last year on promoting exports, growth remained flat. Worse still, the FCO lack the necessary information to assess the effectiveness of its promotional activities, while UKTI needs to work harder on finding new opportunities in overseas markets.

The British Chambers of Commerce say that “More support for SMEs looking to trade internationally is needed, and this means giving UK businesses more resources in areas such as trade finance, insurance and promotion.”  Note the emphasis on SMEs rather than firms in the £25m to £250m range.

So, against this background, it’s hard to see what Lord Livingston is up to.

Does anyone out there know?


piggggggy
But things are looking up, at least for pigs. Three British pig breeding companies are preparing to start exporting pig semen to China after a deal was struck between the two countries last month. Half the world’s pigs are in China and the deal is worth up to £45m a year to British pig producers.

Martin Pollins

Managing Director at One Smart Place
Martin Pollins is a Chartered Accountant and MBA with wide experience in corporate finance and business management. He has served on the boards of several companies, including those listed on the London Stock Exchange, AIM and OFEX. He is Chairman and Founder of OneSmartPlace and was a Council member of the Institute of Chartered Accountants in England and Wales from 1988 to 1996. He was managing partner of PRB Martin Pollins, based in Sussex, the first Accountancy firm to advertise on British television.He went on to create and launch the CharterGroup Partnership (the UK’s first Accountancy network) and then LawGroup UK (at the time, one of the largest networks of lawyers in the UK). In recent years, he helped to raise several £millions to fund British films such as The Da Vinci Code, Bridge of San Luis Rey, Head in the Clouds and Merchant of Venice with actors such as Charlize Theron, Robert De Niro, Al Pacino, F. Murray Abraham. Kathy Bates, Gabriel Byrne, Geraldine Chaplin, Tom Hanks, Ian McKellen, Audrey Tautou, Penélope Cruz, Steven Berkoff, Lynn Collins, Jeremy Irons, Joseph Fiennes and many more.

He has written over 700 business publications (see Glossaries at http://onesmartplace.com/resources/glossaries/) and is editor of Better Business Focus (see http://onesmartplace.com/resources/better-business-focus-magazine). His Blog, on a wide range of subjects can be found at: http://onesmartplace.com/blog/
Martin Pollins

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