Women Entrepreneurs Break Boundaries to International Trading
This is a time of particular concern for women with families under real strain and uncertainty in the recession. However, it is also a time when women have the opportunity to play a greater part than ever before in the economy at both a national and international level.
The Women’s Enterprise Task Force (WETF), which was set up by Gordon Brown in 2006 to increase the number of successful, female-run businesses, believes that women’s enterprise can be one of a number of enablers of economic recovery in the UK, not least because of the size of women’s contribution to the UK economy (currently standing at £130 billion per annum).
Exploiting and accessing new markets can help to sustain a business, especially in a recession, says Pam Alexander, Chief Executive of the South East England Development Agency and co-chair of the Women’s Enterprise Task Force: “Research shows that women are less likely to be exporters and tend to have more localised markets, so we need to raise their knowledge and confidence in international trade and encourage them to make the most of international markets. Women’s Enterprise is a vital part of the UK economy, generating £130 billion in Gross Value Added (GVA) each year, so we need to do all we can to support female entrepreneurs to grow their businesses further through international trade and investment.”
South East England Development Agency (SEEDA) Women’s Enterprise Advocate, Penny Bailey, runs a successful business in the IT sector, Bailey Solutions library and information systems, which in just four years, has grown to a turnover of £400,000. Now trading to international clients, her entrepreneurship continues to grow her company in increasingly tough times. She has successfully achieved business in North America, with international agencies and solicitors in Europe and with international companies with UK bases. A
s a first-timer to the export business, Penny found the UK Trade & Investment’s (UKTI) ‘Passport to Export’ programme a great help in highlighting areas to thoroughly research before approaching clients overseas. Penny has also benefited from grants totalling nearly £5,000 through the programme, which have funded a trade mission to Dubai, a solo mission to a trade exhibition in the US and extensive market research. “I am thrilled with the growth my company has seen through international trade”, says Penny. “We have more than doubled our international trade since making the initial decision to target the overseas market, increasing our international turnover from 5 to 13%.”
Fellow SEEDA Women’s Enterprise Advocate, Anne Duncan, is also growing her business through accessing international channels. Anne is at the helm of Yellowfin, an innovative company, pioneering an advanced propulsion system for motor boats and marine craft. Anne’s drive and commitment has helped her to create an enterprise with global appeal. “My experience has taught me the importance of conducting thorough market research,” explains Anne, “not only to identify whether products are applicable to international markets, but also to discover possible legislation surrounding the exporting of products overseas.”
As Yellowfin’s advanced propulsion system is globally relevant to the marine engineering sector, Anne has built up a network of international distributors. The marine market does not deal in direct sales, so Anne takes advantage of distributors who know how their market works, the language and customs of conducting business in each country and the relevant import taxes and legislation.
Although she recognises that the global recession makes conducting business more difficult, international trading during this time does hold some positive opportunities for Anne, which can also encourage all ambitious entrepreneurs: “Spreading your business across different markets is a good idea in these harder times as it can offer you the protection of a buoyant market. With currencies devaluing at different rates, it is possible to use that to advantage.”
For those trading in the UK, SEEDA Women’s Enterprise Advocate Alice Edgcumbe-Rendle and Ambassador Ida Horner, both offer examples of successful businesses relying on international suppliers. Alice stepped up to the leadership of Edgcumbes tea and coffee merchants in 1986 and grew her husband and father-in-law’s five-year-old company to become a leader in its market. The company relies on international suppliers and imports ingredients from all over the world.
Alice has always felt strongly about choosing ethical suppliers, including products supported by Fairtrade, The Rainforest Alliance and Cup of Excellence. In her local area, Alice has found Sussex Enterprise to offer great support to small businesses. “Sussex Enterprise’s strong international division would be a great place to start if you are looking to expand your business overseas. It organises trade fairs, offers one-to-one advice and can point you in the right direction to access grants.”
Ida also runs an ethically-minded company, Ethnic Supplies. Having visited the South West part of her native Uganda in December 2006, Ida witnessed poverty which prompted her to quit her job as a Housing Manager for a London council to set up Ethnic Supplies Ltd., a social enterprise specialising in African handicrafts, textiles, art and crafts from East Africa.
Ida’s whole business plan rests on international trade and she relishes dealing with women who would otherwise never have the opportunity to sell their products internationally. “My advice to others looking to set up international businesses is to network as much as possible with people from the country where you intend to trade. Most countries have High Commissions and Ambassadors in the UK, which can provide an invaluable source of information.”
International trade enables business women to diversify their customer base and to grow their businesses. This increases job and wealth creation and generates additional tax revenue for the government. It also helps women-owned businesses to weather the economic downturn by providing access to wider markets that are open to new ideas, products and technologies.