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Research Report

Exporting and International Trade across the Midlands Engine

Date: 03 March 2020

Table of contents

Table of contents 1. Headlines and Summary ....................................................................................................................................... 1

1.1 Headlines......................................................................................................................................................... 1

1.2 Summary ......................................................................................................................................................... 1

2. Introduction ............................................................................................................................................................ 5

2.1 Background ..................................................................................................................................................... 5

2.1.1 Support for business ............................................................................................................................ 6

2.1.2 LEPs and their boundaries .................................................................................................................. 6

2.2 Aims and objectives ...................................................................................................................................... 7

2.3 Methodology .................................................................................................................................................. 8

3. Findings - Exporting in the Midlands Engine .................................................................................................. 10

3.1 Exporters in the Midlands Engine ............................................................................................................ 10

3.1.1 Indicative numbers of firms .............................................................................................................. 14

3.1.2 Detailed analysis of exporters ......................................................................................................... 16

3.2 Non-exporters in the Midlands Regions................................................................................................ 28

3.2.1 Interested non-exporters ................................................................................................................. 28

3.2.2 Uninterested non-exporters ............................................................................................................ 31

3.3 Contribution to national targets ............................................................................................................. 33

4. Conclusions .......................................................................................................................................................... 36

4.1 Levels of exporting ..................................................................................................................................... 36

4.2 Nature of exporters ................................................................................................................................... 37

4.2.1 Markets ................................................................................................................................................. 37

4.2.2 Value and duration of exporting ..................................................................................................... 37

4.2.3 Obstacles and Support ...................................................................................................................... 37

4.2.4 Future plans and barriers .................................................................................................................. 37

4.3 Non exporters ............................................................................................................................................. 38

4.3.1 Interested non-exporters ................................................................................................................. 38


4.3.3 Contribution to national targets ..................................................................................................... 39

5. Appendices ........................................................................................................................................................... 40

5.1 Midlands Engine, WMCA and LEP Data Sheets ................................................................................... 40

5.1.1 Midlands Engine Data Sheet ............................................................................................................. 41

5.1.2 WMCA Data Sheet ............................................................................................................................ 42

5.1.3 LEP Data Sheet – Black Country LEP ............................................................................................ 43

5.1.4 LEP Data Sheet – Coventry & Warwickshire LEP ...................................................................... 44

5.1.5 LEP Data Sheet – Derby, Derbyshire, Nottingham & Nottinghamshire (D2N2) LEP ........ 45

5.1.6 LEP Data Sheet – Greater Birmingham & Solihull LEP ............................................................... 46

5.1.7 LEP Data Sheet – Greater Lincolnshire LEP................................................................................. 47

5.1.8 LEP Data Sheet – Leicester & Leicestershire LEP ....................................................................... 48

5.1.9 LEP Data Sheet – South East Midlands LEP (SEMLEP) ............................................................... 49

5.1.10 LEP Data Sheet – Stoke-on-Trent & Staffordshire LEP ............................................................. 50

5.1.11 LEP Data Sheet – The Marches LEP ............................................................................................... 51

5.1.12 LEP Data Sheet – Worcestershire LEP ......................................................................................... 52

5.2 Additional data tables and charts ............................................................................................................ 53

5.2.1 Regular exporters by sector and size band .................................................................................. 53

5.2.2 Obstacles to exporting ...................................................................................................................... 54

5.2.3 Increasing exports .............................................................................................................................. 55

5.2.4 Support for exporting ........................................................................................................................ 57

Table of contents

5.2.5 Interested Non-exporters ................................................................................................................ 59


5.2.7 Odds ratios .......................................................................................................................................... 63

5.3 Survey Questionnaire ................................................................................................................................ 65

Table of figures Figure 1: Map of Midlands Engine LEPs ..................................................................................................................... 7

Figure 2: Exporting levels across the Midlands Engine ........................................................................................ 10

Figure 3: Exporting levels across the Midlands Engine – % of firms that export by sector ........................ 11

Figure 4: Exporting levels across the Midlands Engine – % of firms that export by LEP area .................... 12

Figure 5: Exporting levels across the Midlands Engine – % of firms that export by size band ................... 13

Figure 6: Exporting levels across the Midlands Engine – % of firms that export by ownership ................ 13

Figure 7: Exporting levels across the Midlands Engine – % of firms that export by turnover ................... 14

Figure 8: Top 20 export markets – by % of exporters trading with each market........................................ 17

Figure 9: Why export? Reasons for exporting by % of exporters citing reason........................................... 18

Figure 10: Regular exporters – % of firms describing themselves as ‘regular’ exporters, by LEP area ... 19

Figure 11: Proportion of turnover from exports – % of exporters ................................................................. 19

Figure 12: Duration of exporting – % of firms exporting by time period....................................................... 20

Figure 13: Obstacles to exporting – % of firms experiencing obstacles by LEP area................................... 21

Figure 14: Nature of obstacles faced – % of exporters experiencing specific obstacles ............................. 21

Figure 15: Overcoming challenges – % of exporters overcoming challenges through specific mechanisms

......................................................................................................................................................................................... 22

Figure 16: Ambition to increase exports – % of exporters with ambition to increase exports, overall and

by LEP area .................................................................................................................................................................... 23 Figure 17: Top 10 barriers to increased exporting – % of exporters with ambition to increase exporting

......................................................................................................................................................................................... 24

Figure 18: Support for exporting – % of exporters who have sought support, overall and by LEP area 24

Figure 19: Nature of support for exporting – % of exporters who have accessed support ...................... 25

Figure 20: Organisations providing export support – % of exporters who sought support ...................... 26

Figure 21: Satisfaction with support received – % of exporters who received support ............................. 26

Figure 22: Desire for future exporting support by LEP – % of exporters ...................................................... 27

Figure 23: Exporting support format preferences – % of exporters seeking future support .................... 27

Figure 24: Access to Exporting is Great website – % of exporters .................................................................... 28

Figure 25: Interest in exporting among non-exporters – % of non-exporters by LEP area ....................... 29

Figure 26: Interest in exporting – % of non-exporters interested in exporting, by sector ........................ 29

Figure 27: Interest in exporting – % of non-exporters interested in exporting, by size band ................... 30

Figure 28: Exporting activities and interest in exporting – % of all firms by LEP, 2019............................... 32

Figure 29: Reasons for not seeking to start exporting – % of business that are not interested in exporting

......................................................................................................................................................................................... 33

Figure 30: Regular exporters – % of firms describing themselves as ‘regular’ exporters, by sector........ 53

Figure 31: Regular exporters – % of firms describing themselves as ‘regular’ exporters, by size band .. 53

Figure 32: Obstacles to exporting – % of firms experiencing obstacles by sector ....................................... 54

Figure 33: Obstacles to exporting – % of firms experiencing obstacles by size band .................................. 54


by sector ........................................................................................................................................................................ 55


by size band ................................................................................................................................................................... 55

Figure 36: Support for exporting – % of exporters who have sought support, overall and by sector .... 57

Table of contents

Figure 37: Support for exporting – % of exporters who have sought support, overall and by size band

......................................................................................................................................................................................... 57

Figure 38: Desire for future exporting support by sector – % of exporters ................................................. 58

Figure 39: Desire for future exporting support by size band – % of exporters ............................................ 58

Figure 40: Top 10 reasons to be interested in exporting – % of interested non-exporters ...................... 60

Table of tables Table 1: Respondents to the survey .......................................................................................................................... 9

Table 2: Indicative numbers of exporters across the Midlands Engine, by LEP area .................................... 15

Table 3: Indicative numbers of exporters across the Midlands Engine, by sector ........................................ 15

Table 4: Indicative numbers of exporters across the Midlands Engine, by size band ................................... 15

Table 5: Indicative numbers of exporters across the Midlands Engine, by ownership ................................ 16

Table 6: Indicative numbers of exporters across the Midlands Engine, by turnover ................................... 16

Table 7: Estimates of exporting growth ................................................................................................................. 35

Table 8: Estimates and denominators in the LEP Data Sheets .......................................................................... 40

Table 9: All Barriers to increased exporting – % of exporters with ambition to increase exports ......... 56

Table 10: Markets that interested non-exporters want to export to – % of interested non-exporters 59

Table 11: Reasons for not seeking to start exporting by LEP area – % of businesses that are not interested

in exporting ................................................................................................................................................................... 61

Table 12: Reasons for not seeking to start exporting by sector – % of businesses that are not interested

in exporting ................................................................................................................................................................... 62

Table 13: Reasons for not seeking to start exporting by size band – % of businesses that are not interested

in exporting ................................................................................................................................................................... 63

Table 14: Odds ratios by size band ......................................................................................................................... 63

Table 15: Odds ratios by sector .............................................................................................................................. 64

Table 16: Odds ratios by ownership ....................................................................................................................... 64

Headlines and Summary

Page 1

1. Headlines and Summary

1.1 Headlines

Across the Midlands Engine, an estimated 16% of businesses export. This translates

into approximately 14,670–15,180 firms employing five or more people that export.

There is some variation across the LEPs, but this seems to be explained by the nature

of the underlying business population, rather than any geographical factors.

Sector, firm size and ownership (UK or foreign) are the key determinants of whether a firm exports or not.

Almost half of exporters (an estimated 49%) are ‘regular’ exporters, indicating

that the activity is a core part of their business plan or model.

Half of exporters (an estimated 50%) derive less than 10% of turnover from

overseas customers. Nevertheless, one in five (an estimated 20%) derive more than 50%

of turnover from exports.

The majority of businesses that export do so for strategic rather than tactical

reasons.

An estimated 71% of exporters have been doing so for more than 10 years.

The EU and North America (notably France, Germany and the USA) are the main export

markets already being served.

Demand for exporting services is evidenced, as well as satisfaction with the quality of

support services received.

Many of the support needs concern the provision of information and therefore should be

relatively easy to resolve.

The challenges faced by exporters and those with ambitions for exporting are often

addressed by the services offered by relevant organisations.

There is a significant opportunity in the economy to support around 1,200 firms that are looking to export in the future.

The vast majority of businesses (an estimated 83%) employing over five people do not

export and have no plans to (uninterested non-exporters). Within this group, around two

thirds are unlikely to ever export based on the nature of their products and services.

1.2 Summary

International trade has been identified by the UK Government as a key contributor to future

economic vitality. In 2018, the Government set out an ambition to raise the value of exports as

a proportion of GDP from 30% to 35%.

The Department for International Trade (DIT) is responsible for promoting UK trade across

the world. DIT maintains a close working relationship with Local Enterprise Partnerships (LEPs),

the principal means for delivering government support to business at the local level. LEPs are

key partners in the drive for growth, particularly through international trade.

The Midlands Engine represents one of the two key efforts by government (along with the

Northern Powerhouse) to encourage economic growth through devolution. The Midlands

Engine area stretches from Wales to the North Sea and the northern Home Counties to the

Peak District and covers ten Local Enterprise Partnerships:

1. Black Country Local Enterprise Partnership (BCLEP)

2. Coventry and Warwickshire Local Enterprise Partnership (CWLEP)


Page 2

3. Derby, Derbyshire, Nottingham and Nottinghamshire Local Enterprise Partnership

(D2N2LEP)

4. Greater Lincolnshire Local Enterprise Partnership (GLLEP)

5. Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP)

6. Leicester and Leicestershire Local Enterprise Partnership (LLEP)

7. Marches Local Enterprise Partnership (MLEP) 8. South East Midlands Local Enterprise Partnership (SEMLEP)

9. Stoke-on-Trent and Staffordshire Local Enterprise Partnership (SSLEP)

10. Worcestershire Local Enterprise Partnership (WLEP)

The client, which includes DIT and EMB, the organisation with local responsibility for delivering

export support services in the East Midlands, seeks to understand better the state of

export/international trade within the region. The aim is to ensure both policy and delivery of

support services are informed by up to date and robust evidence.

EMB commissioned Qa Research and Ortus Economic Research to deliver a primary research

exercise focused on exporting in the Midlands Engine area. The study aimed to:

Establish baseline data on export/international trade at the spatial level of Local Enterprise

Partnerships across the geography of the Midlands Engine.

Evaluate the importance of international trade.

Increase understanding of the profile of exporting businesses and their key markets to

guide and direct support aimed at increasing trade.

This document presents the findings from that research. The study consisted of a large scale

representative survey of businesses employing five or more across the Midlands Engine. The

questionnaire was designed in conjunction with the client and followed on from a similar 2017

survey, employing a large number of common questions to facilitate comparison.

The survey delivered 1,798 responses across the Midlands Engine, with a minimum of 175 in

each LEP area. This included accounting for the area of overlap between GBSLEP and WLEP as

well as GBSLEP and SSLEP: respondents in the overlapping areas contributed to the data and

analysis for both LEPs in which they are located. The survey sample was designed to be

representative of the business population in each LEP (employing five or more people), by sector

and employment size-band. Confidence intervals for individual questions will of course vary and

for some questions, sample sizes are very small.

Care should be taken when interpreting the results, and especially when comparing the 2019

and 2017 surveys. While the survey sample is designed to be representative at LEP level, by

sector and size-band, the results are susceptible to variability in terms of their coverage of

exporters and non-exporters. Limited comparisons between surveys are made in this report,

and only where it is possible to do so. Comparisons between the two surveys which are based

on small numbers of respondents are not shown. The reader is cautioned against relying on

findings based on small sample sizes.

The report is structured into five major sections including this summary. Section 2 introduces

the background to the study, covers the aims and objectives and describes the methodology

employed.

The key findings are presented in Section 3. Firstly, the overall exporting rate is identified and

this is followed by an analysis of exporters in the Midlands Engine. What follows is then an

analysis of firms which are not currently exporting but have indicated that they are looking to

start exporting (‘interested non-exporters’) and then an analysis of firms that are not looking

to start exporting (‘uninterested non-exporters’). This section demonstrates that the majority


Page 3

of firms employing five or more people (an estimated 83%) do not export and have no plans to,

an estimated 1% are looking to start exporting and an estimated 16% of firms are already

exporting. Exporting activity varies across the ten LEPs in the Midlands Engine, from an

estimated 19% in D2N2 to an estimated 13% in Greater Birmingham & Solihull. Some sectors

are more export active that others, with the highest levels in Production (an estimated 25%)

and the lowest in Finance (an estimated 5%). Having reviewed all relevant data, there is nothing to suggest that exporting rates are related to geographical factors, but rather are a function of

the underlying business base, e.g. sector, firm size and ownership. It is estimated that there are

between 14,670 and 15,180 exporters employing five or more people across the Midlands

Engine.

The survey reveals a number of findings about exporters across the Midlands Engine:

Almost half of exporters (an estimated 49%) describe themselves as ‘regular’ exporters,

indicating that exporting is a central part of their business model.

Half of exporters (an estimated 50%) derive less than 10% of turnover from overseas

customers. However, one in five (an estimated 20%) derive more than 50% of turnover

from exports.

The majority of businesses that export do so for strategic rather than tactical reasons.

More than two in three exporters (an estimated 71%) have been doing so for more than

5 years.

The EU and North America (notably France, Germany and the USA) are the main export markets already being served.

Key obstacles to growth of exports were: local regulation and standards, supply chain

and/or logistics issues and paperwork.

When exporters have sought support for exporting in the past, it has tended to be for

access to funding, to access information or workshops on the key aspects of exporting.

Demand for exporting support services is evidenced, as well as satisfaction with the quality

of support services received.

Section 3 also covers results associated with non-exporters, both those with an ambition to

export (interested non-exporters) and those without (uninterested non-exporters). Interested

non-exporters are estimated to make up 1% of firms employing more than five people. They

total approximately 1,200 firms and therefore represent a sizeable population of would-be

exporters that also indicate they would be interested in receiving support (an estimated 67%).

The findings indicate that interested non-exporters see exporting as either an important,

proactive mechanism by which they can enhance their business or as a reactive, opportunistic

activity, suggesting that there is a strategic driver to their export ambition.

