Too many UK SMEs are giving international trade the cold shoulder despite compelling evidence that firms of all sizes operating overseas are weathering the economic crisis better than those solely focused on the home market. And with non-EU exports coming under the spotlight, the research pinpoints a rising challenge for SMEs: managers’ lack of foreign language skills, or in the words of Education Secretary Michael Gove, the nation’s “perverse pride” in monolingualism. Monolingual Brits are already finding themselves beaten to international business and marketing jobs by foreign candidates with superior language skills. These are the findings of a new study from global workplace provider Regus.

Only a fifth (21%) of the UK’s SMEs plan to dip their toes into overseas markets in the next two years compared to 38% in France and 24% in Germany. Reliance on the UK’s strong domestic market may have sufficed in the past but exports play an increasingly important role in today’s economy; the CBI recently reported that by building up an export presence outside Europe, the UK economy could grow by £20 billion.

Language skills in BRIC countries & South America are a necessity

Over two-fifths of SMEs (43%) do not believe local language fluency to be critical to overseas business success. Over a third (37%) would not require an expat manager appointed to run their overseas operations to speak the local language – presumably due to the dearth of multilingual candidates. Although it is true that UK firms can often rely on English as the ‘lingua franca’ of business, fluency in the customers’ language brings a wealth of commercial and cultural advantages – and when trading with the BRIC countries and South America, language skills are frequently elevated from advantage to necessity.

The research canvassed the views of 2700 business owners and managers in the UK, and found that only 35% of firms appointing an expat to manage overseas operations require them to be fluent in the local language. One reason may be that they simply cannot find a sufficient pool of multilingual British candidates. Less than half of firms (44%) give expat managers a cultural briefing prior to their move overseas. An above average proportion of firms (57%) choose to staff foreign operations with local managers, which may reflect a specific cultural strategy but is more likely to be influenced by the lack of foreign language-speaking ‘home-grown’ talent.

UK companies who export are more profitable

Nick Baird, CEO of UK Trade & Investment, comments: “The evidence outlined in this report corroborates UK Trade & Investment data that show that companies who export to any country, in any financial climate in the long term, perform better and are more profitable than those who do not. The report will reinforce the importance of exports in SMEs’ consciousness. Nationally, exports contribute 60 per cent of UK productivity growth and play a vital part of our prosperity and economic stability.

“In the current economic climate, no business can afford to sit still. The good news is that more and more SMEs are becoming export aware. But they can and must do better to seize opportunities in high growth markets. UK Trade & Investment supports British companies’ efforts to take advantage of these and other opportunities.”

Fluency in languages helps our national competitiveness

Stephan Chambers, MBA Programme Director, Saïd Business School, University of Oxford comments: “Despite the near ubiquity of English in world business, it’s clear that there will be an increasing premium on managers who speak Mandarin, Spanish, Portuguese, Arabic or Russian as the centres of business power move inexorably towards the new economic powerhouses of China and elsewhere. Fluency in languages other than our own must help insight and understanding and, in turn, our national competitiveness.”

Celia Donne, Regional Director at Regus adds: “Our new report makes it clear that UK firms who have diversified overseas are faring better in the current economic climate than those who have stayed within their home markets. This chimes with many commentators’ views that exports play an increasingly vital role in economic stability.”

“Staffing decisions and language capabilities are a real sticking point. Many UK firms rely on English as the ‘lingua franca’ of business, but speaking the customer’s language helps build lasting relationships that make commercial dealings run smoother, and could even prove a decisive factor in winning new business. All indicators suggest that UK firms must reduce their reliance on English to capitalise on the opportunities presented by the world’s growth markets. If the British workforce cannot plug the skills gap, then foreign candidates with language skills will be first to the job opportunities.”

A copy of the full report ‘The Export Imperative’ is available via the Regus press centre on www.regus.co.uk>>

FIND OUT WHY YOU SHOULD GROW GLOBAL>>

FIND OUT HOW YOU CAN GROW GLOBAL>>

FIND OUT IF YOU QUALIFY FOR A SUBSIDISED UKTI WEBSITE REVIEW TO INTERNATIONALISE YOUR WEBSITE>>

If so, enter a competition for a new prize, The Exporting for Growth Prize, which UK Trade & Investment (UKTI) has launched for the most workable new export idea ready to be converted into a successful international opportunity. They are particularly interested to hear from first time or novice exporters.

The winners will be innovative companies with the best exporting ideas pitched successfully to a panel of business “experts”.

