Member Article

Exporters to growth ‘BRIC’ countries facing obstacles

88% of businesses in the latest British Chambers of Commerce survey sell their products to the EU, while just 47% export to countries such as Brazil, Russia, India and China (BRIC).

The BCC have published their Exporting is Good for Britain but Market Barriers Stifle Opportunities report, which surveyed more than 8,000 businesses.

Nearly three-quarters of large exporters trade with BRIC countries, but only a third of micros are engaged in these large and fast-growing markets.

The research also found that around two-thirds of large exporters see the BRIC economies as a top platform for export growth in the next 12 months, compared to around half of mediums, and third of micros.

StartUp Britain co-founder Emma Jones said: “We recognise that exporting to India and other emerging economies is a real opportunity for start-ups and growing businesses.

“There has never been a better time for entrepreneurs to take products or services to new markets. Technology and lower distribution costs are opening up the world to bright and nimble businesses.

Exporters perceive ‘external’ barriers to market entry and to increasing sales volumes to exist across all export destinations.

The findings pointed towards exporters to BRIC countries as the most likely to report experience of market barriers that constrain sales.

63% of businesses that export to the fast-growing BRIC economies claim to experience at least one barrier that constrains sales.

Among the recommendations from the BCC was full implementation of the EU’s Single Market Act, so that UK businesses benefit from a deeper and wider single European market.

Opening up free trade agreements with other countries was also identified, as was re-establishment of foreign languages as core subjects within the UK national curriculum and in workplace training.

This was posted in Bdaily's Members' News section by Tom Keighley .