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Home / North West / Government looks to the SME and Entrepreneurial sector to lead the way in exports

Government looks to the SME and Entrepreneurial sector to lead the way in exports

Government looks to the SME and Entrepreneurial sector to lead the way in exports
THE financial difficulties of the last few years have once again made government look to the SME and entrepreneurial sectors to take up the slack as a result of the reductions in public sector employment.
News
October 11 2012
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RSM Tenon

Peter Donnely RSM Tenon

Peter Donnelly, Head Of International, North West at RSM Tenon

 

THE financial difficulties of the last few years have once again made government look to the SME and entrepreneurial sectors to take up the slack as a result of the reductions in public sector employment.

In the life of the current parliament the number of people employed by the private sector has grown by over a million. In order to further grow the economy without an overreliance on domestic only activity government policy is seeking to return the UK to a country of exporters something that has been largely ignored during previous periods. In this context the SME sector is being asked to step up and play its rightful part in that.

Although the UK grew up on international trade the SME sector and particularly a lot of the newer entrants are perhaps inexperienced in the opportunities and risks that looking to overseas markets can bring to their business. As with all business opportunities if well researched, developed and planned then forays into new and different markets can be great opportunities but failure at any of the key stages can place the business at risk.

Businesses intending to enter new markets abroad should:

• Research the market for your product or service – legal, ethical and culture issues can all have impact e.g. in some markets certain ingredients in a product would make it illegal or at least culturally unacceptable.
• Consider how you will market and sell into the country – agents, distributors, joint ventures or subsidiary can all have a place to play
• Consider the tax, accounting and regulatory regimes – don’t just assume it will be the same as here – it’s often not!
• Consider how you will finance the business when you go offshore if you are using asset based lending will your lender still work with you when you are owed money from foreign companies. Some will and some won’t!
• Consider how management of this new market fits within the existing managements teams commitments, distance and cultural issues are often underestimated when it comes to time required to support a new venture. It’s important the new doesn’t damage the old.

Given all the above it is important to recognise that a lot of the success stories of the last few years in the SME arena have been supported and driven by overseas markets and as such the opportunities are there to be taken.

There is a lot of help and assistance available including:

• UKTI – the government body charged with helping UK business abroad including a special week – UK Export week- upcoming on 12 November.
• Access to professional advisers with expertise in helping businesses just like yours enter new markets particularly where they have access to colleagues in other countries also specialising in the SME market space.
• Join one of the trade groups such as British American Business Council and Chinese British Business Council where you can link up with businesses who have ” been and done it” and are keen to share their first hand experiences with you.
In short the opportunities are there to be taken, the help is available and if you plan correctly they can assist your businesses to grow.

Look to others markets as they will be looking to yours!

For further information please contact Peter Donnelly, Head of International, North West, RSM Tenon on +44 (0)7971 115 050 or peter.donnelly@rsmtenon.com

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