There is a great prize package with access to an exciting and valuable range of support including expert business knowledge from UKTI, HSBC Bank plc and PwC.  In fact, all eligible companies will have access to an international trade adviser at UKTI and may be considered for UKTI’s award winning Passport to Export programme or Gateway to Global Growth programmes and other UKTI services.

Find out more about UKTI’s Exporting for Growth Prize competition>>

Using voice recognition, the mobile version of Google Translate can transcribe your voice, translate what you’ve said into another language, and then speak it back to you in another language.

Find out more about Google Translate for Mobile and to download>>

Does your business have an effective online strategy for boosting overseas sales? Is your site optimised for international search engines? When Googled internationally how is your company presented online?

This will benefit … London-based businesses seeking to increase the efficiency of their current website.

• Choose an international web strategy that is best for your business
• Find out how to make your website look more international
• Understand how to make your website multilingual
• Utilise free tools and applications
• Avoid costly trial and error approaches.

The Master Class will be held on Tuesday 28th February 2012, 09:00 -13:30, 60 Cannon Street, London, EC4N 6JP, UK.

TO BOOK A PLACE ON THE MASTERCLASS, PLEASE CONTACT SARAH CARROLL>>

CONTACT SARAH TO FIND OUT HOW TO BUILD AN INTERNATIONAL WEB STRATEGY>>

International trade has never been of more importance, especially in light of the current economic downturn here in Britain. Exporting accounts for nearly 30% of British GDP and is a crucial way to help companies to succeed and grow in today’s tough economic climate. This places exporting at the heart of the government’s approach to the recovery of the British economy.

The seminar offers SMEs, whether manufacturers or service providers, an excellent opportunity to evaluate the potential of exporting and expanding business in international markets. The Keynote Speaker is Lord Green, Minister of Trade and Investment.

Why attend this seminar?

• Learn more about how to develop your business internationally in a struggling economy

• Opportunity to network with experts from the City of London, LCCI and UK Trade and Investment

• Meet and network with successful SME exporters

• Learn how the City of London as a global trading centre can support your company’s export business

The seminar is FREE and will be held on Monday 17th October 2011, 09:00 -13:00, The Mansion House, London, EC4N 8BH, UK.

To book a place and for further details, please see here>>

Does your business have an effective online strategy for boosting overseas sales? Is your site optimised for international search engines? When Googled internationally how is your company presented online?

This will benefit … London-based businesses seeking to increase the efficiency of their current website.

• Choose an international web strategy that is best for your business
• Find out how to make your website look more international
• Understand how to make your website multilingual
• Utilise free tools and applications
• Avoid costly trial and error approaches

The Master Class will be held on Tuesday 27th September 2011, 09:00 -13:30, The Bermondsey Square Hotel, Bermondsey Square, Tower Bridge Road, near Southwark, London SE1 3UN, UK.

TO BOOK A PLACE ON THE MASTERCLASS, PLEASE CONTACT SARAH CARROLL>>

CONTACT SARAH TO FIND OUT HOW TO BUILD AN INTERNATIONAL WEB STRATEGY>>

Does your business have an effective online strategy for boosting overseas sales?  Is your site optimised for international search engines?  When Googled internationally, is your company found?

The workshop will explore practical steps you can take to boost your international business performance online. You will receive the latest web knowledge and tips so you can grasp the international opportunity that web 2.0 presents:

- choose an international strategy that is best for your business

- utilise free tools and applications

- avoid costly trial and error approaches.

The workshop will show you:

- how to develop credibility

- ways to ensure customer satisfaction

- ways to get more traffic

- ways to convert more customers.

This workshop will include an introductory presentation about the UK Trade & Investment Website Export Communications Review (ECR) service, by Sarah Carroll, a registered export communications consultant and will show you how to get your website ready for international business.

TO BOOK THE EVENT, PLEASE CONTACT SARAH CARROLL>>

CONTACT SARAH TO FIND OUT HOW TO BUILD AN INTERNATIONAL WEB STRATEGY>>

In a two-part BBC series called ‘The Chinese are Coming’, Justin Rowlatt investigates the spread of Chinese influence around the world and asks what things will be like if China overtakes America as the world’s economic superpower.

The programmes document some of the impacts resulting from globalisation and Chinese business activities in developing countries around the world, such as Africa & South America – including the impact of their activities upon both the natural environment, as well as upon the economies of countries such as the US & Europe. The documentary provides rare insights into the practical situation on the ground, covering a number of urgent and important issues (both positive & negative) that are having to be dealt with.

Watch “The Chinese are Coming” BBC programmes here>>