However, while awareness of support providers is relatively high, use of the Exporting is Great

website is low among this group and this should be seen as a key challenge for DIT and local

exporting support providers to address. The support demands are largely informational in

nature and therefore could be readily addressed through the development, promotion and

communication of relevant materials, much of which is doubtless already in existence.

Uninterested non-exporters make up the majority of firms employing five or more people (an

estimated 83%) and two thirds are unlikely to ever export because their products and services

are not relevant to export markets (i.e. their market is local or, at best, national). This is an

intuitive finding and allows support services to be targeted at firms for whom export markets

are relevant and which are not exporting for reasons associated with business planning, a lack

of information or knowledge or uncertainty that exporting will be a success.


Page 4

Section 4 draws the findings together in a set of conclusions:

The levels of exporting exhibited across the ten LEPs in the Midlands Engine area are in line with what might be expected from the national data.

The majority of businesses employ business models for which exporting is simply not

appropriate.

Sector, firm size and ownership are the key determinants of whether a business will

export.

The focus for EMB, DIT and partners should be on engaging with those businesses that

demonstrate the characteristics of typical exporters.

Markets in the EU are very important in that a large numbers of exporters access them. France and Germany are the most commonly cited overseas markets, followed by the

USA.

There are clearly two groups of exporters; those that see themselves as regular

exporters (half) and those who may be seen as occasional or opportunistic exporters

(half).

For a large proportion of exporters, exporters contribute a small percentage of

turnover. On the other hand, for a small but not insignificant proportion, they are

absolutely crucial to the sustainability of their business.

A large majority of exporters have been selling goods and services overseas for some

years. These are clearly experienced traders that need to continually evolve their offer

and business in order to remain competitive in overseas markets.

Exporters utilise a range of support providers and these may reflect the type of assistance being sought. Further research may help in making signposting more effective.

Although less than half of exporters have accessed support from government

organisations, there is demand for a range of support services and those that have used

support report that they were satisfied with the services on offer. It would appear that

choice is important along with a range of service offerings, and these factors should be

borne in mind when developing interventions.

There is a significant group of businesses that are considering exporting, totalling around

1,200 firms.

Interest tends to be highly rational and strategically driven. The levels of motivation

among such firms are therefore high.

Demand for support is high, while awareness of support organisations and use of the

Exporting is Great website are low. There is work to be done to link up interested non-

exporters with the support and information available.

Information-based support is in demand among such firms. The support system should be well placed to deliver such support (and other services) and it appears that better

use could be made of existing resources and assets in order to maximise the impact of

such services. This is especially important given the expressed preference for some

support and information to be delivered through the internet, online communication or

other remote mechanisms.

Introduction

Page 5

2. Introduction

This report presents the key findings of research which examines the extent of exporting

currently taking place across the Midlands Engine area and its ten constituent Local Enterprise

Partnerships (LEPs). It sets out the reasons why firms export and provides an overview of the

factors and barriers contributing to, or preventing, local businesses’ ability to export. It also

identifies the types of support that exporting firms, and those that would like to export, find

most useful. Finally, the study comments on the contribution that the Midlands Engine can

make to meeting national exporting targets.

The research was undertaken by Qa Research in partnership with Ortus Economic Research.

2.1 Background

International trade has been identified by the UK Government as a key contributor to future

economic vitality. Goods and services are both traded internationally and although individual

businesses’ attitude to international trade are important, trade is also affected by prevailing

macroeconomic conditions; for example, the relative strength of Sterling can impact upon the

competitiveness of UK goods and services in overseas markets.

Historically, the UK Government has set various national targets based around increasing the

scale and value of exports from the UK. Most recently, Government set out an ambition to

raise the value of exports as a proportion of GDP from 30% to 35%1.

Provisional figures from the ONS Annual Business Survey suggests that between 2016 and

2017, the number of non-financial sector businesses involved in international trade increased.

The proportion of importers rose to 10.4% (from 9.8%) while the proportion of exporters

rose to 9.9% (from 9.4%). In 2017, more than half (56%) of foreign-owned businesses traded

internationally, compared with 14% of UK-owned businesses2.

Almost half of the UK’s exports go to the EU. UK trade with Europe and the rest of the

world, post Brexit, will depend on the outcome of complex negotiations. It is likely that UK

exports to the EU will become subject to the EU’s Common Customs Tariff. While trade

agreements are negotiated to replace that the UK accesses as a member of the EU, it is

possible that there will be a period of uncertainty relating to tariffs and international trade

whilst new trade agreements are struck.

Two important developments in relation to the impacts of any tariffs imposed by the EU are:

Manufacturing has fallen from over 20% of the EU economy in the mid-1990s to less

than 10% now. Given that tariffs apply only to goods, not services, a smaller proportion

of the UK economy would be subject to any tariffs than would have been in the past.

Europe has become less important to the UK. The share of UK goods destined for the EU has fallen from over 60%, when the euro-zone was formed in 1999, to 45% as a

result of increasing trade with other countries3.

While the share of British exports going to the EU has been declining, it remains the UK’s

main export market. Continuing trade is likely to require the UK to negotiate a whole series

of new arrangements, from tariffs to customs checks and mutual recognition of product

standards4.

1 Department for International Trade (2018) Export Strategy: supporting and connecting businesses to grow on the world stage 2 ONS (2018) Annual Business Survey importers and exporters 3 ONS (2018), UK Balance of Payments 4 Financial Times (2016).

Introduction

Page 6

2.1.1 Support for business

Established in 2011 by the Coalition Government, LEPs have become the principal means for

delivering government support to business at the local level. As such, they are key partners

in the drive for growth, particularly through international trade.

The Department for International Trade (DIT) is responsible for promoting UK trade across

the world and attracting foreign investment. DIT negotiates international trade policy,

supports business and delivers an outward-looking trade diplomacy strategy. DIT maintains

close working relationships with LEPs.

The Midlands Engine represents one of the two key efforts by government (along with the

Northern Powerhouse) to encourage economic growth through devolution. The area

covered by the Midlands Engine stretches from Wales to the North Sea and the northern

Home Counties to the Peak District. It covers ten Local Enterprise Partnerships 5 . The

economy of the Midlands Engine is significant, contributing £222bn in GVA or 15% of the UK’s

total. It is home to a raft of major businesses that are active exporters, including global brands

such as Rolls Royce, Jaguar Land Rover and JCB. The region accounted for 16% of the UK’s

overall exports in 2013, selling to over 178 countries worldwide. Exports increased by 38%

between 2010 and 20136.

2.1.2 LEPs and their boundaries

The ten LEPs operating across the Midlands Engine are:

1. Black Country Local Enterprise Partnership (BCLEP)

2. Coventry and Warwickshire Local Enterprise Partnership (CWLEP)

3. Derby, Derbyshire, Nottingham and Nottinghamshire Local Enterprise Partnership

(D2N2)

4. Greater Lincolnshire Local Enterprise Partnership (GLLEP)

5. Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP)

6. Leicester and Leicestershire Local Enterprise Partnership (LLEP) 7. Marches Local Enterprise Partnership (MLEP)

8. South East Midlands Local Enterprise Partnership (SEMLEP)

9. Stoke-on-Trent and Staffordshire Local Enterprise Partnership (SSLEP)

10. Worcestershire Local Enterprise Partnership (WLEP)

5 Originally it was 11, but this reduced to 10 once Northamptonshire LEP closed and its responsibilities transferred to SEMLEP. 6 BIS (2016), The Midlands Engine Prospectus.

Introduction

Page 7

The geographical location of these LEPs is shown in Figure 1, below.

Figure 1: Map of Midlands Engine LEPs

Source: Ortus Economic Research, 2016

There are overlapping areas between Greater Birmingham and Solihull LEP and

Worcestershire LEP, and between Greater Birmingham and Solihull LEP and Stoke-on-Trent

and Staffordshire LEP, shown crosshatched in blue. These have been accounted for in the

methodology, described below.

2.2 Aims and objectives

Within the changing context of the UK’s trading position, the development of an industrial

strategy and the central role of LEPs in delivering a devolved approach to economic

development, EMB and DIT have sought to understand better the state of export/international

trade within the region. The aim is to ensure both policy and delivery of support services are

informed by robust, up-to-date evidence.

More specifically, the three main aims of the research are to:

Update key baseline data delivered in earlier studies regarding exporting at the spatial

level of Local Enterprise Partnerships across the geography of the Midlands Engine.

Evaluate the importance of international trade.

Increase understanding of the profile of exporting businesses and their key markets to

guide and direct support aimed at increasing trade.

This research project has been configured to deliver:

Introduction

Page 8

An outline assessment of the levels of exporting currently taking place in each Midlands

Engine LEP area, including numbers of exporting companies and values of exports by

sector and company size.

An outline assessment of which sectors, products and services contribute most to the level of exports from each LEP area, and which are the main overseas markets that each

LEP area exports to.

An overview of the barriers and factors contributing to, or preventing, an organisation’s

ability to export and an outline of the scale of businesses, by size and sector, which have

the potential to export but currently are not trading internationally.

A review of the support channels that are currently utilised by businesses and their

receptiveness to using digital resources for support.

A methodology that will enable EMB and DIT to continue to assess and regularly review

the levels of actual and potential exporting (both numbers of companies and value)

required in each LEP to contribute to national targets.

2.3 Methodology

The study is founded on a major survey, undertaken by telephone with firms with five or more

employees. The target business population was limited for two practical reasons:

1. The results of similar work carried out previously indicate that firms with fewer than

five employees are very unlikely to export.

2. The business population, in terms of firm numbers, is overwhelmingly dominated by sole

traders, partnerships and micro-firms. By including these businesses, a representative

sample would include relatively few larger companies, which in turn would mean that

the sample of actual exporters would be very small.

The questionnaire was designed in conjunction with the client and follows on from the

previous survey conducted in 2017, employing a large number of common questions. A copy

of the final questionnaire can be found in the Appendix (page 65).

The 2019 survey delivered 1,798 responses across the Midlands Engine area, with a minimum

of 175 in each LEP. This included accounting for the areas of overlap between GBSLEP and

WLEP and between GBSLEP and SSLEP; respondents in the overlapping areas contributed to

the data and analysis for both LEPs in which they are located, but are only counted once in

analysis covering the Midlands Engine as a whole.

The survey investigated the full business population of firms employing 5 or more people

within the ten LEPs to understand the overall levels of exporting across the region and in

each LEP area. Sample sizes for the survey are shown in Table 1 below.

Introduction

Page 9

Table 1: Respondents to the survey

LEP area Sample size Weighted

sample

Percentage of

respondents (weighted)

Black Country 182 7,560 8%

Coventry and Warwickshire 176 6,699 7%

Derby, Derbyshire, Nottingham &

Nottinghamshire (D2N2)

185 14,905 16%

Greater Birmingham and Solihull 297 16,900 18%

Greater Lincolnshire 181 8,185 9%

Leicester and Leicestershire 176 8,390 9%

South East Midlands (SEMLEP) 180 15,940 17%

Stoke-on-Trent and Staffordshire 208 8,180 9%

The Marches 175 6,220 7%

Worcestershire 211 7,535 8%

Total 1,798 92,280 100%

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019

The survey findings were weighted to represent the overall business population in the

Midlands Engine area. Weighting is used to adjust the proportion of respondents in the sample

to match more closely the proportion in the target population. It uses a mathematical

algorithm to weight the specified characteristics simultaneously to minimise the disturbance

to each variable. Two weighting factors were calculated: one for analysis relating to the overall

business population, and one for analysis by LEP.

The survey split firms into three groups – those that export, those that do not but are looking

to start exporting (termed ‘interested non-exporters’), and those that do not export and

expressed that they had no plans to do so (termed ‘uninterested non-exporters’). The survey

contained questions targeted at each of these three groups.

Analysis was designed to enable comparisons to be made between the 2019 survey and the

previous survey, conducted in 2017 and in some cases, responses (especially ‘other’

responses, reported verbatim) have been re-coded in order to facilitate these comparisons.

However, care should be taken when interpreting the results, and especially when comparing

the two surveys. While the survey sample is designed to be representative at LEP level, by

sector and size-band, the results are susceptible to variability in terms of their coverage of

exporters and non-exporters within each LEP, sector and size-band (a sample large enough

to avoid this variability is impractical, not least in terms of achieving the required response

rates). The 2017 survey is similarly susceptible to this sampling variability.

Limited comparisons between surveys are made in this report, and only where it is possible

to do so. Comparisons between the two surveys which are based on small numbers of

respondents are not shown. The reader is cautioned against relying on any findings based on

small sample sizes.

The results of the survey are presented showing the confidence interval associated with each

estimate. Confidence intervals are calculated at the 95% level, and imply that if the survey was repeated, we can be 95% certain that the proportion of respondents giving a particular answer

will lie within the confidence interval shown. Confidence intervals are represented in charts

by a small vertical line.

This report draws together the key findings and messages for ongoing policy from the survey.

Findings - Exporting in the Midlands Engine

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3. Findings - Exporting in the Midlands Engine

This chapter presents the key findings of the study into exporting in the Midlands Engine area.

It is split into three sections. The first covers levels of exporting across the Midlands Engine

economy and presents some detailed analysis of the characteristics and perspectives of

exporting firms. The second investigates those firms that do not export but have indicated an

interest in or are looking to start exporting (termed ‘interested non-exporters). The third

section examines those firms that are not currently exporting and have indicated they are not

interested in or looking to start exporting (termed ‘uninterested non-exporters’).

Comparisons with the previous survey are made wherever appropriate.

The Appendix provides additional analysis in support of the findings presented in this chapter.

3.1 Exporters in the Midlands Engine

This first section examines exporting levels across the Midlands Engine and the characteristics

and perspectives of exporting firms.

Figure 2 shows that in 2019, an estimated 16% of firms employing five or more people were

engaged in exporting. This is slightly above the level suggested by the Midlands Engine in 2017

(15%). It is possible that this difference is due to sampling variability between the two surveys.

The survey also indicated that only a small number of non-exporters (an estimated 1% of firms

employing five or more people) are interested in or looking to start selling to customers

outside the UK. This is lower than the equivalent estimate in 2017 (3%), suggesting that

increasing the number and proportion of firms involved in exporting activities in future years

may be challenging, though again It is possible that this difference is due to sampling variability

between the two surveys

Figure 2: Exporting levels across the Midlands Engine

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019. Unweighted base = 1,887 / 1,798


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Charts in this report show the proportion of respondents giving a particular answer to the survey (the thick bars) along with the confidence interval associated with this point estimate

(the thin vertical lines). Confidence intervals are calculated at the 95% level, and imply that if

the survey was repeated, we can be 95% certain that the proportion of respondents giving

the same answer will lie within the range shown by the line representing the confidence

interval.

An analysis of non-exporters – including those that are looking to commence exporting – is

presented in section 3.2.

Figure 3 shows exporting rates across the sectors by which the economy has been divided

for the purposes of this study. It shows that there is a wide range of exporting rates across

sectors, ranging from an estimated 25% of firms in the Production sector (which includes

agriculture, mining, utilities, manufacturing and construction) to 5% of firms in the Finance

sector.

In most sectors, the proportion of firms which sell to customers outside the UK appears to

have increased since 2017. The greatest apparent increase was in the Production sector (6

percentage points), followed by the Accommodation sector (5 percentage points). The

proportion of firms which export appeared to fall in the Information & Communication sector

(by 5 percentage points) and the Arts, Recreation & Other sector (by 3 percentage points).

However, results should be treated with caution due to sampling variability between the two

surveys.

Figure 3: Exporting levels across the Midlands Engine – % of firms that export by

sector


Figure 4 below compares exporting rates across the ten LEP areas in the Midlands Engine.

The proportion of firms which export varies, from an estimated 19% of firms in D2N2 to 13%

in Greater Birmingham & Solihull LEP. This variation is likely to reflect differences in the

sectoral mix between each LEP area’s economy.


