AXA - Be Life Confident

Asia represents a bigger competitive concern

Research released today by AXA Group, shows the majority of Britain 's small businesses are not concerned by expansion of the EU and some have even benefited from it. 9% of those questioned felt it had been good for their business and 75% said they saw this as having no impact at all. In fact, a quarter of businesses are more concerned about competition from Asian markets than from an enlarged Europe.

The AXA research did highlight ongoing concerns about the legislative impact of greater involvement in Europe. 48% felt that increased EU legislation was bad for business while 28% saw lower wage cost competition in Europe as further bad news.

Olivier Mariee, UK Group Marketing Director, AXA commented: "Our research does paint a mixed picture of small business attitudes to international trade. While a large number of businesses are clearly concerned not just by increased competition from within Europe but by growing pressure from Asia, it would be wrong to say this is a universally held fear. There are clearly very many businesses embracing international trade, trying to create an opportunity out of an inevitable enlargement of both the EU and greater involvement of Asia . However, there is plenty of scope for much more action from Britain's small business to capitalise on international export markets."

Mariee continues: "While there are great profits to be made from expanding overseas, it is imperative that everyone embarking on this do so with their eyes open and their businesses protected. Sound advice from organisations with experience in export and international trade is critical."

John Dunsmure, Managing Director of the British Chambers of Commerce added: "We advise and support thousands of businesses a year who are looking to grow overseas. These results are encouraging at one level as they show Britain's small businesspeople are taking the threats and opportunities of international trade seriously. We would like to see many more of our member companies grasping the nettle here as export or international trade clearly doesn't register as an opportunity for most in an increasingly competitive home market."

The British Chambers of Commerce and AXA advise businesses considering starting to export or increasing their activity to look at the following:

1. Get in touch with as many support organisations as possible for advice.
   In addition to the BCC, UK Trade and Investment (UKTI) is an important source of information and they have over 300 regional trade advisors across the UK who can give advice. They organise events and produce regular country reports and advice on a range of important issues. Go to www.chamberonline.co.uk (the BCC) and www.uktradeinvest.gov.uk (UKTI) for more information.
2. Ensure your business is ready to export.
   Have you considered the implications of export on finance, staffing, product and communications? Could you cope with a significant increase in demand for your product or services?
3. Decide where to export carefully and conduct detailed research.
   The BCC runs the Export Marketing Research Scheme on behalf of UKTI which can help fund research and gives advice on how to research markets. The BCC also runs a two day training course called 'Researching Export Markets' which covers the whole process. Businesses interested in attending should contact the BCC for details. Also you can attend a 'Passport to Export' programme and information on this is available from a local UKTI representative.
4. Invest in good legal advice to protect your business.
   Ensure your contracts and business practices are compliant with any national, state or regional legal requirements in your export market and that you have adequate business protection e.g. accounting or financial reporting; health and safety; orders and payment; intellectual property etc.
5. Don't always assume that it is easier to export to English speaking countries like the US.
   This is often not the case as many English speaking countries will have national, state and even local regulatory issues to consider. Exporting to EU member states may be easier because of consistent regulation across the region and English remains the international language of business in general.
6. Don't be put off by language barriers if they exist.
   The BCC runs a scheme on behalf of UKTI called 'Export Communications Review'. This helps business tackle language barriers which can occur when exporting to non English speaking countries.
7. Prepare a business continuity plan and adequately insure your business in the case of problems.
   Look at all the potential risk areas your business is taking on by starting or increasing its export activity. Contact your insurer or broker to see what additional protection you may need. You can find information on how to prepare a continuity plan by going to www.axa4business.co.uk.

For more information on international trade and other business issues please go to www.axa4business.co.uk.

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