Businesses – small, medium or even large – are missing the chance to tap into potentially lucrative overseas markets because of a fear of the unknown.
Business owners and directors are worried about resources, costs and getting paid; a lack of knowledge about international markets; customs, tax and language barriers, and getting their products to their customers.1
Such fears mean that many won’t even consider exporting their goods overseas and might only contemplate the possibilities when they receive an inquiry. Some may “have a go” but frequently give up when the barriers are perceived to be too daunting.
The reticence to explore international opportunities means SMEs may be missing out on many benefits, which, according to UK Trade & Investment – the government department that works with UK-based businesses to ensure success in international markets – include:
- improved productivity and financial performance
- increased resilience of revenues and profits
- growth and economies of scale
- increasing the commercial lifespan of their products and services
UKTI figures show that:
- 59% of companies find that overseas trade leads to fresh ideas
- Exporters experience a 34% productivity increase
- There is an 11.4% better survival rate among companies who export
During Export Week, May 13-17, TNT Express, working in partnership with UKTI, is holding a series of workshops for SMEs who want to find out more about high growth markets.
Alistair Cochrane, Managing Director TNT Express Services UK & Ireland, said: "International shipping can be straightforward when it goes well. Often customs terminology, procedures and a lack of international knowledge can scare some businesses from taking the first steps towards becoming exporters.
"TNT Express provides support and guidance through the export process to help get their products delivered to their customers – on time and on budget."
The high growth markets – based on rising GDP and developing economies – include Brazil, China, India, Turkey, Colombia, Egypt, Hong Kong, Indonesia, Malaysia, Mexico, Qatar, Russia, Saudi Arabia, Singapore, South Africa, South Korea, Taiwan, Thailand, Vietnam and the United Arab Emirates (UAE).
TNT Express – working with UKTI – is able to put potential exporters in touch with experts who can offer advice on export finance, identifying the right markets and contacts, attending trade fairs and exhibitions, access to international trade advisers and provide dedicated programmes for the first time exporter.
One of the key workshops, hosted by TNT Express, will focus on Transport and Logistics in which business owners can benefit from practical advice in selecting the right partner to transport goods or samples, help to simplify the shipping process with a special focus on China, Hong Kong and the UAE, which are three of the top traffic lanes covered by TNT Express.
The workshop comprises a 60 minute presentation including Q&A covering supply chain, best transportation routes, foreign customs legislation and invoicing documentations. Other workshops during the week will cover Unlocking Potential in Global Markets.
Alistair Cochrane added: "TNT Express will provide specialist advice on all aspects of shipping from including customs clearance, invoicing requirements even packaging and labelling.
"Our experts with local knowledge help to smooth the progress of parcels within a highly secure network that covers more than 200 countries."
Pull out stats
1-in-4 non-exporters believe exporting is prohibitively expensive2
1-in3 non-exporters claim they don’t know which markets to target3
35% of non-exporters believe their products are unsuitable for export3
1-in-4 view local knowledge, language and tax as barriers3
46% of non-exporters feel they need trusted distribution partners in order to export successfully3
1 UK Trade & Investment - OMB Research Ltd 2011 Internationalisation Report
2 Barriers to Export Research University of Nottingham 2007/12
3 Enterprise Nation, Going Global Survey 2010