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The proportion of firms which export appears to have risen in most LEP areas in the Midlands

Engine since 2017, with the greatest apparent increase in Greater Lincolnshire LEP (8

percentage points). In contrast, the proportion of firms which export appeared unchanged in

SEMLEP while appearing to fall slightly in Stoke-on-Trent & Staffordshire LEP and Greater

Birmingham & Solihull LEP (both by –2 percentage points). Again, results should be treated

with caution due to sampling variability between the two surveys. As the confidence intervals

show, differences between LEPs and between years could be much smaller than the surveys

suggest.

Figure 4: Exporting levels across the Midlands Engine – % of firms that export by LEP area


Figure 5 shows exporting rates by employment size band. As may be expected, exporting

rates appear to increase with firm size, with an estimated 15% of firms with 5–19 employees

selling to customers outside the UK, rising to 33% of firms with 100 or more employees.

Exporting rates appear to have increased in all size bands since 2017, with the greatest

apparent increase among firms with 100 or more employees (10 percentage points), though

comparisons between the two surveys should be made with caution due to sampling

variability. In particular, relatively large confidence intervals are associated with the 50–99

and 100+ size bands, partly due to the number of respondents in these categories

(confidence intervals are also larger for point estimates closer to 50%, and smaller for point

estimates closer to 0% or 100%).


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Figure 5: Exporting levels across the Midlands Engine – % of firms that export by

size band


Exporting rates among foreign-owned firms appear much higher (an estimated 48%) than

among firms with a UK parent company or independent firms (15%), as shown in Figure 6.

The proportion of firms which sell to customers outside the UK appears to have increased in

both groups since 2017, with the largest apparent increase among foreign-owned firms (12

percentage points). This difference may be attributable to sampling variability between the

two surveys.

Figure 6: Exporting levels across the Midlands Engine – % of firms that export by ownership



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Figure 7 shows exporting rates by turnover. Firms with a turnover between £5m and £49m

appear most likely to export, followed by firms with a turnover of £50m or more. Around

one in every five firms with a turnover between £500,000 and £4.9m, and around one in every

ten firms with a turnover below £500,000, are believed to sell their goods and services

overseas.

Figure 7: Exporting levels across the Midlands Engine – % of firms that export by turnover

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019. Unweighted base = 1,798

3.1.1 Indicative numbers of firms

Weighting the survey data to reflect actual characteristics of firms allows the survey proportions to be grossed up to provide estimates of the number of firms with five or more

employees that are engaged in exporting. While it is possible to provide a single estimate,

indicative numbers of firms are presented as ranges to reflect the confidence interval

associated with any estimate.

Overall the survey suggests that between 14,670 and 15,180 firms (employing five or more

people) across the Midlands Engine currently export, up from an estimated 11,740–12,120

firms in 2017. While the survey suggests an increase in the proportion of firms that export,

among an increase in the overall number of firms employing five or more people, it is likely

that our estimate of the number of exporting firms is affected by sampling variability (and its

relationship to weighting). For example, the survey suggests a higher rate of exporting among

the largest firms 2019 than in 2017, and these also account for a larger proportion of

exporters in 2019 than 2017. At the same time, fewer large firms were surveyed in 2019 than

in the previous survey, representing a smaller proportion of the population. This means that

the average weighting factor applied to the largest firms in 2019 is larger than in the 2017

sample, which may inflate the 2019 estimate of the number of exporters relative to the 2017

estimate. This variability affects all estimates, and care should be taken when comparing the

two surveys.

Table 2 shows indicative numbers of exporting firms for the ten LEPs within the Midlands

Engine. Table 3 then presents indicative numbers by sector while Table 4 sets out indicative

numbers by employment size band. Table 5 shows indicative numbers of exporting firms by

ownership, while Table 6 shows indicative numbers by turnover.


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Table 2: Indicative numbers of exporters across the Midlands Engine, by LEP area

LEP area Indicative number of firms (rounded)

2017 2019

D2N2 2,280–2,520 2,710–3,030

South East Midlands 2,510–2,810 2,580–2,880

Greater Birmingham and Solihull 1,800–1,950 2,060–2,220

Leicester and Leicestershire 1,160–1,280 1,420–1,590

Black Country 1,070–1,190 1,340–1,510

Greater Lincolnshire 710–770 1,250–1,390

Coventry and Warwickshire 940–1,040 1,050–1,170

Stoke-on-Trent and Staffordshire 1,130–1,240 1,030–1,130

Worcestershire 580–640 980–1,070

The Marches 820–900 950–1,060

Total 11,740–12,120 14,670–15,180

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019.

Unweighted base = 1,888 / 1,798. Note that LEP figures do not sum to the total due to spatial overlaps between GBSLEP and WLEP and between GBSLEP and SSLEP.

Table 3: Indicative numbers of exporters across the Midlands Engine, by sector

Sector Indicative number of firms (rounded)

2017 2019

Production 4,500–4,780 5,760–6,220

Wholesale, Retail & Logistics 3,380–3,600 4,090–4,380

Professional, Scientific, Technical 1,090–1,220 1,390–1,550

Information & Communication 530–640 430–510

Real Estate & Administrative 810–890 1,080–1,190

Arts, Recreation & Other 830–910 620–660

Accommodation 320–330 900–970

Finance 10–20 50–60

Total 11,740–12,120 14,670–15,180

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019. Unweighted base = 1,888 / 1/798

Table 4: Indicative numbers of exporters across the Midlands Engine, by size band

Number of employees Indicative number of firms (rounded)

2017 2019

5 to 19 8,660–8,980 10,830–11,270

20 to 49 1,680–1,830 1,960–2,110

50 to 99 640–720 740–870

100 plus 630–740 920–1,160

Total 11,740–12,120 14,670–15,180



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Table 5: Indicative numbers of exporters across the Midlands Engine, by

ownership

Ownership Indicative number of firms (rounded)

2017 2019

UK owned / Independent 11,090–11,430 13,640–14,110

Foreign owned 590–760 890–1,210

Total 11,740–12,120 14,670–15,180


Table 6: Indicative numbers of exporters across the Midlands Engine, by turnover

Turnover Indicative number of firms (rounded)

£0-£499,000 2,610–2,770

£500,000-£4.9m 7,080–7,530

£5m-£49m 2,210–2,580

£50m+ 300–430

Refused 2,120–2,220

Total 14,670–15,180

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019. Unweighted base = 1/798. Note that data are weighted to be representative of the population in terms of sector, size band and geography, not by turnover.

3.1.2 Detailed analysis of exporters

Having established the level of exporting across the Midlands Engine, this section of the report

now examines exporters in more detail, looking at export markets, the proportion of

turnover generated by exports, reasons for exporting and whether exporters would consider

themselves ‘regular’ exporters.

Export markets

Figure 8 shows the top 20 export markets for exporting firms in the Midlands Engine. The

most common market for exported goods and services from the Midlands Engine was France

(an estimated 27% of exporters), closely followed by Germany (26%). The third most common

export market was the USA (25%). Of the top 20 export markets for exporting firms, 11 are

EU member states. Trade negotiations relating to Brexit appear particularly likely to influence

exports to these countries, as well as to other countries worldwide.


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Figure 8: Top 20 export markets – by % of exporters trading with each market

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019. Unweighted base = 285 / 298

Reasons for exporting

Exporters were asked what their drivers for exporting were, through a question which asked

respondents to identify why they export. The results are presented in Figure 9 below, which shows that the most common reason for exporting is that the company has a number of

customers located overseas (an estimated 33% of exporters). The second most common

response (an estimated 18% of exporters) is that exporters only react as opportunities to sell

internationally arise, for example in response to a specific request from an international

customer. Similar proportions of exporters reported that exporting is integral to their

business, or that their core markets are overseas. Smaller proportions suggested that

exporting was linked to business development and growth, leading to for example a wider

customer base, increased profitability or turnover.


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Figure 9: Why export? Reasons for exporting by % of exporters citing reason

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019. Unweighted base = 285 / 298. Note that ‘other’ responses have been recoded where appropriate.

Regular exporters

Firms that sell goods or services overseas were asked whether they would consider

themselves to be a ‘regular’ exporter. This was defined as where exports were an important

element of sales that were anticipated in the firm’s business model, and/or the firm was active

in generating more business from overseas customers.

Overall, an estimated 49% of exporting firms reported that they were a regular exporter.

As Figure 10 shows, the proportion of exporters who consider themselves regular

exporters varies by LEP area. Comparisons between LEPs (and between surveys) should be

treated with caution, however, due to the relatively low number of exporters surveyed in

each LEP and the possibility that results are affected by sampling variability.


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Figure 10: Regular exporters – % of firms describing themselves as

‘regular’ exporters, by LEP area

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019. Unweighted base = 298. Data should be interpreted as indicative only due to small sample sizes at LEP level.

Value of exporting

Figure 11 shows that most exporters most generate a relatively small proportion of their turnover from exports. An estimated one in five exporters, nevertheless, reported that more

than 50% of their turnover came from exports in 2019.

Figure 11: Proportion of turnover from exports – % of exporters

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019. Unweighted base = 298.


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Duration of exporting

Exporters were also asked how long their firm had been exporting. Figure 12 shows that an

estimated 71% of exporters have sold to overseas customers for more than 10 years, while

around an estimated 15% have been exporting for between 5 and 10 years.

Figure 12: Duration of exporting – % of firms exporting by time period

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019. Unweighted base = 285 / 298

Obstacles to exporting

The survey asked exporters whether they experienced any obstacles to exporting when

their firm first started to sell goods and services to overseas customers. Overall, around

one in four exporters (an estimated 24%) confirmed that they had faced obstacles. Figure 13

shows that the proportion of exporters experiencing obstacles varies by LEP, though results

at this level should be treated with caution due to the low number of exporters surveyed in

each LEP.


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Figure 13: Obstacles to exporting – % of firms experiencing obstacles by LEP area


As Figure 14 shows, the most commonly experienced obstacle was tackling local regulations

and standards. Other commonly experienced obstacles included supply chain and/or logistics

issues and paperwork. However, exporters clearly face a wide range of obstacles, with ‘other’

obstacles also commonly reported, despite recoding of many of these responses during

analysis. Other obstacles mentioned by respondents include costs, cultural differences and

concerns about intellectual property theft.

Figure 14: Nature of obstacles faced – % of exporters experiencing specific obstacles

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019. Unweighted base = 74. Data should be interpreted as indicative only due to small sample size. Note that ‘other’ responses are recoded where appropriate.


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Exporters have adopted a range of mechanisms to overcome these obstacles. As shown in

Figure 15, most commonly reported are a diverse range of ‘other’ actions (despite recoding

of ‘other’ responses during analysis), including the use of social media, recruitment of foreign

language speakers, and changing working patterns to account for international time

differences.

Perhaps encouragingly, around one in five exporters (an estimated 18%) who reported facing

obstacles when they began exporting said they overcame these obstacles with the support of

government organisations; a further one in ten said that they had received support from the

local Chamber of Commerce. This suggests that some firms, at least, can access effective

support (including through membership of the Chamber of Commerce), but also raises the

question of why more firms do not do so. Many responses suggest that exporters overcame

the obstacles they faced when starting out without external support (through the

determination of management and staff, and their increased experience over time, for

example, or by proactively seeking new international customers) or with less formal support

(through personal networks, for example, or with the support of the agents or couriers they

worked with). A small number of exporters who faced obstacles when starting out said they

had done nothing to overcome these obstacles, and barriers remained.

Figure 15: Overcoming challenges – % of exporters overcoming challenges through specific mechanisms

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019. Unweighted base = 74. Data should be interpreted as indicative only due to small sample size.

Ambitions to increase exports

Two thirds of exporters (an estimated 66%) have the ambition to increase the level of exports

that their firm achieves. As Figure 16 shows, the proportion of exporters with an ambition

for increased exports varies by LEP area, though comparisons between LEPs should be treated

with caution due to the relatively low number of exporters surveyed in each LEP and the

possibility that results are affected by sampling variability.


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Figure 16: Ambition to increase exports – % of exporters with ambition to

increase exports, overall and by LEP area


Figure 17 shows the barriers to increased exporting reported by exporters who said they had

an ambition to increase the level of exports that their firm achieves. The most common barrier identified was cost, identified by an estimated 15% of exporters with the ambition to

increase their exports. A similar proportion, on the other hand, reported that there were no

barriers.

Economic uncertainty, and Brexit in particular, appears to be a growing concern among

exporters with the ambition to increase their exports, though it is difficult to draw firm

conclusions about changes over time due to sampling variability. Exporters with the ambition

to increase their exports also cited a diverse range of other barriers (despite ‘other’ responses

being re-coded during analysis), including lack of capacity, resources or staff, limited overseas

demand and difficulties accessing new markets.


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Figure 17: Top 10 barriers to increased exporting – % of exporters with ambition

to increase exporting

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019. Unweighted base = 196 / 198. Note that ‘other’ responses are recoded where appropriate.

Support for exporting

One in three exporters (an estimated 33%) had sought support for their exporting activities.

As shown in Figure 18, the proportion of exporters seeking support varies by LEP area, though

comparisons between LEPs should be treated with caution due to the relatively low number

of exporters surveyed in each LEP and the possibility that results are affected by sampling

variability.

Figure 18: Support for exporting – % of exporters who have sought support, overall and by LEP area



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Figure 19 shows the type of support received by exporters. The most important areas for

support were access to funding and seminars/workshops and information on the key aspects

of exporting. Exporters also reported accessing a diverse range of other support, including

support with various aspects of paperwork, and support from the customers they export to.

Figure 19: Nature of support for exporting – % of exporters who have accessed support


Exporters received support from a range of organisations, as shown in Figure 20. The two

top sources of support were Chambers of Commerce (37%) and government organisations

including the Department for International Trade (DIT, at 35%). Chambers of Commerce

were cited as a source of support more frequently in the West Midlands than in the East

Midlands which may possibly be linked to the fact that Chambers in the West Midlands

employ DIT’s International Trade Advisers in addition to offering a range of other essential

export related services including export documentation, training and logistics advice.


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Figure 20: Organisations providing export support – % of exporters who sought

support


Exporters are generally satisfied with the support they have received. As Figure 21 shows, an

estimated 81% of exporters receiving support said they were satisfied or very satisfied. Very

few reported being dissatisfied or very dissatisfied with the support they received.

Figure 21: Satisfaction with support received – % of exporters who received support


The survey asked all exporters – whether they had received support in the past or not – if

they would like to receive support in the future. An estimated 27% are seeking future support.

Demand for further support varies by LEP, as shown in Figure 22, though comparisons

between LEPs should be treated with caution due to the relatively low number of exporters

surveyed in each LEP and the possibility that results are affected by sampling variability.


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Figure 22: Desire for future exporting support by LEP – % of exporters


Figure 23 shows that there is a desire for future support to be delivered across a number of

formats, though there is a clear preference for online and digital resources and information.

Figure 23: Exporting support format preferences – % of exporters seeking future support


While there is a strong demand for online and digital resources to support exporting, only

around one in ten exporters (an estimated 12%) reported that they have used the Exporting

is Great website. As shown in Figure 24, the proportion of exporters who have used the

website varies by LEP, though comparisons between LEPs should be treated with caution due

to the relatively low number of exporters surveyed in each LEP and the possibility that results

are affected by sampling variability.


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Figure 24: Access to Exporting is Great website – % of exporters


The primary use of the Exporting is Great website was to access information on exporting (an

estimated 61% of users). Only a small proportion of users accessed the site to access overseas

e-marketplaces or download export opportunities. Users reported a range of other uses,

mainly related to researching new markets and networking with other exporters.

3.2 Non-exporters in the Midlands Regions

An estimated 84% of firms in the Midlands Engine do not currently export goods or services

to overseas customers. These firms can be grouped into those that are looking to start

exporting (interested non-exporters) and those that are not (uninterested non-exporters).

The following sections examine the characteristics and perspectives of each group.

