In a letter to exports minister Gareth Thomas, Chartered Institute of Export & International Trade director general Marco Forgione has called for increased access to customs training and more support for women-led businesses aiming to export, particularly SMEs.
Writing ahead of the publication of new government strategies on trade and small business, Forgione says that consultation conducted with women in trade by the Chartered Institute has suggested that there are areas for improvement that could boost UK economic performance. Scottish trade alone could benefit to the tune of £10.3bn, he said, citing research by the Scottish government published earlier this year.
“With only 15% of small and medium-sized enterprises employers across the UK estimated to be led by women (18% if without employees),” Forgione says, “there are clearly also barriers with women being able to start a business, let alone begin exporting.”
Accessing support
The unique challenges and additional responsibilities faced by women make the “creation and growth phase” particularly difficult for women-led businesses, and they often face difficulties accessing finance. Forgione writes:
“Traditional banks and lenders often favour businesses with longer trading histories and strong collateral, placing newer or niche businesses at a disadvantage. This particularly affects those businesses led by women and/or other under-served groups such as ethnic minorities.”
This makes it especially tough to become “financially stable at the beginning of a company’s export growth journey”. The best way to engage with new markets and achieve that export growth, he notes, is through in-person interactions, and Forgione calls for an increase in “digital trade missions” as an alternative avenue for women leading SMEs to grow their export business.
Resources
The existing resources available to women in trade are many – from e-learning opportunities to finance. But “there appears to be a significant gap in awareness” about some of these options that remains to be addressed, says Forgione.
“Many women entrepreneurs either do not know enough about the options, and how to find them, or it is not clearly explained how to effectively utilise the opportunities that are available.”
This, he argues, can mean funding remains unused due to lack of awareness, rather than a lack of need.
There is also a need for “more customs training” in the export community, particularly for young people entering trade as a career, Forgione emphasises. Within education, e-learning can be a “vital mechanism” to “support the flexibility requirements” of exporting firms led by women.
In terms of support resources, the ‘Export Champions’ programme was praised in the Chartered Institute’s consultation with business. Forgione notes that it was identified as a “positive initiative”, adding that “there is a strong argument that there should be both an increased number of champions and increased utilisation of these champions”. Peer mentors who have faced their own trade struggles could also help to place the challenges faced by women-led exporters in context, he notes.
Business Growth Service
The government’s Business Growth Service, currently in development, should “enhance outreach to actively engage with under-served communities, especially women”, according to one suggestion received by the Chartered Institute. There were also calls for a “personalised life-cycle based approach to the service”, with support designed to meet businesses where they are “in their lifecycle”.
It's also important that the service integrates clearly with other support options, with Female Founder Finance given as a model of “clear and tailored information”. “Likewise,” Forgione says, “the E-Commerce Trade Commission is creating a specific resource hub for businesses at different stages of their export journey, who might need support with exporting online.”
Regulations
The letter also addresses some of the regulatory issues faced by women in trade.
“VAT returns are particularly cumbersome post-Brexit,” Forgione argues, noting “the time and cost difficulties faced by the need to appoint responsible economic operators (REOs) in the EU and Northern Ireland”.
There is also a need to consult closely with small business owners and women in trade when formulating a response to significant new regulation that is being developed, such as the EU General Product Safety Regulations (GPSR).
“A suggestion from one business was that, when new regulations are implemented and DBT seeks to communicate these out to the business community, they could utilise women who have experience in trade to help in walking other businesses through the practicalities of implementation.
“The insights of these women with long-held experience is also crucial for testing and understanding how new policies will work at the grassroots level and ensuring that others do not lose their livelihoods due to ineffective regulations.”
What works for one sector – or business size – doesn’t necessarily work for all, Forgione says. Some solutions are simply “not always practical for small and micro businesses, when their corporate structure and practice is so different”.
