Overall observations on the YouGov study
We can see evidence that the more mature and experienced the respondent, the more likely it is theyll see Europe as a positive environment for exporting. Exporting is also generally not as relevant for those in the first year of trading, which is understandable. When these SMEs expand though it’s likely this will change. Bigger companies tend to have more positive attitudes towards exporting in Europe.
The reality is most companies will go where the money is but this doesnt mean bosses dont have contradictory personal political views.
Legal/regulation issues as a barrier to exporting products/services abroad
Im not surprised by these feelings, in fact through previous research I have conducted into regulations I found that nearly any business person in most circumstances would always point to these issues. Digging deeper though I have also noticed over the years that “regulations” can sometimes be a “moan factor” in some circumstances regulations arent always that tough but businesses still tend to lament them.
The same applies when it comes to hiring staff from outside the UK many feel that regulations are a barrier even when it comes to hiring within the EU, however sometimes this is not always the case.
Exporting is Great campaign has proved to be unsuccessful
I have to admit I also hadnt previously heard of the governments Exporting is Great campaign. In my experience, government and local authorities dont spend enough time advertising and communicating these types of schemes even though Im sure it would be said otherwise. One would imagine that the respondents of this YouGov survey are part of the intended audience for this campaign which is somewhat damning.
One of the reasons why this campaign may not be as successful is because with these types of campaigns and initiatives there are often things that companies have to do to in order to take part. For example, filling out forms or divulging sensitive information. In my experience, government initiatives can be intrusive and time consuming.
Medium sized enterprises are more likely to have heard about the Exporting is Great campaign.
Europe as a profitable region for UK SMEs to export to
Having 64 per cent of respondents saying that Europe is/would be the most profitable region for UK SMEs to export products/ services to is a really strong response, which underlines the points set out by the Confederation of British Industry (CBI) and similar pro-EU business lobbying organisations. This is also a strong endorsement for the EU despite other responses that are somewhat more ambiguous or negative.
Once again, SME decision makers in Scotland had some of the most positive opinions when it comes to the EU. This often comes up in media accounts of Scotland, as having a more positive view of the EU is a significant part of their political orientation. Scotland often sees things differently; Scotlands national identity is steeped in having their own desires and views for the future of the country.
Read more to find out how SMEs view the global stage.
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Worldwide exports by Industry
The results seem to show that industries which specialise in products are more positive towards worldwide exports than those that provide services. For example, the manufacturing industry consists of a huge number of businesses, some of which sell high-end products around the globe. IT and telecoms businesses on the other hand arent as concerned with exporting as much of their work is done online, thus already breaking down distance and regulation barriers.
This might even suggest that these types of businesses by and large view themselves as global in orientation.
Female vs male SME decision makers
Its important to note that in this study there were notably more male respondents than female (445 to 173), which says something about SME decision makers and UK businesses in itself. However, the female respondents may be more concerned over the cost of exporting to other countries due to the type of services or products they offer. For example, if their profit margins are only small the cost of exporting may not be feasible or make business sense.
Do SME decision makers view their firms as global
Overall, as bosses grow their firms they start to look into new markets, which includes exporting to Europe and then worldwide. Most companies, even SMEs, want to internationialise as soon as possible. However, this means spreading the efforts of the businesses, which means it’s harder for particularly small enterprises to move into new markets, especially within their first year of trading.
Whether an SME views itself as global can also depends on what they are selling. Certain industry bosses are more inclined to view themselves as global, as we have seen with respondents in the manufacturing industry.
If SMEs knew more about the benefits exporting could bring, do you think they would vote differently in the EU Referendum
Probably yes. If the governments Exporting is Great campaign was more successful, there may well be a greater willingness from SME decision makers to think about staying within the EU. The previous study showed us that politically and ideologically, most SME decision makers are more conservative, but when it comes to making money for their businesses they may well want to stay in the EU. There is a considerable amount of information about this out there, for example the CBI have come out strongly to stay in the EU, whilst the Federation of Small Businesses and other similar lobbying organisations are saying the same.
If the government really deepens its campaign in terms of the benefits of staying in the EU and potentially even subsidising the cost of businesses exporting to not just Europe but also the rest of the world, one might think it could change.
On the other hand, our government is positive when it comes to staying in Europe, so it makes sense for them to have a SME, politically inspired exporting campaign that focusses not just on the EU but also the rest of the world. Our government wants to stay in Europe, however the big question is whether prime minister David Cameron can persuade his colleagues to do the same.