3.2.1 Interested non-exporters

One aim of this research is to understand the level of interest in exporting among non-

exporters, as well as the characteristics of firms looking to start exporting and the issues

associated with commencement of exporting activities. This section presents an analysis of

these firms, termed ‘interested non-exporters’.

We saw earlier (see section 3.1) that an estimated 1% of all firms employing five or more in

the Midlands Engine were defined as ‘interested non-exporters’. This translates to an

estimated 2% of all non-exporters.

The proportion of non-exporters who are interested in exporting varies by LEP, as shown in

Figure 25. No non-exporters in Coventry & Warwickshire or Worcestershire said they were

interested in exporting in 2019. Comparisons between LEPs (and between surveys) should be

treated with caution, however, due to the possibility that results are affected by sampling

variability.


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Figure 25: Interest in exporting among non-exporters – % of non-exporters by

LEP area

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019. Unweighted base = 1,500.

As Figure 26 shows, non-exporting firms in the Information & Communication sector show

the greatest interest in starting to export. Interest is lowest in the Arts, Recreation & Other

sector and Accommodation sector.

Figure 26: Interest in exporting – % of non-exporters interested in exporting, by sector


No non-exporters with between 50 and 99 employees reported being interested in starting

to export in 2019, as shown in Figure 27. Non-exporters with between 20 and 49 employees

or 100 or more employees appear slightly more likely to express an interest in starting to

export than those with between 5 and 19 employees.


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Figure 27: Interest in exporting – % of non-exporters interested in exporting, by

size band


Indicative numbers of firms interested in exporting

In a similar vein to the analysis presented in section 3.1.1, the survey data has been used to estimate the total number of interested non-exporters across the Midlands Engine. Overall,

the survey suggests that there are around 1,200 interested non-exporters across the Midlands

Engine.

Sampling variability means that it is difficult to provide reliable estimates of the number of

interested non-exporters by LEP or by sector.

Reasons for interest in exporting

Interested non-exporters were asked about the drivers of their interest in exporting. The

most important drivers mentioned are to generate increased profitability, and to generate

increased turnover. Faster business growth and access to more customers were also reasons

for firms’ interest in exporting. Some non-exporters said that exporting was part of their

overall growth strategy, and others said they were aware of potential customers overseas.

Potential Markets

Interested non-exporters most commonly identify Europe as a potential market. They are

also more likely to suggest ‘any’ overseas country as a potential market than to identify specific

territories, perhaps implying that interest in exporting is often not yet reflected in more

formal plans. It is difficult to draw firm conclusions in this regard, however, as analysis is based

on a small number of respondents.

Factors preventing exporting

Interested non-exporters were asked to identify the factors which were currently preventing

them from exporting their goods and services to overseas customers. Respondents cited a

diverse range of reasons, such as uncertainty caused by Brexit, the lack of a formal exporting

strategy within the business, and lack of support from government agencies including LEPs.

Difficulties finding overseas customers, lack of market knowledge and simply not knowing


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how to start were also factors preventing exporting. A small number of interested non-

exporters said their previous attempts to start exporting had been unsuccessful.

Factors that would encourage exporting

The factors that interested non-exporters say would encourage them to export are varied.

Some interested non-exporters wanted information on getting started. Others wanted

increased funding and support, or greater access to overseas distributors and partners. Some

thought attendance on trade missions would be helpful, while others wanted to be able to

attend seminars or workshops on the key aspects of exporting. A number of interested non-

exporters expressed a desire for clarity relating to Brexit and the UK’s future trading

arrangements with other nations.

Support for interested non-exporters

Overall, around half of interested non-exporters (an estimated 49%) were already aware of

the existing support channels for exporters. Around two thirds (an estimated 67%) said they

would be interested in accessing support. Interested non-exporters were most commonly

interested in accessing one-to-one guidance, mentoring and support, either face-to-face,

online or by telephone. Online and digital information and resources were also commonly

cited.

Relatively few interested non-exporters (an estimated 16%) had used the Exporting is Great

website. Those that had used the website indicated that the primary purpose of their visits

were to download export opportunities, to access overseas e-marketplaces and to research

specific overseas markets.

3.2.2 Uninterested non-exporters

Overall, an estimated 83% of firms (with five or more employees) in the Midlands Engine do

not currently export their goods or services to overseas customers. A large proportion of

these firms also confirmed that they had no interest in exporting at this time. This section

examines this group of firms, termed ‘uninterested non-exporters’. Figure 28 shows that the proportion of firms that neither export nor have an interest in exporting (the ‘uninterested

non-exporters’) varies only marginally by LEP, with Worcestershire, Stoke-on-Trent &

Staffordshire and Greater Birmingham & Solihull LEPs containing the highest proportion of

uninterested non-exporters (an estimated 86% of firms employing five or more people) and

Black Country, Leicester & Leicestershire and The Marches LEPs the lowest (an estimated

79%).


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Figure 28: Exporting activities and interest in exporting – % of all firms by LEP,

2019

Exporters Interested non-exporters Uninterested non-exporters

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019. Unweighted base = 1,798.


Page 33

Uninterested non-exporters were asked to identify the reasons that they were not seeking

to export goods and services to overseas clients. As shown in Figure 29, the most commonly

cited reason for a lack of interest, mentioned by around two thirds (an estimated 65%) of

uninterested non-exporters, is that exporting is not relevant to the firm’s products or

services. This was especially true in the Accommodation and Arts, Recreation & Other

sectors. Around a quarter of uninterested non-exporters (an estimated 23%), meanwhile, said

they were busy enough with demand from UK customers, while a slightly smaller proportion

cited a range of ‘other’ reasons including costs, financial risks, and commonly, the small size

of the firm.

Figure 29: Reasons for not seeking to start exporting – % of business that are not interested in exporting

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019. Unweighted base = 1,549 / 1,475.

3.3 Contribution to national targets

The Government has set out an ambition to raise the value of exports as a proportion of

GDP from 30% to 35%7 . It is beyond the scope of the current research to assess the contribution of the Midlands Engine to this target. Nevertheless, the research provides an

outline of the number of firms, by size and sector, which have the potential to export but

which do not currently trade internationally. This section considers the challenge of raising

the value of exports by increasing the proportion of firms which sells their goods and services

overseas8.

Currently, an estimated 16% of Midlands Engine firms that employ five or more people are

engaged in exporting, amounting to around 16,150 firms in total when these data are grossed

up to estimate activity in the population as a whole. Raising this proportion beyond the

estimated 1% of firms which do not currently export but express an interest in doing so is

clearly a significant challenge, but the survey provides data that allows non-exporters to be

segmented and this is useful to consider when planning initiatives to achieve greater exporting

levels.

7 Department for International Trade (2018) Export Strategy: supporting and connecting businesses to grow on the world stage 8 An earlier Government target was to increase the proportion of firms which export to 25%.


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Table 7 presents calculations and estimates relating to increasing the proportion of exporters

in each sector. The first section of the table sets out the current position, where an estimated

16% of firms are exporting (Export Rate 1) totalling approximately 14,930 firms across the

Midlands Engine (Export Total 1). By comparing the number of exporters to the total

population of firms employing five or more people, it identifies the ‘target field’ – i.e. the

number of firms that may export in the future.

We know that a proportion of non-exporters are looking to export (the ‘interested non-

exporters’) and it is reasonable to assume that with the right guidance and support, identified

earlier in this report, many of these firms would begin exporting. Were a 100% conversion

to be achieved, the total number of exporters in the Midlands Engine area would increase to

approximately 16,140 (i.e. Export Total 2). This would increase the proportion of businesses

that export from an estimated 16% to 17% (Export Rate 2).

We also know from responses to the survey that for some firms, exporting is seen as

irrelevant or not achievable. We have grouped three answers together to create a rate for

each sector which represents the proportion of firms for which exporting should be seen as

irrelevant. These firms would be a challenge to persuade that exporting is right for them and

therefore should not be subject to support. The three responses grouped here are, from

Question 5 of the survey: ‘not relevant for our products and/or services’, ‘previous experience

puts us off’, and ‘overseas markets are too depressed’. The proportion of firms in this category

is identified in the row labelled ‘Exporting not relevant/achievable’ and this amounts to 66%

of the estimated target field across the Midlands Engine.

Firms identifying other reasons for not exporting are therefore seen as more promising

prospects. These total approximately 25,770 across the Midlands Engine area (i.e. the

Potential ‘Market’).

In order to achieve the proportional contribution to national targets, the conversion rates of

those firms in the market will clearly need to be relatively high. We have assumed that the rate is 25% across the piece, though we recognise that this is stretching. Using odds ratios

which are calculated from the survey results, we can see that some sectors represent better

prospects that others. The Moderated Conversion Rate takes these odds into account. This

conversion rate is then multiplied by the total market size to estimate the number of

‘Outcomes’ – i.e. additional new exporters – that would be achieved if these rates were

delivered. Odds ratios for sector, size and ownership status are provided in the Appendix.

The final section of the table brings the analysis together to give an estimate for the final total

number of exporting firms across the Midlands Engine (approximately 22,580 – Export Total

3) and the Exporting Rate that this translates to (24% – Export Rate 3).

Note that these estimates do not take account of the increased odds of larger firms exporting.

Foreign-owned firms that are currently not exporting may also have a role to play though it

is clearly more challenging to influence the growth strategy of large multinational companies

than of independent or UK-owned firms. These issues should be considered when developing

targeted initiatives.


Page 35

Table 7: Estimates of exporting growth

Sector

Pro

duct

ion

Whole

sale

, R

eta

il &

Logi

stic

s

Acc

om

modat

ion

Info

rmat

ion &

Com

munic

atio

n

Fin

ance

Real

Est

ate &

Adm

inis

trat

ive

Pro

fess

ional

, Sc

ientific,

Tech

nic

al

Art

s, R

ecr

eation &

Oth

er

Tota

l

Export Rate 1 (current) 25% 18% 8% 16% 5% 9% 17% 8% 16%

Export Total 1 5,990 4,230 1470 470 1140 640 930 60 14,930

Firm population (>5 emp) 24,405 24,075 11,505 2,890 1,100 12,055 8,630 7,670 92,340

Non-exporters (target field) 18,415 19,845 10,035 2,420 -40 11,415 7,700 7,610 77,410

Interested non-exporters 530 260 0 150 20 90 140 30 1,210

Export Total 2 6,520 4,490 1,470 620 1,160 730 1,070 90 16,140

Export Rate 2 27% 19% 13% 21% 105% 6% 12% 1% 17%

Exporting not relevant/achievable

52% 56% 89% 63% 77% 74% 67% 82% 66%

Potential ‘Market’ 8,530 8,570 1,190 850 220 2,850 2,320 1,240 25,770

Average conversion rate 25% 25% 25% 25% 25% 25% 25% 25% 25%

Odds Ratio 1.7 1.1 0.5 1.0 0.3 0.5 1.1 0.5 1

Moderated conversion rate 42% 28% 11% 25% 7% 13% 27% 12% 25%

Outcomes - new exporters 3,590 2,370 140 220 20 380 620 150 6,440

Export Total 3 10,110 6,860 1,610 840 1,180 1,110 1,690 240 22,580

Export Rate 3 41% 28% 14% 29% 107% 9% 20% 3% 24%

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019. All estimates are approximate.

In summary, it is clear that a significant challenge lies ahead, especially given the uncertainties

associated with Brexit and exchange rates. However, targeted support which is built on the

results of this survey and is developed to respond to the export development needs of

businesses that are most likely to export, will heighted then chances of the Midlands Engine

making an important contribution to the intended growth in exporting among UK businesses.

Conclusions

Page 36

4. Conclusions

This study has set out to explore the extent and nature of exporting across the Midlands

Engine and the ten LEPs within that make up the area. In addition, it reports on the challenges

that exporters and prospective exporters face along with the support that they consider most

useful.

The contents of the report are drawn from a single, large-scale survey of businesses, which

follows on from a similar study undertaken in 2017. The survey generated a representative

sample of 1,798 firm with five or more employees, operating across the ten LEP areas. The

survey sought to be representative in terms of firm size, broad sector and LEP geography and

was used specifically to establish the levels of exporting as well as to explore the motivations

and challenges faced by exporters. For non-exporters, the survey sought to understand the

number of prospective exporters (or ‘interested non-exporters’, as they have been termed),

their ambitions and the barriers holding them back. For ‘uninterested non-exporters’, the

survey sought to understand the reasons for the lack of plans to commence exporting.

4.1 Levels of exporting

An estimated 16% of firms employing five or more people currently export, while 1%

expressed an interest in doing so, and 83% are not looking to commence exporting. Taking

these figures into account, as well as the characteristics of exporters, the study estimates that

between 14,670 and 15,180 firms employing five or more people are currently exporting

within the Midlands Engine area.

Sector is highly correlated to export activity with businesses in Production engaging in the

highest levels of exporting, while those in Finance have the lowest rates of exporting. These

results are intuitive – firms producing goods and tradable (e.g. professional) services are more

likely to be serving global markets. Similarly, firms which are more likely to address local

market demand, such as for accommodation or real estate, are less likely to seek global clients.

Firm size is also strongly related to exporting. Firms with 100 or more employees appear

more than twice as likely to export than those with 5 to 19 staff.

Ownership is also a strong indicator of export activity. The survey estimates that almost half

(48%) of foreign-owned companies export compared to only 15% of UK-owned businesses.

Again, this is intuitive as foreign-owned businesses are already international, and overseas

investments are often explicitly designed (and are of a scale) to serve more than the home

market (i.e. a continent).

While there are differences in the levels of exporting across LEPs, geography itself is not seen

as a contributing factor. Instead, it is the nature of the firm population, in particular with

respect to the characteristics commented on above, that are the key determinants of export

rates.

We conclude from this study that:

The levels of exporting exhibited across the ten LEPs in the Midlands Engine area are in

line with what might be expected from the national data.

Most firms employ business models for which exporting is simply not appropriate.

Sector, firm size and ownership are the key determinants of whether a business will

export.

The focus for EMB, DIT and partners should be on engaging with those businesses that

demonstrate the characteristics of typical exporters.

Conclusions

Page 37

4.2 Nature of exporters

When asked why they export, the majority of exporters cite reasons that are self-evident:

‘we have a number of customers overseas’, ‘access to more customers’, ‘increased

profitability’ and ‘it’s integral to our business’ are key reasons, along with opportunism. This

confirms that exporting is a core activity for these businesses and the firms serving overseas

markets need to do so proficiently and productively, in order to contend with global

competition.

Furthermore, around half of exporting firms (an estimated 49%) consider themselves to be

regular exporters. This implies that around half are intermittent or occasional exporters.

These firms may require support for exporting to become a more important part of their

business activities.

4.2.1 Markets

In terms of existing markets, France, Germany and the USA are the most frequently cited

overseas markets. Of the Top 20 export markets, 11 are an EU member state. From this we

can conclude that clearly there is an important trading relationship with the EU and the

current uncertainties around the UK’s ongoing economic relationship with the EU following Brexit will be of critical importance. Depressed exchange rates will make exports more

competitive but imports more expensive, so firms will be hit differentially depending on their

trading relationships.

4.2.2 Value and duration of exporting

Around half of exporters derive less than 10% of turnover from exports, suggesting that the

importance of exporting to turnover is not significant for many exporters. On the other hand,

an estimated one in five exporters reported that more than 50% of their turnover came from

exports in 2019 and clearly for such businesses exporting is critical to their existence.

An estimated 71% have sold to overseas customers for more than 10 years and an estimated

15% have been exporting for between 5 and 10 years. These findings indicate that a small

minority of the exporting cohort are relatively new to exporting but that most exporting

firms are highly experienced and understand the requirements of their business to sustain

such activity.

4.2.3 Obstacles and Support

Around a quarter of exporters (an estimated 24%) indicated that they had experienced

obstacles to exporting. The key obstacles were local regulation and standards, supply chain

and/or logistics and paperwork. In order to overcome these challenges, exporters adopt a

range of techniques including: the use of social media, recruitment of foreign language

speakers, and changing working patterns to account for international time differences. Almost

one in five exporters who experienced difficulties said that they received support from

government organisations, offering encouragement that the support provided is effective and

accessible to those who need it.

