SMEs export too
Start ups should be taught the economic advantages of exporting
WE NEED a change in the culture of the Welsh business community and government policy to open new opportunities in the global market.
A deeper business culture change would include a change in the outlook of Welsh Government policy, together with a change in the attitudes of implementation bodies.
What’s required is a change in outlook with regard to making Wales an export-driven nation and this will include revisiting Wales’s education system; entrepreneurial development policies; public sector grants; planning policy; as well as better targeting of European Structural Funds.
Developing the export component of businesses must be consistent with present attempts to revise and improve business support services, and must also be linked to the strategy of generating more business start-ups in Wales.
The Welsh Government needs to assist this cultural change in businesses by proactively demonstrating the benefits of overseas trade, while assisting them to develop an export capability and increase their interaction in overseas markets. It is a matter of encouraging involvement and assisting success.
But the Assembly Government must also recognise the importance and potential of small and medium size businesses in increasing Wales’ exporting activity and hope that this realisation will be translated in the services provided. While it will on occasions be natural to give attention to the most successful exporting businesses, we should be cautious not to lose sight of the contribution made by the sum total of all individual exporting businesses.
The focus of a strategy prioritising SMEs is extremely important and should include, for example: the strategic objective of creating 200 new exporters over next three years, which should concentrate nearly exclusively on the SME sector; increasing the value of Welsh trade overseas to be conducted by increasing SMEs exports; SMEs should make up the majority in any key sectors identified; and attempts at partnership with other business support services should relate to the services and programmes provided to SMEs.
It is important that we strive to improve Wales’ overseas trade performance as a whole, while also ensuring that businesses in every region within Wales are in step with the improvements. This will require performance/activity indicators on a regional level that will contribute to the national picture. External monitoring and evaluation of our success is necessary to ensure that we fulfil our goals.
We have to start seeing a substantial and visible improvement in the value of exports from Wales compared with other nations and regions of the UK. At present Wales’ export performance is not satisfactory and the only means that improvement can be demonstrated in a constantly changing global economic climate is to benchmark our performance with other regions and small nations.
One way the Welsh Government can realise this goal is to help individual business develop action plans to focus on ways to develop the capacity and capability of new-to-export and existing export companies.
This revolutionary approach would require the provision of relevant information, quality and specialist advice, hands-on practical assistance, while at the same time promoting and marketing Welsh products in the international marketplace.
These action plans should take the form of three distinct paths to success, which includes the provision of business information; help with promotion and marketing; and administrative and research support.
To increase the value of Welsh export, we should highlight the high quality and uniqueness of Welsh products and services. A strong ‘made in Wales’ brand image will help to deliver real gains.
There will be an advantage in promoting key sectors of Welsh industry in primary markets. Some of these key sectors have already been identified through the new Sector Panels as having a growth potential. Every effort should be made to encourage businesses in these sectors to trade overseas. However there are other sectors which will also be of great contributing value. These businesses and sectors should not be ignored as a result of a blinkered pre-occupation in favour of the identified sectors. All businesses, regardless of which industry they belong to, should have equal and free access to export services.
Primary markets will constantly change in a competitive and diverse global economy. It will therefore be necessary for the Welsh Government to be constantly aware of changing trends and be ready to revise their activities and classification of ‘key sectors’ in order to be continuously effective.
An integrated and efficient approach will require close co-ordination and cooperation with the visions, aims, objectives and practices of other public bodies, particularly to avoid acts of contradiction and duplication between themselves which has blighted our development in the past.
There is a call for Wales to establish itself as a truly competitive nation in a global economy. For this to become a reality the focus should be on exporting rather than importing.
We need to start promoting awareness of Wales internationally while marketing what our nation has to offer. A successful exporting strategy will depend to a great degree on fostering a more entrepreneurial culture in Wales that requires a change in attitudes, both within the public and private spheres.
It is important to stress that in the drive to encourage more cases of domestic business start-ups, the economic gains of developing an exporting capability should also be highlighted from the outset. The main role of the Welsh Government must be to address and alleviate the difficulties and problems businesses face in relation to export activity, by providing information and assistance; promoting Welsh products to foreign countries; and opening markets on an international level.
This strategy should create the right situation to sell our products and services to the world, and by doing so will positively contribute to the vision of increasing the prosperity of the people of Wales.
