Flying the SME flag

SIR – CHANCELLOR GORDON BROWN HAS indicated that the Government’s management of the economy will form the basis of its electoral strategy in 2005.

Without a strong economy we simply cannot afford to invest any further resources in health, education and general infrastructures. However, the Treasury has demanded that support for small firms to export be significantly reduced.

If implemented, the current proposals from Government officials will make it very difficult for those companies to access effective support when they need it. This is coupled with a lack of recognition – by those advising the officials – of the worldwide need for UK security expertise and products. The failure to recognise this is a serious omission.

Great Britain’s exporters contribute around a third of total Gross Domestic Product. We are the fourth largest trading nation in the world. One job in every three depends on international trade. We feel that it makes questionable economic sense to seek comparatively minor savings by cutting the assistance given to small firms to help them progress their international trade activities. It makes better sense to review the large establishment cost of UK Trade and Investment needed to pass just £38 million of programme spend to the industry representative bodies accredited to assist small firms develop their international trade.

In turn, these industry bodies – in the main professional trade associations and chambers of commerce – deliver schemes and services to firms at little or no cost to the Government. Each year, they take more than 9,000 companies to some 450 trade shows and on trade missions. Yet current plans would see the scrapping of such services – services which smaller firms regularly tell us they value the most of any comparable Government scheme.

It appears that much of the £38 million is to be divided up among regional trade directors. Support will only be available to firms if they agree to sign up to a trade development plan for which regional directors will have to buy-in additional expertise and resources if they’re to deliver. We have been informed that funding for overseas trade shows will only be available for ‘new to export’ companies – a one-off support for their first overseas exhibition.

The BSIA has been an Approved Sponsor since 1990, at a time when UK exports in this sector were almost nil. Since that time there has been a total of about £3 million of support (approximately £200,000 per annum) through the SESA scheme. Security product exports are now realising over £300 million per annum, which represents tremendously good value for the UK economy.

As there’s no regional ‘cluster’ of security expertise, this vital area with truly worldwide potential isn’t a priority for most Regional Development Agencies, and little specific expertise is available to aspiring exporters seeking new markets.

We applaud the many trade associations and chambers of commerce who give excellent and experienced support to industry, and would like to see the continuation of their support for SMEs to exhibit and visit abroad. That support must be delivered on a national basis by appropriate trade bodies, backed up – if deemed necessary – by regional trade advisors.

Otherwise, we genuinely fear the loss of the UK’s trading profile abroad, and thus a considerable loss of export earnings. A loss which the nation can ill afford.

Ed. SMT totally concurs with your sentiments, David. Manufacturers like Pyronix and Dedicated Micros thrive on overseas trade. Like-minded companies should be offered similar opportunities.