When exporters have sought support for exporting, it has tended to be for access to funding

or to access information or workshops on the key aspects of exporting. Key organisations

delivering support include government organisations (e.g. DIT) and Chambers of Commerce.

Furthermore, satisfaction with support is high, with around four in five firms being satisfied or

very satisfied with the support received.

4.2.4 Future plans and barriers

Exporters are often ambitious to expand their export activities; around two-thirds (an

estimated 66%) would like to increase the level of exports that their firm achieves. However,

Conclusions

Page 38

they report a range of barriers to achieving this ambition including cost, lack of capacity,

resources or staff, limited overseas demand and difficulties accessing new markets. Economic

uncertainty in relation to Brexit and depressed exchange rates were also cited.

We may draw a number of conclusions from these results:

Markets in the EU are very important in that large numbers of exporters access them.

There are clearly two groups of exporters; those that see themselves as regular exporters (around half) and those who may be seen as occasional or opportunistic

exporters (around half).

For a large proportion of exporters, exports contribute a small percentage of turnover.

On the other hand, for a small but not insignificant proportion, exports are crucial to

the sustainability of their business.

A large majority of exporters have been selling goods and services overseas for some

years. These are clearly experienced traders that need to continually evolve their offer

and business in order to remain competitive in overseas markets.

Exporters utilise a range of support providers and these may reflect the type of

assistance being sought. Further research may help in making signposting more effective.

Although only around one in five exporters have used government support organisations, there is demand for a range of support services and those that have used

support organisations report that they are satisfied with the services on offer. It would

appear that choice is important as well as that a range of services are provided, and

these factors should be borne in mind when developing interventions.

4.3 Non exporters

Non-exporters fall into two categories – those that are looking to export (interested non-

exporters – an estimated 1% of all firms employing five or over) and those that are not

(uninterested non-exporters – an estimated 83% of all firms employing five or over).

4.3.1 Interested non-exporters

Based on the survey results, the study estimates that the overall number of interested non-

exporters in the Midlands Engine, employing five or more people, is around 1,200.

A desire for growth is the key driver for the interest in exporting. This is expressed in a

number of ways, including a desire for increased profitability or increased turnover. EU

markets dominate those which interested non-exporters are keen to access.

The study suggests that potential exporters see exporting as either an important, proactive

mechanism by which they can enhance their business or as a reactive, opportunistic activity.

From this we might surmise that the degree of motivation and extent to which exporting is a

strategic activity are key in determining whether a business becomes a committed and regular

exporter.

Interested non-exporters indicate that the barriers which prevent them from exporting can, in large part, be addressed. Other than uncertainty caused by Brexit, support and signposting

could be targeted at other key barriers, including support to develop formal exporting

strategies within these firms, and better signposting to support from government agencies.

The demand for support is relatively high among interested non-exporters. Around two thirds

(an estimated 67%) would be interested in receiving support. Around half of interested non-

exporters said they were aware of the support available, suggesting that there is latent demand

for export assistance, particularly ’information-based’ support. However, relatively few (an

estimated 16%) of interested non-exporters have used the Exporting is Great website,

suggesting that awareness of this particular resource is low.

Conclusions

Page 39

We draw the following conclusions from these findings:

There is a significant group of businesses that are considering exporting, totalling

approximately 1,200 firms.

Interest tends to be highly rational and is often strategically driven. The levels of motivation among such firms are therefore high.

Demand for support is high, while in comparison, awareness of support organisations

and in particular use of the Exporting is Great website are low. There is work to be done

to link up interested non-exporters with the support and information available.

Information-based support is in demand among interested non-exporters. The support

system should be well placed to deliver such support (and other services) but it appears

that better use could be made of existing resources and assets in order to maximise the

impact of such services. This is especially important given the expressed preference for

some support and information to be delivered through the internet, online

communication or other remote mechanisms.

Further research, which focuses on content and the most appropriate (digital) delivery

mechanisms, would be helpful in ensuring that interested non-exporters can access the

support available and gain the exact information that they require.


The overwhelming reason given for not exporting is that this is seen as not relevant to a firm’s

products and services. It is clear from this that the majority of non-exporters can be expected

to remain so. We may conclude therefore, that any effort expended in trying to help them

export would be wasted. A small number of firms indicate that they assess overseas market

demand to be too uncertain or that they have been put off by a previous exporting experience.

Firms providing these responses can be seen as those for which exporting is not at all relevant,

either because the nature of their product/services means that local markets are the only

ones of relevance, or they have rejected it based on some experience or knowledge.

Other firms, however, provide reasons for not exporting which suggest that, with support,

exporting may become a realistic possibility (e.g. not part of our business plan, there are

regulations or legal issues). The provision of case studies and other persuasive evidence that demonstrates that exporting is more relevant and achievable than some firms believe,

generated through further qualitative research, could be valuable in stimulating more

businesses to commence exporting activities.

4.3.3 Contribution to national targets

It is beyond the scope of the current research to assess the contribution of the Midlands

Engine to the Government’s ambition to raise the value of exports as a proportion of GDP

from 30% to 35%. Nevertheless, it is clear that this requires an increase in the number of

firms which export, as well as in the value of exports. This is a challenge, especially when there

are significant uncertainties about the UK’s long-term trading relationship with the EU and

other overseas markets.

Careful targeting coupled with the provision of effective, efficient support initiatives (provided

locally and nationally, such as the Exporting is Great website) are crucial to achieving. The

research suggests that if all interested non-exporters began exporting then the export rate in

the Midlands Engine would rise to an estimated 17% of all firms employing five or more.

An additional 6,440 exporters would be required to lift the exporting rate to 24% and, taking

into account the relative propensity of firms in difference sectors to undertake exporting, this

could be achieved through significant successes largely in the Production and Wholesale, Retail

& Logistics sectors, where the greatest opportunities lie.

Appendices

Page 40

5. Appendices

The Appendices provide additional data tables and charts to support the analysis in the main

body of the report.

Care should be taken when interpreting the data presented in the Appendices, and especially

when making comparisons between the two surveys. While the survey sample is designed to

be representative at LEP level, by sector and size-band, the results are susceptible to variability

in terms of their coverage of exporters and non-exporters within each LEP, sector and size-

band (a sample large enough to avoid this variability is impractical, not least in terms of

achieving the required response rates). In some cases, analysis is based on very small sample

sizes. The reader is cautioned against relying on any findings based on small sample sizes.

Data are presented showing the confidence interval (+/-) associated with each estimate.

Confidence intervals are calculated at the 95% level, and imply that if the survey was repeated,

we can be 95% certain that the proportion of respondents giving a particular answer will lie

within the confidence interval shown. Confidence intervals are represented in charts by a

small vertical line.

5.1 Midlands Engine, WMCA and LEP Data Sheets

The Midlands Engine data sheet presents all the key export indicators for the whole of the

Midlands Engine area. The WMCA data sheet presents analysis for the West Midlands

Combined Authority area (comprising Greater Birmingham & Solihull, Black Country and

Coventry & Warwickshire LEPs), while LEP Data Sheets present analysis at LEP level. The

estimates shown are based on various denominators, as shown in Table 8.

Table 8: Estimates and denominators in the LEP Data Sheets

Estimate Denominator

Exporting rate All firms

Exporters – other estimates Exporters

Key markets Exporters

Top 5 reasons to export Exporters

Value of exporting Exporters

Duration of exporting Exporters

Top 5 barriers to more exports Exporters facing barriers

Top 5 nature of support received Exporters receiving support

Top 5 sources of support Exporters receiving support

Interested non-exporters All non-exporters

Interested non-exporters interested in support Interested non-exporters

Uninterested non-exporters All non-exporters

Reasons for disinterest Uninterested non-exporters

Appendices

Page 41

5.1.1 Midlands Engine Data Sheet

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019

Unweighted base = 1,798. Exporter base (unweighted) = 298 firms ** Data should be interpreted as indicative only due to small sample sizes

Mid

lan

ds

En

gin

e

Mid

lan

ds

En

gin

e

% +/- % +/-

EXPORTERS Top 5 Barriers to more exports**

Exporting Rate 16 2 The cost 15 5 Indicative # of exporters in LEP 14,670–15,180 None 14 5

Regular exporters 49 6 Economic uncertainty / Brexit 13 5 Experiencing obstacles 24 5 Other 10 4 Ambition to grow exports 66 5 Customs procedures or paperwork 7 4

Sought support 33 5

Desire for future support 27 5 Top 5 Nature of support received**

Used Exporting is Great 12 4 Access to funding 20 8

Workshops/info on exporting 19 8

Key Markets** Other 14 7

France 27 5 Market research/intelligence 12 7

Germany 26 5 Intermediary to handle aspects 11 6

USA 25 5

Irish Republic 19 5 Top 5 Sources of support**

Worldwide 19 5 Chamber of Commerce 37 10

Spain 18 5 Government Organisation (inc. DIT) 35 10

Italy 15 4 Other 29 9

Netherlands 14 4 Private sector consultancy 11 6

Australia 12 4 Trade association 8 6

Canada 10 4

Top 5 Reasons to export** INTERESTED NON-EXPORTERS

Have a number of customers o/seas 33 5 Interested (% of non-exporters) 2 1

Only export as opportunities arise 18 4 Interested in support** 63 19

Integral to our business 18 4

Where our core customers are 15 4 UNINTERESTED NON-EXPORTERS

Access to more customers 15 4 Uninterested (% of non-exporters) 98 1

Value of exporting** Reasons for disinterest

0 to 10 per cent (of t/o) 49 6 Not relevant for our product/service 66 2

11 to 20 per cent 18 4 Busy enough with demand from UK 23 2

21 to 50 per cent 13 4 Other 18 2

51 to 80 per cent 14 4 Too much effort for too little reward 2 1

81 to 100 per cent 6 3 Other things are more important 1 1

Previous experience puts us off 1 1

Duration of Exporting** Don’t know where to start 1 <1

Up to 1 year 1 1 Overseas markets are too depressed 1 <1

1 – 3 years 4 2

3 – 5 years 8 3

5 – 10 years 15 4

10 years or more 71 5

Appendices

Page 42

5.1.2 WMCA Data Sheet

WM

CA

Mid

lan

ds

Engin

e

WM

CA

Mid

lan

ds

Engin

e

% +/- % +/- % +/- % +/- EXPORTERS Top 5 Barriers to more exports**

Exporting Rate 15 3 16 2 The cost 16 8 15 5 Indicative # of exporters in WMCA 4,550–4,800 None 17 9 14 5

Regular exporters 49 10 49 6 Economic uncertainty / Brexit 9 7 13 5 Experiencing obstacles 26 8 24 5 Other 10 7 10 4

Ambition to grow exports 68 9 66 5 Customs procedures or paperwork 8 6 7 4 Sought support 35 9 33 5

Desire for future support 25 8 27 5 Top 5 Nature of support received** Used Exporting is Great 10 6 12 4 Access to funding 14 11 20 8

Workshops/info on exporting 17 12 19 8 Key Markets** Other 10 9 14 7

France 21 8 27 5 Market research/intelligence 15 11 12 7 Germany 22 8 26 5 Intermediary to handle aspects 14 11 11 6

USA 26 9 25 5 Irish Republic 24 9 19 5 Top 5 Sources of support**

Worldwide 22 8 19 5 Chamber of Commerce 47 16 37 10 Spain 21 8 18 5 Government Organisation (inc. DIT) 25 14 35 10

Italy 15 7 15 4 Other 24 14 29 9 Netherlands 6 5 14 4 Private sector consultancy 11 10 11 6

Australia 13 7 12 4 Trade association 5 7 8 6

Canada 16 7 10 4


Have a number of customers o/seas 24 8 33 5 Interested (% of non-exporters) 1 1 2 1 Only export as opportunities arise 14 7 18 4 Indicative # interested in WMCA** 350–360

Integral to our business 18 7 18 4 Interested in support** 63 39 63 19

Where our core customers are 11 6 15 4

Access to more customers 12 6 15 4 UNINTERESTED NON-EXPORTERS

Value of exporting** Uninterested (% of non-exporters) 99 1 98 1 0 to 10 per cent (of t/o) 48 10 49 6

11 to 20 per cent 21 8 18 4 Reasons for disinterest 21 to 50 per cent 12 7 13 4 Not relevant for our product/service 66 4 66 2

51 to 80 per cent 11 6 14 4 Busy enough with demand from UK 25 4 23 2 81 to 100 per cent 7 5 6 3 Other 17 3 18 2

Too much effort for too little reward 2 1 2 1 Duration of Exporting** Other things are more important 1 1 1 1

Up to 1 year 0 – 1 1 Previous experience puts us off 1 1 1 1 1 – 3 years 5 4 4 2 Don’t know where to start 0 – 1 <1 3 – 5 years 10 6 8 3 Overseas markets are too depressed 0 – 1 <1

5 – 10 years 12 6 15 4

10 years or more 71 9 71 5

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019 Unweighted base = 655. Exporter base (unweighted) = 107 firms

** Data should be interpreted as indicative only due to small sample sizes

Appendices

Page 43

5.1.3 LEP Data Sheet – Black Country LEP

Bla

ck C

ou

ntr

y

LE

P

Mid

lan

ds

En

gin

e

Bla

ck C

ou

ntr

y

LE

P

Mid

lan

ds

En

gin

e

% +/- % +/- % +/- % +/- EXPORTERS Top 5 Barriers to more exports** Exporting Rate 19 6 16 2 The cost 13 14 15 5

Indicative # of exporters in LEP 1,340–1,510 None 9 11 14 5 Regular exporters 63 7 49 6 Economic uncertainty / Brexit 13 14 13 5 Experiencing obstacles 19 13 24 5 Other 18 15 10 4

Ambition to grow exports 71 15 66 5 Customs procedures or paperwork 9 11 7 4 Sought support 43 16 33 5 Desire for future support 18 13 27 5 Top 5 Nature of support received**

Used Exporting is Great 15 12 12 4 Access to funding 15 19 20 8 Workshops/info on exporting 15 19 19 8

Key Markets** Other 15 19 14 7

France 26 15 27 5 Market research/intelligence 5 11 12 7 Germany 18 13 26 5 Intermediary to handle aspects 30 24 11 6 USA 23 14 25 5

Irish Republic 22 14 19 5 Top 5 Sources of support** Worldwide 10 10 19 5 Chamber of Commerce 55 26 37 10 Spain 24 15 18 5 Government Organisation (inc. DIT) 38 25 35 10

Italy 13 11 15 4 Other 7 14 29 9 Netherlands 14 12 14 4 Private sector consultancy 0 – 11 6 Australia 18 13 12 4 Trade association 7 14 8 6

Canada 16 12 10 4 Top 5 Reasons to export** INTERESTED NON-EXPORTERS

Have a number of customers o/seas 32 15 33 5 Interested (% of non-exporters) 2 2 2 1 Only export as opportunities arise 13 11 18 4 Indicative # interested in LEP** 130–140 Integral to our business 26 14 18 4 Interested in support** 100 – 63 19

Where our core customers are 12 11 15 4 Access to more customers 12 11 15 4

UNINTERESTED NON-EXPORTERS

Value of exporting** Uninterested (% of non-exporters) 98 2 98 1 0 to 10 per cent (of t/o) 41 17 49 6 11 to 20 per cent 26 15 18 4 Reasons for disinterest

21 to 50 per cent 16 13 13 4 Not relevant for our product/service 61 8 66 2 51 to 80 per cent 7 9 14 4 Busy enough with demand from UK 28 7 23 2 81 to 100 per cent 10 11 6 3 Other 19 6 18 2

Too much effort for too little reward 4 3 2 1

Duration of Exporting** Other things are more important 1 1 1 1 Up to 1 year 0 – 1 1 Previous experience puts us off 1 1 1 1 1 – 3 years 8 9 4 2 Don’t know where to start 2 2 1 <1

