SMEs and service
sector businesses are being encouraged to explore the possibility of entering
new overseas markets after new research
by Leeds, York & North Yorkshire Chamber of Commerce and the Leeds City
Region Local Enterprise Partnership (LEP) revealed that just 1% of
non-exporters are about to start selling internationally soon.
The report, which is titled Beyond Borders: Realigning
the Leeds City Region Economy towards Export-Driven Growth, shows that
around half of all businesses in the Leeds City Region believe that they have no
export potential as it is not appropriate for their product or service.
The LEP and Chamber
want to change this mindset and get more businesses benefitting from the growth
opportunities in international markets as an alternative to weak domestic
demand. In the third quarter of 2011, 41% of exporters experienced an increase
in their overseas sales compared to 33% of businesses reporting an increase in
UK sales.
The research, which
was conducted amongst over 950 business owners and managers in the Leeds City
Region, identified that a lack of international contacts is the biggest barrier
to exporting and support in this in this area would help more businesses enter
new markets. In-country market intelligence and access to finance are also
cited as barriers to exporting, whilst, factors such as risk exposure and worries
about the global economy are less of a concern.
In 2012, both the LEP
and the Chamber will introduce a number of events and support services, including
country briefings and a directory of contacts available through the network of
international chambers of commerce, to promote the opportunities in
international markets to SMEs and service providers and help them to export. A
follow up document to the report is available which includes practical advice
and guidance from UKTI, NatWest and the Chamber.
Neil Mclean, chair of
the Leeds City Region LEP, says:
“The Leeds City Region
has strong assets and is in a great position to respond to the opportunities
presented by international markets. However, we need to work hard to finesse
these opportunities as well as help dispel some myths around exporting. The
findings of the survey indicate the need to provide better support and more
effective signposting to business interested in exporting. To that extent the
LEP is committed to working with partners and other organisations to help the
city region fulfil its export potential.”
Follow the link on the right to download the full report