3 – 5 years 8 9 8 3 Overseas markets are too depressed 1 1 1 <1

5 – 10 years 10 10 15 4 10 years or more 71 15 71 5

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019 Unweighted base = 182. Exporter base (unweighted) = 35 firms ** Data should be interpreted as indicative only due to small sample sizes

Appendices

Page 44

5.1.4 LEP Data Sheet – Coventry & Warwickshire LEP

Co

ven

try &

Warw

icksh

ire

LE

P

Mid

lan

ds

Engin

e

Co

ven

try &

Warw

icksh

ire

LE

P

Mid

lan

ds

Engin

e


Exporting Rate 17 6 16 2 The cost 17 18 15 5 Indicative # of exporters in LEP 1,050–1,170 None 23 20 14 5

Regular exporters 45 7 49 6 Economic uncertainty / Brexit 13 16 13 5 Experiencing obstacles 24 16 24 5 Other 0 – 10 4




France 29 18 27 5 Market research/intelligence 10 17 12 7 Germany 28 18 26 5 Intermediary to handle aspects 0 – 11 6



Italy 13 14 15 4 Other 29 27 29 9 Netherlands 0 – 14 4 Private sector consultancy 10 17 11 6

Australia 7 10 12 4 Trade association 0 – 8 6

Canada 16 15 10 4


Have a number of customers o/seas 23 16 33 5 Interested (% of non-exporters) 0 – 2 1 Only export as opportunities arise 14 13 18 4 Indicative # interested in LEP** –

Integral to our business 17 14 18 4 Interested in support** – – 63 19



Value of exporting** Uninterested (% of non-exporters) 100 – 98 1 0 to 10 per cent (of t/o) 51 19 49 6




Up to 1 year 0 – 1 1 Previous experience puts us off 0 – 1 1 1 – 3 years 4 7 4 2 Don’t know where to start 0 – 1 <1 3 – 5 years 15 13 8 3 Overseas markets are too depressed 0 – 1 <1

5 – 10 years 7 9 15 4


Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019 Unweighted base = 176. Exporter base (unweighted) = 28 firms ** Data should be interpreted as indicative only due to small sample sizes

Appendices

Page 45

5.1.5 LEP Data Sheet – Derby, Derbyshire, Nottingham & Nottinghamshire

(D2N2) LEP

D2N

2 L

EP

Mid

lan

ds

Engin

e

D2N

2 L

EP

Mid

lan

ds

Engin

e



Regular exporters 51 7 49 6 Economic uncertainty / Brexit 0 – 13 5 Experiencing obstacles 38 16 24 5 Other 18 15 10 4



Workshops/info on exporting 63 36 19 8 Key Markets** Other 0 – 14 7






Canada 9 9 10 4


Have a number of customers o/seas 23 14 33 5 Interested (% of non-exporters) 2 2 2 1 Only export as opportunities arise 25 14 18 4 Indicative # interested in LEP** 180–190





11 to 20 per cent 29 17 18 4 Reasons for disinterest 21 to 50 per cent 0 – 13 4 Not relevant for our product/service 58 8 66 2



Up to 1 year 6 8 1 1 Previous experience puts us off 1 2 1 1 1 – 3 years 0 – 4 2 Don’t know where to start 0 – 1 <1 3 – 5 years 4 6 8 3 Overseas markets are too depressed 0 – 1 <1

5 – 10 years 25 14 15 4



Appendices

Page 46

5.1.6 LEP Data Sheet – Greater Birmingham & Solihull LEP

Gre

ate

r

Bir

min

gh

am

&

So

lih

ull L

EP

Mid

lan

ds

Engin

e

Gre

ate

r

Bir

min

gh

am

&

So

lih

ull L

EP

Mid

lan

ds

Engin

e












Canada 16 11 10 4


Have a number of customers o/seas 20 12 33 5 Interested (% of non-exporters) 2 2 2 1 Only export as opportunities arise 15 11 18 4 Indicative # interested in LEP** 220








Up to 1 year 0 – 1 1 Previous experience puts us off 1 1 1 1 1 – 3 years 4 6 4 2 Don’t know where to start 0 0 1 <1 3 – 5 years 9 8 8 3 Overseas markets are too depressed 0 1 1 <1

5 – 10 years 17 11 15 4



Appendices

Page 47

5.1.7 LEP Data Sheet – Greater Lincolnshire LEP

Gre

ate

r

Lin

co

lnsh

ire L

EP

Mid

lan

ds

Engin

e

Gre

ate

r

Lin

co

lnsh

ire L

EP

Mid

lan

ds

Engin

e












Canada 9 10 10 4









Too much effort for too little reward 0 – 2 1 Duration of Exporting** Other things are more important 2 2 1 1

Up to 1 year 0 – 1 1 Previous experience puts us off 0 – 1 1 1 – 3 years 0 – 4 2 Don’t know where to start 1 1 1 <1 3 – 5 years 12 12 8 3 Overseas markets are too depressed 1 1 1 <1

5 – 10 years 10 11 15 4


Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2017 / 2019 Unweighted base = 181. Exporter base (unweighted) = 29 firms


Appendices

Page 48

5.1.8 LEP Data Sheet – Leicester & Leicestershire LEP

Leic

est

er

&

Leic

est

ers

hir

e

LE

P

Mid

lan

ds

Engin

e

Leic

est

er

&

Leic

est

ers

hir

e

LE

P

Mid

lan

ds

Engin

e

% +/- % +/

-

% +/- % +/-

EXPORTERS Top 5 Barriers to more exports**











Canada 4 7 10 4








51 to 80 per cent 18 14 14 4 Busy enough with demand from UK 28 7 23 2 81 to 100 per cent 0 – 6 3 Other 23 7 18 2

Too much effort for too little reward 3 3 2 1 Duration of Exporting** Other things are more important 2 2 1 1 Up to 1 year 4 7 1 1 Previous experience puts us off 1 1 1 1

1 – 3 years 2 5 4 2 Don’t know where to start 0 – 1 <1 3 – 5 years 0 – 8 3 Overseas markets are too depressed 1 2 1 <1

5 – 10 years 21 14 15 4



Appendices

Page 49

5.1.9 LEP Data Sheet – South East Midlands LEP (SEMLEP)

SE

ML

EP

Mid

lan

ds

Engin

e

SE

ML

EP

Mid

lan

ds

Engin

e







France 33 17 27 5 Market research/intelligence 0 – 12 7 Germany 35 18 26 5 Intermediary to handle aspects 0 – 11 6



Italy 25 16 15 4 Other 32 35 29 9 Netherlands 17 14 14 4 Private sector consultancy 0 – 11 6


Canada 0 – 10 4



Integral to our business 18 13 18 4 Interested in support** 100 – 63 19







Up to 1 year 0 – 1 1 Previous experience puts us off 0 – 1 1 1 – 3 years 2 5 4 2 Don’t know where to start 0 – 1 <1 3 – 5 years 7 9 8 3 Overseas markets are too depressed 0 – 1 <1

5 – 10 years 23 15 15 4




Appendices

Page 50

5.1.10 LEP Data Sheet – Stoke-on-Trent & Staffordshire LEP

Sto

ke-o

n-T

ren

t

& S

taff

ord

shir

e

LE

P

Mid

lan

ds

Engin

e

Sto

ke-o

n-T

ren

t

& S

taff

ord

shir

e

LE

P

Mid

lan

ds

Engin

e



Regular exporters 45 7 49 6 Economic uncertainty / Brexit 0 – 13 5 Experiencing obstacles 17 13 24 5 Other 10 14 10 4



Workshops/info on exporting 0 – 19 8 Key Markets** Other 0 – 14 7




Italy 9 11 15 4 Other 40 30 29 9 Netherlands 12 12 14 4 Private sector consultancy 0 – 11 6


Canada 13 13 10 4



Integral to our business 33 17 18 4 Interested in support** 0 – 63 19







Up to 1 year 0 – 1 1 Previous experience puts us off 2 2 1 1 1 – 3 years 4 7 4 2 Don’t know where to start 1 1 1 <1 3 – 5 years 5 7 8 3 Overseas markets are too depressed 1 1 1 <1

5 – 10 years 17 13 15 4




Appendices

Page 51

5.1.11 LEP Data Sheet – The Marches LEP

Th

e M

arc

hes

LE

P

Mid

lan

ds

Engin

e

Th

e M

arc

hes

LE

P

Mid

lan

ds

Engin

e


Exporting Rate 16 6 16 2 The cost 11 13 15 5 Indicative # of exporters in LEP 950–1,060 None 14 15 14 5



Desire for future support 32 17 27 5 Top 5 Nature of support received** Used Exporting is Great 10 11 12 4 Access to funding 0 – 20 8

Workshops/info on exporting 9 21 19 8 Key Markets** Other 0 – 14 7

France 31 17 27 5 Market research/intelligence 0 – 12 7 Germany 31 17 26 5 Intermediary to handle aspects 0 – 11 6





Canada 7 9 10 4










Up to 1 year 0 – 1 1 1 Previous experience puts us off 0 – 1 1 1 – 3 years 6 9 4 2 1 Don’t know where to start 2 2 1 <1 3 – 5 years 8 10 8 3 1 Overseas markets are too depressed 0 – <1 <1

5 – 10 years 18 14 15 4




Appendices

Page 52

5.1.12 LEP Data Sheet – Worcestershire LEP

Wo

rcest

ers

hir

e

LE

P

Mid

lan

ds

Engin

e

Wo

rcest

ers

hir

e

LE

P

Mid

lan

ds

Engin

e


Exporting Rate 14 5 16 2 The cost 16 17 15 5 Indicative # of exporters in LEP 980–1,070 None 23 19 14 5 Regular exporters 56 7 49 6 Economic uncertainty / Brexit 2 7 13 5

Experiencing obstacles 18 14 24 5 Other 13 16 10 4 Ambition to grow exports 70 17 66 5 Customs procedures or paperwork 0 – 7 4

Sought support 32 17 33 5 Desire for future support 18 14 27 5 Top 5 Nature of support received**

Used Exporting is Great 7 9 12 4 Access to funding 28 26 20 8 Workshops/info on exporting 4 12 19 8

Key Markets** Other 39 29 14 7 France 16 14 27 5 Market research/intelligence 0 – 12 7

Germany 21 16 26 5 Intermediary to handle aspects 0 – 11 6 USA 30 18 25 5

Irish Republic 25 17 19 5 Top 5 Sources of support** Worldwide 25 17 19 5 Chamber of Commerce 46 29 37 10

Spain 9 11 18 5 Government Organisation (inc. DIT) 0 – 35 10 Italy 6 9 15 4 Other 48 30 29 9

Netherlands 4 8 14 4 Private sector consultancy 0 – 11 6 Australia 9 11 12 4 Trade association 7 15 8 6

Canada 14 14 10 4

Top 5 Reasons to export** INTERESTED NON-EXPORTERS Have a number of customers o/seas 23 16 33 5 Interested (% of non-exporters) 0 – 2 1

Only export as opportunities arise 13 12 18 4 Indicative # interested in LEP** – Integral to our business 11 11 18 4 Interested in support** – – 63 19

Where our core customers are 9 11 15 4 Access to more customers 21 15 15 4

UNINTERESTED NON-EXPORTERS Value of exporting** Uninterested (% of non-exporters) 100 – 98 1

0 to 10 per cent (of t/o) 46 20 49 6 11 to 20 per cent 20 16 18 4 Reasons for disinterest

21 to 50 per cent 3 6 13 4 Not relevant for our product/service 60 7 66 2 51 to 80 per cent 13 14 14 4 Busy enough with demand from UK 24 6 23 2

81 to 100 per cent 19 16 6 3 Other 20 6 18 2 Too much effort for too little reward 4 3 2 1

Duration of Exporting** Other things are more important 0 – 1 1 Up to 1 year 0 – 1 1 Previous experience puts us off 2 2 1 1

1 – 3 years 2 5 4 2 Don’t know where to start 0 – 1 <1 3 – 5 years 13 12 8 3 Overseas markets are too depressed 1 1 1 <1

5 – 10 years 7 9 15 4 10 years or more 79 15 71 5


Appendices

Page 53

5.2 Additional data tables and charts

5.2.1 Regular exporters by sector and size band

Figure 30: Regular exporters – % of firms describing themselves as ‘regular’

exporters, by sector

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019 Unweighted base = 298. Data should be interpreted as indicative only due to small sample size.

Figure 31: Regular exporters – % of firms describing themselves as ‘regular’

exporters, by size band


Appendices

Page 54

5.2.2 Obstacles to exporting

Figure 32: Obstacles to exporting – % of firms experiencing obstacles by sector


Figure 33: Obstacles to exporting – % of firms experiencing obstacles by size band


Appendices

Page 55

5.2.3 Increasing exports

Figure 34: Ambition to increase exports – % of exporters with ambition to increase exports, overall and by sector


Figure 35: Ambition to increase exports – % of exporters with

ambition to increase exports, overall and by size band


Appendices

Page 56

Table 9: All Barriers to increased exporting – % of exporters with ambition to

increase exports

Barrier Percentage Confidence

interval (+/-)

The cost 15% 14%

Brexit 13% 14%

Dealing with customs procedures or paperwork 7% 10%

Tariffs and/or tax issues 6% 10%

Competition 6% 9%

Finding appropriately skilled staff to take exporting forward 6% 9%

We do not have the capacity, resources or staff 6% 9%

Access to local market regulation and standards 5% 9%

Finding the additional management time 5% 8%

Limited demand for our products or services overseas 4% 8%

Creating awareness for our products or services 4% 8%

Negotiating the culture and language 4% 8%

Foreign customers prefer doing business with local firms in their market,

so will not be interested in imported goods or services

4% 7%

Trouble finding customers and trustworthy clients 3% 7%

Supply chain and/or logistical issues 3% 6%

The effort required compared to all the demands on our time 2% 6%

Building relationships with key influencers or decision-makers 2% 6%

Knowing which market to focus on next 2% 6%

Understanding how to best tailor their products or services to meet

overseas market needs

2% 5%

Ensuring we get paid and enforcing contracts 2% 5%

Engaging agents or distributors to promote our products/services 2% 5%

Understanding overseas market structures/ lack of market knowledge 2% 5%

Changes in the market place 2% 5%

Exchange rates 2% 5%

Accessing suitable markets 1% 5%

Cash flow 1% 4%

Obtaining basic information about doing business abroad 1% 4%

Protecting our intellectual property 1% 4%

Establishing dialogue with prospective customers or business partners 1% 3%

Accessing funding 1% 3%

Safeguarding existing business 0% 2%

Other 10% 12%

Do not know 2% 5%

There are no barriers 14% 14%

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019 Unweighted base = 198

Appendices

Page 57

5.2.4 Support for exporting

Figure 36: Support for exporting – % of exporters who have sought support, overall and by sector


Figure 37: Support for exporting – % of exporters who have sought support,

overall and by size band


Appendices

Page 58

Figure 38: Desire for future exporting support by sector – % of exporters


Figure 39: Desire for future exporting support by size band – % of exporters


Appendices

Page 59

5.2.5 Interested Non-exporters

Table 10: Markets that interested non-exporters want to export to – % of interested non-exporters

Market % Confidence

interval (+/-)

Africa 5% 9%

Australia 8% 11%

Bangladesh 5% 9%

Belgium 5% 9%

Canada 7% 10%

China 5% 9%

EU 4% 8%

Europe 26% 17%

France 10% 12%

Germany 10% 12%

India 13% 13%

Italy 2% 6%

Japan 4% 8%

Middle East 5% 9%

Netherlands 10% 12%

Norway 5% 9%

Portugal 3% 6%

Russia 5% 9%

Singapore 4% 8%

South Africa 8% 11%

Spain 5% 9%

Sweden 5% 9%

Turkey 13% 13%

UAE 3% 6%

USA 18% 15%

Worldwide 5% 9%

Any 23% 17%


Appendices

Page 60

Figure 40: Top 10 reasons to be interested in exporting – % of interested non-

exporters

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019. Unweighted base = 25. Data should be interpreted as indicative only due to small sample sizes.

Appendices

Page 61


Table 11: Reasons for not seeking to start exporting by LEP area – % of businesses that are not interested in exporting

LEP

Not

rele

vant

for

our

pro

duct

s/ s

erv

ices

Busy

enough

with

dem

and fro

m U

K

Pre

vious

experi

ence

puts

us

off

Too m

any

oth

er

thin

gs a

re m

ore

import

ant

Ove

rseas

mar

kets

are t

oo d

epre

ssed

Too m

uch

effort

for

too little r

ew

ard

Don’t k

now

where

to s

tart

Oth

er

Black Country % 61% 28% 1% 1% 1% 4% 2% 19%

+/- 8% 7% 1% 1% 1% 3% 2% 6%

Coventry &

Warwickshire

% 62% 25% 0% 1% 0% 1% 0% 18%

+/- 8% 7% 0% 2% 0% 1% 0% 6%

D2N2 % 58% 31% 1% 2% 0% 3% 0% 21%

+/- 8% 8% 2% 2% 0% 3% 0% 7%

Greater B’ham

& Solihull

% 69% 23% 1% 1% 0% 2% 0% 16%

+/- 6% 5% 1% 1% 1% 2% 0% 5%

Greater

Lincolnshire

% 74% 18% 0% 2% 1% 0% 1% 15%

+/- 7% 6% 1% 2% 1% 1% 1% 6%

Leicester and

Leicestershire

% 56% 28% 1% 2% 1% 3% 0% 23%

+/- 8% 7% 1% 2% 2% 3% 0% 7%

SEMLEP % 65% 21% 0% 1% 0% 3% 0% 18%

+/- 8% 7% 0% 1% 1% 3% 1% 6%

Stoke-on-Trent

& Staffordshire

% 71% 19% 2% 1% 1% 2% 1% 16%

+/- 7% 6% 2% 1% 1% 2% 1% 5%

The Marches % 69% 23% 0% 1% 0% 1% 2% 20%

+/- 8% 7% 0% 1% 0% 1% 2% 7%

Worcestershire % 60% 24% 2% 0% 1% 4% 0% 20%

+/- 7% 6% 2% 1% 1% 3% 1% 6%

Total % 65% 23% 1% 1% 0% 2% 1% 18%

+/- 2% 2% 0% 1% 0% 1% 0% 2%

Source: Qa Research and Ortus Economic Research – Midlands Engine Export Survey 2019 Unweighted base = 1,475

Appendices

Page 62

Table 12: Reasons for not seeking to start exporting by sector – % of businesses

that are not interested in exporting

Sector

Not

rele

vant

for

our

pro

duct

s/ s

erv

ices

Busy

enough

with

dem

and fro

m U

K

Pre

vious

experi

ence

puts

us

off

Too m

any

oth

er

thin

gs a

re m

ore

import

ant

Ove

rseas

mar

kets

are t

oo d

epre

ssed

Too m

uch

effort

for

too little r

ew

ard

Don’t k

now

where

to s

tart

Oth

er

Production % 51% 34% 0% 1% 1% 3% 1% 24%

+/- 5% 5% 1% 1% 1% 2% 1% 4%

Wholesale,

Retail, Logistics

% 55% 28% 1% 2% 0% 3% 1% 24%

+/- 5% 4% 1% 1% 1% 2% 1% 4%

Accommodation % 89% 9% 0% 0% 0% 0% 0% 5%

+/- 5% 4% 0% 0% 0% 1% 0% 3%

Information &

Communication

% 63% 30% 2% 2% 0% 0% 1% 19%

+/- 13% 12% 4% 4% 0% 0% 2% 10%

Finance % 77% 21% 0% 0% 0% 0% 0% 28%

+/- 18% 18% 0% 0% 0% 0% 0% 20%

Real Estate &

Administrative

% 74% 17% 1% 1% 0% 3% 0% 10%

+/- 7% 6% 2% 2% 0% 3% 0% 5%

Prof, Scientific,

Technical

% 66% 20% 1% 1% 0% 3% 1% 24%

+/- 8% 6% 2% 1% 0% 3% 1% 7%

Arts, Recreation

& Other

% 81% 17% 1% 1% 1% 2% 1% 9%

+/- 5% 5% 2% 1% 1% 2% 1% 4%

Total % 65% 23% 1% 1% 0% 2% 1% 18%

+/- 2% 2% 0% 1% 0% 1% 0% 2%


Appendices

Page 63

Table 13: Reasons for not seeking to start exporting by size band – % of businesses

that are not interested in exporting

Size band

Not

rele

vant

for

our

pro

duct

s/ s

erv

ices

Busy

enough

with

dem

and fro

m U

K

Pre

vious

experi

ence

puts

us

off

Too m

any

oth

er

thin

gs a

re m

ore

import

ant

Ove

rseas

mar

kets

are t

oo d

epre

ssed

Too m

uch

effort

for

too little r

ew

ard

Don’t k

now

where

to s

tart

Oth

er

5 to 19 % 66% 23% 1% 1% 0% 2% 1% 17%

+/- 3% 3% 1% 1% 0% 1% 0% 2%

20 to 49 % 59% 27% 0% 0% 0% 2% 1% 20%

+/- 5% 5% 1% 1% 1% 1% 1% 4%

50 to 99 % 60% 26% 1% 2% 1% 1% 0% 18%

+/- 10% 9% 2% 3% 2% 2% 0% 8%

100 plus

% 67% 24% 3% 0% 0% 2% 0% 25%

+/- 14% 13% 5% 0% 0% 4% 0% 13%

Total % 65% 23% 1% 1% 0% 2% 1% 18%

+/- 2% 2% 0% 1% 0% 1% 0% 2%


5.2.7 Odds ratios

Table 14: Odds ratios by size band

Probability of exporting

Odds of exporting

Odds ratio

5 to 19 14.9% 4.7 : 1 0.91

B: 20 to 49 17.5% 3.7 : 1 1.10

20 to 49 22.4% 2.5 : 1 1.50

D: 100 plus 32.8% 1.1 : 1 2.53

All 16.2% 4.2 : 1 Base


Appendices

Page 64

Table 15: Odds ratios by sector

Probability of exporting

Odds of exporting

Odds ratio

Production 24.5% 2.1 : 1 1.69

Wholesale, Retail & Logistics 17.6% 3.7 : 1 1.11

Accommodation 8.1% 10.3 : 1 0.46

Information & Communication 16.4% 4.1 : 1 1.02

Finance 5.2% 17.1 : 1 0.29

Real Estate & Administrative 9.4% 8.6 : 1 0.54

Professional, Scientific, Technical 17.0% 3.9 : 1 1.06

Arts, Recreation & Other 8.3% 10 : 1 0.47

All 16.2% 4.2 : 1 Base


Table 16: Odds ratios by ownership

Probability of

exporting

Odds of

exporting

Odds ratio

UK owned / Independent 15.4% 4.5 : 1 0.94

Foreign owned 47.9% 0.1 : 1 4.76

All 16.2% 4.2 : 1 Base


Appendices

Page 65

5.3 Survey Questionnaire

Exec_Forename

Exec_Surname

Exec_Job_Title

Company

Telephone

If true, set 'now' to question 'StartTime'

If true, set 'now' to question 'SurveyTime'

Appendices

Page 66

Introduction

Good morning/afternoon, my name is AgentName, and I’m calling from Qa Research on behalf

of the Department for International Trade. May I speak to Exec_Forename Exec_Surname?

[Once put through to the right person]

The Department for International Trade has commissioned us to carry out a survey with

businesses across the Midlands, to find out how they feel about business growth and whether

they have or would consider export as part of their business plans. The interview would take

approximately 10 minutes to complete if your company exports, or 2-3 minutes if your company

does not export, and all of your answers would be anonymous and confidential. Would you be

happy to take part?

This interview will be carried out according to the Market Research Society’s Code of Conduct

and all your answers and information you provide will be treated as confidential in accordance

with all current data protection legislation. The legal basis for this research is ‘public task’ and if

you’d like to see a copy of the Privacy Information Document that accompanies this survey you

can visit [???] This details the background to this research, how your data will be kept securely

and your rights. The call will be recorded for quality purposes. Is that ok?

Section 1: Clarification and filtering questions

Q1. Please confirm your business is based in [LocalAuthority] local authority

1 Yes

2 No If = 1, set '??LocalAuthority??' to question 'Q1LA'

Q1LA. If no, record one from list of 77 local authorities below.

1 Amber Valley

2 Ashfield

3 Aylesbury Vale

4 Bassetlaw

5 Bedford

6 Birmingham

7 Blaby

8 Bolsover

9 Boston

10 Bromsgrove

11 Broxtowe

12 Cannock Chase

13 Central Bedfordshire

14 Charnwood

15 Cherwell

16 Chesterfield

17 Corby

18 Coventry

19 Daventry

Appendices

Page 67

20 Derby

21 Derbyshire Dales

22 Dudley

23 East Lindsey

24 East Northamptonshire

25 East Staffordshire

26 Erewash

27 Gedling

28 Harborough

29 Herefordshire

30 High Peak

31 Hinckley and Bosworth

32 Kettering

33 Leicester

34 Lichfield

35 Lincoln

36 Luton

37 Malvern Hills

38 Mansfield

39 Melton

40 Milton Keynes

41 Newark and Sherwood

42 Newcastle-under-Lyme

43 North East Derbyshire

44 North East Lincolnshire

45 North Kesteven

46 North Lincolnshire

47 North Warwickshire

48 North West Leicestershire

49 Northampton

50 Nottingham

51 Nuneaton and Bedworth

52 Oadby and Wigston

53 Redditch

54 Rugby

55 Rushcliffe

56 Sandwell

57 Shropshire

58 Solihull

59 South Derbyshire

60 South Holland

61 South Kesteven

62 South Northamptonshire

63 South Staffordshire

64 Stafford

65 Staffordshire Moorlands

66 Stoke-on-Trent

67 Stratford-on-Avon

68 Tamworth

69 Telford and Wrekin

70 Walsall

Appendices

Page 68

71 Warwick

72 Wellingborough

73 West Lindsey

74 Wolverhampton

75 Worcester

76 Wychavon

77 Wyre Forest

78 None of these If = 78, goto 'ThankAndClose' (and do not keep the questionnaire)

Q2. And please confirm your business primarily works in [Sector07] sector

1 Yes

2 No If = 1, set '??Sector07??' to question 'Q2Sector'

If = 1, do not ask 'Q2a'

Q2 How would you describe the main activity or service of your business?

INTERVIEWER PROMPT: Based on their response, select one of the SIC

options listed.

1 A - Agriculture, forestry and fishing

2 B - Mining and quarrying

3 C - Manufacturing

4 D - Electricity, gas, steam and air conditioning supply

5 E - Water supply; sewerage, waste management and remediation activities

6 F - Construction

7 G - Wholesale and retail trade; repair of motor vehicles and motorcycles

8 H - Transportation and storage

9 I - Accommodation and food services activities

10 J - Information and communication

11 K - Financial and insurance activities

12 L - Real estate activities

13 M - Professional, scientific and technical activities

14 N - Administrative and support service activities

15 R - Arts, entertainment and recreation

16 S - Other service activities

17 Can't confirm a sector above - WRITE DESCRIPTION IN THE BOX

BELOW

18 None of these If = 18, goto 'ThankAndClose' (and do not keep the questionnaire)

If = 17, Only ask 'Q2a'

Appendices

Page 69

If this is not immediately apparent, do not delay the interview; record in the open

box available. We will code it later.

This list covers all business activities except the following:

- Public administration and defence; compulsory social security

- Education

- Human health and social work activities

If accompany falls within one of these, confirm with respondent; THANK &

CLOSE.

Q2a INTERVIEWER: Please describe what the business does.

Q3. Does your business currently sell products or services to customers

outside of the UK?

1 Yes

2 No If = 1, do not ask 'Section3'

If = 1, 2, do not ask 'ThankAndClose'

If = 1, do not ask 'subsec1'

If = 1, do not ask 'Q4'

Q4. Are you interested in, or looking to start selling your products or services

to customers outside the UK?

1 Yes

2 No If = 1, do not ask 'Section2'

If = 2, do not ask 'Section2'

If = 2, do not ask 'Section3'

If = 1, do not ask 'subsec1'

Appendices

Page 70

Q5. Please tell us why your business is not looking to start exporting. [Do not

immediately read out list below, but use as prompts if necessary] (8 maximum responses)

1 Not relevant for our products and/or services (please specify why?)

2 Busy enough with demand from UK customers

3 Previous experience puts us off

4 Too many other things are more important

5 Overseas markets are too depressed

6 See it as too much effort for too little reward

7 Don’t know where to start

8 Other (please specify) If = 8, Only ask 'Q5Other'

If = 1, Only ask 'Q5NotRel'

Q5NotRel

Q5Other

Q5a. Over the next three years, which of the following markets, if any, does

your business plan to start or continue importing from? READ OUT (11 maximum responses)

1 Africa

2 Asia-Pacific

3 China

4 Eastern Europe and Central Asia Network

5 Europe

6 Latin America

7 Middle East

8 North America

9 South Asia

10 Don’t import and have no plans to

11 Can't confirm a market above - WRITE DESCRIPTION IN THE BOX

BELOW If = 11, Only ask 'Q5a_Open'

IF CAN'T CODE ABOVE, WRITE IN BOX BELOW

Appendices

Page 71

Q6. Would you like to talk to an International Trade Adviser about the

potential benefits of finding customers overseas?

1 Yes

2 No If = 2, do not ask 'Details'

Please could I take down your contact details so an International Trade Advisor can

contact you?

Name

Email

Telephone

Q7. What was the turnover of your company in the last financial year? [Read

out options below; do not push if respondent is disinclined to answer]

1 £0-£499,000

2 £500,000-£4.9m

3 £5m-£49m

4 £50m+

5 Refused

Appendices

Page 72

Section 2: Exporters

Q8. Would you describe your business as a regular exporter? [Do not read

out descriptions below, use statements as guidance for respondents who

require clarification]

1 Yes – exports are an important element of sales and anticipated in our business

model and/or we are active in generating more business from overseas customers.

2 No - we get some sales from overseas but these are intermittent. We are not

active in securing business from overseas customers and tend to respond to enquiries we receive.

Q9. What was the turnover of your company in the last financial year? [Read

out options below; do not push if respondent is disinclined to answer]

1 £0-£499,000

2 £500,000-£4.9m

3 £5m-£49m

4 £50m+

5 Refused

5.4 Q10. Can you tell us how much of your company’s annual turnover in

the last financial year came from exporting, either as; a. Value of annual turnover, or

b. As a % of your company’s total annual turnover

[Read out options below; do not push if respondent is disinclined to answer]

Q10Refused (1 maximum responses)

1 Refused If = 1, do not ask 'Q10b'

If = 1, do not ask 'Q10a'

If = 1, do not ask 'Q10Pre'

Q10. Answer with ...

1 a. Value of annual turnover from exporting, or

2 b. As a % of your company’s total annual turnover If = 1, Only ask 'Q10a'

If = 2, Only ask 'Q10b'

a - Value of annual turnover from exporting

1 £0-£499,000

2 £500,000-£4.9m

3 £5m-£49m

4 £50m+

b - As a % of your company’s total annual turnover (must be between 0 and 100)

Appendices

Page 73

Q11. What overseas markets does your company export to?

[Do not read out list below, record responses]

(52 maximum responses)

1 Algeria

2 Argentina

3 Australia

4 Austria

5 Bahrain

6 Belgium

7 Brazil

8 Canada

9 Chile

10 China

11 Colombia

12 Croatia

13 Czech Republic

14 Denmark

15 Finland

16 France

17 Germany

18 Greece

19 Hong Kong

20 Hungary

21 India

22 Indonesia

23 Iran

24 Irish Republic

25 Israel

26 Italy

27 Japan

28 Kuwait

29 Malaysia

30 Mexico

31 Netherlands

32 New Zealand

33 Norway

34 Poland

35 Portugal

36 Qatar

37 Russia

38 Saudi Arabia

39 Serbia

40 Singapore

41 South Africa

42 South Korea

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43 Spain

44 Sweden

45 Switzerland

46 Taiwan

47 Thailand

48 Turkey

49 UAE

50 USA

51 Other (record answer)

52 Worldwide If = 51, Only ask 'Q11Other'

If = 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46,

47, 48, 49, 50, 51, set '??Q11??' to question 'Q11aHidden'

If = 52, set

'??Q11aHidden??+1;2;3;4;5;6;7;8;9;10;11;12;13;14;15;16;17;18;19;20;21;22;23;24;25;26;27;28;29;30;31;32;33;34;35;36;37;38;39;4 0;41;42;43;44;45;46;47;

48;49;50;51' to question 'Q11aHidden'

If = 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46,

47, 48, 49, 50, 51, do not ask 'Q11a_Other'

Q11Other

Q11a. Which three markets are your largest markets? (by value of exports) (3 maximum responses)

1 Algeria

2 Argentina

3 Australia

4 Austria

5 Bahrain

6 Belgium

7 Brazil

8 Canada

9 Chile

10 China

11 Colombia

12 Croatia

13 Czech Republic

14 Denmark

15 Finland

16 France

17 Germany

18 Greece

19 Hong Kong

20 Hungary

21 India

22 Indonesia

23 Iran

24 Irish Republic

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25 Israel

26 Italy

27 Japan

28 Kuwait

29 Malaysia

30 Mexico

31 Netherlands

32 New Zealand

33 Norway

34 Poland

35 Portugal

36 Qatar

37 Russia

38 Saudi Arabia

39 Serbia

40 Singapore

41 South Africa

42 South Korea

43 Spain

44 Sweden

45 Switzerland

46 Taiwan

47 Thailand

48 Turkey

49 UAE

50 USA

51 Other (??Q11Other??) If = 51, Only ask 'Q11a_Other'

Q11a_Other

Q12a. Over the next three years, are you planning to expand into new export

markets?

1 Yes

2 No If = 2, do not ask 'Q12b'

Appendices

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Q12b. Which overseas markets is your company planning to start exporting

to? (20 maximum responses)

1 Algeria

2 Argentina

3 Australia

4 Austria

5 Bahrain

6 Belgium

7 Brazil

8 Canada

9 Chile

10 China

11 Colombia

12 Croatia

13 Czech Republic

14 Denmark

15 Finland

16 France

17 Germany

18 Greece

19 Hong Kong

20 Hungary

21 India

22 Indonesia

23 Iran

24 Irish Republic

25 Israel

26 Italy

27 Japan

28 Kuwait

29 Malaysia

30 Mexico

31 Netherlands

32 New Zealand

33 Norway

34 Poland

35 Portugal

36 Qatar

37 Russia

38 Saudi Arabia

39 Serbia

40 Singapore

41 South Africa

42 South Korea

43 Spain

44 Sweden

45 Switzerland

46 Taiwan

47 Thailand

48 Turkey

Appendices

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49 UAE

50 USA

51 Other (record answer) If = 51, Only ask 'Q12b_Other'

Q12b_Other

Q12c. What are the key factors influencing your business’s export strategy

over the next three years? (11 maximum responses)

1 Increased demand from buyers

2 Exchange rates

3 Existence of Free Trade Agreements

4 Greater awareness of these markets

5 Existing customer moved or expanded into a new market

6 Advice received from DIT

7 The UKs withdrawal from the EU

8 To benefit from economies of scale

9 Excess capacity within the business


11 Don’t know If = 10, Only ask 'Q12c_Other'

Q12c_Other

Q12d. Thinking now about your business decisions, can you tell us why you

export? DO NOT READ OUT (20 maximum responses)

1 It’s where our core markets are

2 It’s integral to our business

3 It’s part of our overall growth strategy

4 Reducing risk

5 Increased competitiveness

6 Increased business productivity

7 Innovation and new product development

8 Co-operate with other businesses

9 Business survival

10 Faster business growth

11 Increased business sustainability

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12 Improved reputation, credibility and profile

13 Increased profitability

14 Increased turnover

15 Access to more customers

16 We have a number of customers overseas

17 While it’s not core we see it as a useful development

18 We only export as opportunities arise

19 It is stimulating for the company and staff

20 Other (record answer) If = 20, Only ask 'Q12d_Other'

Q12d_Other

Q13. And for how long has your business been exporting? [Do not

immediately read out list below, but use as prompts if necessary]

1 Up to 1 year

2 1 year & over, but less than 3 years

3 3 years & over, but less than 5 years

4 5 years & over, but less than 10 years

5 10 years & over

6 Don't know

Q14. Did you face any challenges or obstacles when you first started

exporting?

1 Yes

2 No

3 Don't know If = 2, do not ask 'Q16Other'

If = 2, do not ask 'Q15Other'





Q15. What were these challenges? [Do not read out list below, record

responses against best fit] (17 maximum responses)

1 Finding customers

2 Market knowledge

3 Marketing and product promotion

4 Didn't know how to start

5 Previous attempts were unsuccessful

Appendices

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6 Worries about getting paid

7 Worries about people stealing our ideas and intellectual property

8 Don't know if there was demand for our goods and service

9 Concerned that exporting is only for large companies

10 Didn't know how to find customers or sell in foreign markets

11 Local regulation and standards

12 Tariffs and/or tax issues

13 Supply chain and/or logistical issues

14 Worries about foreign languages

15 Worries about exchange rates

16 Worries about sufficient time

17 Other (record answer) If = 17, Only ask 'Q15Other'

Q15Other

Q16. What factors helped your business overcome these challenges and start

exporting? [Do not read out list below, record responses against best fit] (9 maximum responses)

1 Proactively finding customers through business development activity

2 Greater access to overseas distributors and partners

3 Government Organisational support

4 Private sector consultancy support

5 Bank support

6 Personal relationships or friendships

7 Enquiries from international customers

8 Funding support


Q16Other

Appendices

Page 80

Q17. Does your business want to export more than it currently does?

1 Yes

2 No If = 2, do not ask 'Q18'


Q18. What barriers or challenges do you face which prevent your business

from exporting more? [Do not read out list below, record responses against

best fit] (20 maximum responses)

1 The effort required compared to all the demands on our time

2 The cost

3 Knowing which market to focus on next

4 Foreign customers prefer doing business with local firms in their market, so will

not be interested in imported goods or services

5 Finding the additional management time

6 Finding appropriately skilled staff to take exporting forward

7 Obtaining basic information about doing business abroad

8 Understanding overseas market structures/ lack of market knowledge

9 Understanding how to best tailor their products or services to meet overseas

market needs

10 Establishing dialogue with prospective customers or business partners

11 Engaging agents or distributors to promote our products/services

12 Building relationships with key influencers or decision-makers

13 Negotiating the culture and language

14 Access to local market regulation and standards



17 Protecting our intellectual property

18 Ensuring we get paid and enforcing contracts

19 Dealing with customs procedures or paperwork

20 Safeguarding existing business


Q18Other

Appendices

Page 81

Q19. Has your business accessed any support to help with your exporting

requirements?

1 Yes

2 No If = 2, do not ask 'Q21Other'





Q20. What was this support? [Do not immediately read out list below, but use

as prompts if necessary] (9 maximum responses)

1 Access to funding

2 Information on assessing whether exporting is appropriate for my company

3 Information on getting started

4 Seminars/workshops/information on the key aspects of exporting such as:

researching markets, selling, export documentation, getting paid, protecting your intellectual

property etc

5 Access to British Embassies/Consulates overseas

6 Access to market research /market intelligence from overseas markets

7 Attendance on trade missions

8 Access to subsidised export guarantees/financing


Q20Other

Q21. Which organisation(s) did you access support from? [Do not


1 Private sector consultancy firm

2 Government Organisation (including Department for International Trade [DIT],

formerly UK Trade & Investment [UKTI])

3 Chamber of Commerce

4 Professional Services (banks, law firm, accountants etc.)

5 Trade Association


Appendices

Page 82

Q21Other

Q22. How satisfied were you with this support?

1 Very dissatisfied

2 Dissatisfied

3 Neither satisfied or dissatisfied

4 Satisfied

5 Very satisfied

Q23. Would you like any !!On(Q19has{1}, "further","")!! support to find

new overseas customers/access new overseas markets?

1 Yes

2 No If = 2, do not ask 'Q24'


Q24. Through what format would your business prefer to receive business

support? [Do not immediately read out list below, but use as prompts if

necessary] (9 maximum responses)

1 Online & digital resources and information

2 Seminars or workshops on specific export topics

3 Access to 1-1 face to face guidance, mentoring and support

4 Access to 1–1 guidance, mentoring and support via web chat on a website

5 Access to 1-1 guidance, mentoring and support via the telephone/skype

6 Networking events

7 Access to peer groups

8 Contact with specialist firms offering export support on a paid for basis


Q24Other

Appendices

Page 83

Q25. Have you used the Exporting Is Great website (great.gov.uk)?

1 Yes



Q26. What did you primarily use it for? [Do not immediately read out list

below, but use as prompts if necessary]

1 Download export opportunities

2 Access information on exporting

3 Contact your local trade team

4 Access to E-marketplaces overseas


Q26Other

Q27. Lastly, a quick question about importing. Over the next three years,

which of the following markets, if any, does your business plan to start or

continue importing from? READ OUT (11 maximum responses)

1 Africa

2 Asia-Pacific

3 China


5 Europe

6 Latin America

7 Middle East

8 North America

9 South Asia



BELOW If = 11, Only ask 'Q27_Open'

Appendices

Page 84


Section 3: Non-exporters

Q28. Why do you want to export? [Do not read out list below, record

responses against best fit] (19 maximum responses)

1 It’s part of our overall growth strategy

2 It is needed to make us more resilient to domestic downturns

3 We are aware of potential customers overseas

4 While it’s not core we see it as a useful development

5 We anticipate reacting to export opportunities as they arise

6 Reducing risk

7 Increased competitiveness

8 Increased business productivity

9 Innovation and new product development

10 Co-operate with other businesses

11 Business survival

12 Faster business growth

13 Increased business sustainability

14 Improved reputation, credibility and profile

15 Increased profitability

16 Increased turnover

17 Access to more customers

18 It is stimulating for the company and staff


Q28Other

Q28a. What are the key factors influencing your business’s export strategy

over the next three years? DO NOT READ OUT (11 maximum responses)

1 Increased demand from buyers

2 Exchange rates

3 Existence of Free Trade Agreements

4 Greater awareness of these markets

Appendices

Page 85

5 Existing customer moved or expanded into a new market

6 Advice received from DIT

7 The UKs withdrawal from the EU

8 To benefit from economies of scale

9 Excess capacity within the business


11 Don’t know If = 10, Only ask 'Q28a_Other'

Q28a_Other

Q29. What would you identify as the main factors holding back your

company from getting started in generating export business? [Do not read out

list below, record responses against best fit] (17 maximum responses)

1 Finding customers

2 Market knowledge

3 Marketing and product promotion

4 Don't know how to start

5 Previous attempts were unsuccessful

6 Worries about getting paid

7 Worries about people stealing our ideas and intellectual property

8 Worried about exchange rates

9 Don't know if there is demand for our goods and service

10 Concerned that exporting is only for large companies

11 Don't know how to find customers or sell in foreign markets

12 Local regulation and standards



15 Worries about foreign languages

16 Worries about sufficient time


Q29Other

Appendices

Page 86

Q30. What would enable or encourage your business to export? [Do not


1 Greater access to overseas distributors and partners

2 Increased funding and support

3 Information on assessing whether exporting is appropriate for my company

4 Information on getting started

5 Seminars/workshops/information on the key aspects of exporting such as:

researching markets, selling, export documentation, getting paid, protecting your intellectual

property etc.

6 Access to support from British Embassies/Consulates overseas.



9 Access to funding

10 Networking opportunities with existing exporters

11 Access to subsidised export guarantees/financing


13 None of the above If = 12, Only ask 'Q30Other'

Q30Other

Q31. Which overseas markets are your company interested in starting to

export to? [Do not read out list below, record responses] (20 maximum responses)

1 Algeria

2 Argentina

3 Australia

4 Austria

5 Bahrain

6 Belgium

7 Brazil

8 Canada

9 Chile

10 China

11 Colombia

12 Croatia

13 Czech Republic

14 Denmark

15 Finland

16 France

17 Germany

18 Greece

Appendices

Page 87

19 Hong Kong

20 Hungary

21 India

22 Indonesia

23 Iran

24 Irish Republic

25 Israel

26 Italy

27 Japan

28 Kuwait

29 Malaysia

30 Mexico

31 Netherlands

32 New Zealand

33 Norway

34 Poland

35 Portugal

36 Qatar

37 Russia

38 Saudi Arabia

39 Serbia

40 Singapore

41 South Africa

42 South Korea

43 Spain

44 Sweden

45 Switzerland

46 Taiwan

47 Thailand

48 Turkey

49 UAE

50 USA


Q31Other

Appendices

Page 88

Q32. Are you aware of any channels of support available for businesses who

want to start exporting?

1 Yes

2 No

Q33. Would you be interested in accessing business support?

1 Yes



If = 2, do not ask 'Details2'

Please could I take down your contact details so somebody can contact

you about business support?

Name

Email

Telephone

Appendices

Page 89

Q34. Through what format would your business prefer to receive business

support? [Do not immediately read out list below, but use as prompts if

necessary] (11 maximum responses)

1 Online & digital resources and information

2 Seminars or workshops on specific export topics

3 Access to 1-1 face to face guidance, mentoring and support

4 Access to 1–1 guidance, mentoring and support via web chat on a website

5 Access to 1-1 guidance, mentoring and support via the telephone/skype

6 Access to support from British Embassies/Consulates overseas



9 Networking events

10 Contact with specialist firms offering export support on a paid for basis


Q34Other

Q35. Have you used the Exporting Is Great website (great.gov.uk)?

1 Yes



Q36. What did you primarily use it for? [Do not immediately read out list

below, but use as prompts if necessary]

1 Information for ‘New to Exporting’ companies

2 Download Export Opportunities

3 Contact your local trade team

4 Access to E-marketplaces overseas


Q36Other

Appendices

Page 90

Q37. What was the turnover of your company in the last financial year?

[Read out options below; do not push if respondent is disinclined to answer]

1 £0-£499,000

2 £500,000-£4.9m

3 £5m-£49m

4 £50m+

5 Refused

Q38. Lastly, a quick question about importing. Over the next three years,

which of the following markets, if any, does your business plan to start or

continue importing from? READ OUT (11 maximum responses)

1 Africa

2 Asia-Pacific

3 China


5 Europe

6 Latin America

7 Middle East

8 North America

9 South Asia



BELOW If = 11, Only ask 'Q38_Open'


Close

Finally, have you been happy with the way this interview has been conducted?

1 Yes

2 No

Appendices

Page 91

Comments

Thank and close

Interviewer name

RECORD THE FOLLOWING DETAILS:

Start time of interview

If True, set 'Now' to question 'FinishTime'

Interview finish time (time when you arrive at this screen)

Duration of Interview (minutes)

This is the end of the questionnaire.

If you need to, go back and make any changes now.

If you are happy with this survey and are ready to move onto the next survey, press the green

forward arrow.

Appendices

Page 92

If you are due to go out on your break or finish your shift, tick the "pause" box and press the

green forward arrow.

IF THIS WAS A COMPLETION DO NOT USE THE RED X TO EXIT!!!

Complete

1 Complete

2 Test If = 2, goto 'End' (and do not keep the questionnaire)

Thank and close

Unfortunately, the business doesn't fall within the criteria needed to complete the survey. Thank

you for your cooperation to this point.

research report · 16 hours ago · non-exporters are estimated to make up 1% of firms employing...

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