## Uk Trade & Investment 2011 Non-User Survey (Pims) Main Report July 2011 Jn: 4282

 

## Contents

1. 
Executive Summary .......................................................................................... 1 
1.1 *Introduction ...................................................................................................... 1* 1.2 *Summary Results............................................................................................. 2* 
2. 
Background & Objectives 
................................................................................. 9 
3. 
Methodology .................................................................................................... 10 
4. 
Profile Of Participants 
..................................................................................... 12 
4.1 *Age Of Business ............................................................................................ 12* 
4.2 *Size Of Business............................................................................................ 14* 4.3 *Turnover ........................................................................................................ 16* 4.4 Industry Sector 
............................................................................................... 18 
4.5 Company Status & Ownership 
....................................................................... 20 
4.6 Management Profile 
....................................................................................... 22 
4.7 Business Strategy 
.......................................................................................... 23 
4.8 *Innovation ...................................................................................................... 26* 4.9 *Growth ........................................................................................................... 40* 
5. 
Export Strategy 
................................................................................................ 45 
5.1 *Export Volume ............................................................................................... 45* 5.2 *Length Of Time Exporting .............................................................................. 50* 5.3 Number Of Markets 
........................................................................................ 51 
5.4 *Overseas Regions ......................................................................................... 56* 
5.5 *Use Of Agents/Distributors ............................................................................ 57* 5.6 Changes In Overseas Strategy 
...................................................................... 58 
5.7 *Changes To Products & Services .................................................................. 60* 
6. 
Motivations For Exporting .............................................................................. 63 
6.1 *Summary ....................................................................................................... 63* 6.2 Individual Motivations 
..................................................................................... 67 
7. 
Barriers To Overseas Trade ........................................................................... 73 
7.1 *Summary ....................................................................................................... 73* 
7.2 *Individual Barriers .......................................................................................... 76* 
 
8. 
UKTI Support: Awareness & Alternatives ..................................................... 90 
8.1 *Awareness Of UKTI ....................................................................................... 90* 
8.2 *Awareness & Interest In UKTI Services ......................................................... 91* 8.3 *Use Of Non-UKTI Support ............................................................................. 96* 8.4 *Supported Non-Users .................................................................................... 98* 8.5 Unsupported Non-users 
............................................................................... 100 
9. 
Quality Of Support......................................................................................... 103 
9.1 *Quality Rating - Measure A09 ..................................................................... 103* 
9.2 *Individual Quality Ratings ............................................................................ 105* 
11. Impacts & Outcomes 
..................................................................................... 111 
11.1 Increased Skills - Measure A81 
................................................................ 111 
11.2 *Changed Behaviour - Measure A83 ........................................................ 115* 11.3 Increased Innovation - Measure A04 
....................................................... 121 
11.4 *Barriers To Market Access Overcome - Measure A92 ............................ 123* 11.5 *Increased Sales........................................................................................ 128* 11.6 Improved Productivity & Competitiveness - Measure A06 
....................... 131 
11.7 *'Light Touch' Support ............................................................................... 133* 
12. **Economic Climate ......................................................................................... 134** 
12.1 Sustained Economic Growth Or Increasing Demand Overseas 
............... 134 
12.2 Sterling Exchange Rates 
.......................................................................... 136 
12.3 Export Credit Insurance 
............................................................................ 137 
Annex A - Questionnaire 
..................................................................................... 138 

 

## 1. Executive Summary 1.1 Introduction

This s ummary out lines t he k ey f indings from t he telephone survey c onducted amongst non-users of UKTI trade development products and services.  The primary research objectives are to provide evidence on usage of non-UKTI export support, measure the extent to which firms encounter barriers which give rise to the need for such se rvices, i nvestigate at titudes t owards s upport am ongst t hose firms n ot accessing it, explore the impact of the recent economic conditions on export activity, and provide data on the profile of non-user firms (including comparisons with UKTI 
users). The r esearch w as c onducted by  O MB R esearch in M arch a nd A pril 2011.  A  
telephone m ethodology was employed, with in terviews conducted us ing Computer Assisted Telephone Interviewing (CATI) and lasting an average of 20 minutes. The sample of firms covered by this survey consisted of firms that had ex ported in the l ast 2 y ears ( or s eriously c onsidered doi ng s o) bu t ha d not o btained any assistance from UKTI.  T he sample was stratified by age of firm (those established up to 5 years, 6-10 years and over 10 years) in order to achieve a robust number of interviews with each of these groups, and the final data has been weighted back to the age profile of all UK exporters. A random sample of UK firms was sourced from Experian and 'screening' questions were included at the start of the questionnaire to exclude any firms that did not export (and had not tried to in the last 2 years) or that had received UKTI support. In addition to the above, comparative data has also been provided for users of UKTI from t he main P IMS s urveys, t he P IMS follow-up s urveys an d the 2011 
Internationalisation Survey. Where base sizes are low (i.e. when looking at supported and unsupported non-users) the 2011 non-user data has been combined with data collected in the 2010 survey. The following t able s hows t he number o f i nterviews c ompleted al ong w ith t he associated response and refusal rates. 


 
 
Interviews achieved  
300 
Response rate 
27% 
Refusal rate 
41% 

 

## 1.2 Summary Results 1.2.1 Profile

The table below provides a s ummary of the profile of the non-users covered by this research, al ong w ith c omparative d ata for users o f U KTI support ( from t he main PIMS research). 


|                             |       |       |       | Non-Users (2011)    | Users (PIMS 20-23)    |
|-----------------------------|-------|-------|-------|---------------------|-----------------------|
| 0-5                         | 6-10  | >10   | 0-5   | 6-10                | >10                   |
| Total                       | years | years | years | Total               | years                 |
| old                         | old   | old   | old   | old                 | old                   |
| Base                        | 300   | 99    | 100   | 101                 | 3945                  |
| Size: <10 staff             | 66%   | 88%   | 74%   | 57%                 | 39%                   |
| Size: 50-249 staff          | 9%    | 3%    | 6%    | 12%                 | 17%                   |
| Size: 250+ staff            | 3%    | 1%    | 2%    | 4%                  | 13%                   |
| Turnover: <£500k            | 52%   | 66%   | 63%   | 45%                 | 29%                   |
| Turnover: £10M+             | 8%    | 4%    | 7%    | 9%                  | 19%                   |
| Sector: Production          | 25%   | 19%   | 26%   | 27%                 | 39%                   |
| Sector: Services            | 73%   | 71%   | 72%   | 73%                 | 59%                   |
| Innovative                  | 63%   | 59%   | 69%   | 62%                 | 83%                   |
| Innovative (alternative)    | 34%   | 29%   | 35%   | 35%                 | 64%                   |
| IP active                   | 17%   | 11%   | 19%   | 18%                 | 38%                   |
| Planned growth: substantial | 25%   | 40%   | 31%   | 18%                 | 43%                   |
| Planned growth: substantial |       |       |       |                     |                       |
| or moderate                 |       |       |       |                     |                       |
| 78%                         | 90%   | 80%   | 74%   | 89%                 | 87%                   |
| Innovative high growth      |       |       |       |                     |                       |
| 20%                         | 26%   | 24%   | 16%   | 38%                 | 44%                   |
| Skilled owners/directors    | 59%   | 62%   | 68%   | 55%                 | 73%                   |
| Current business plan       | 42%   | 47%   | 37%   | 43%                 | 71%                   |

 Non-user firms t end t o be s maller t han us ers of  U KTI s upport (both i n t erms of employee numbers and turnover) and are also more likely to be in the service sector. Non-users ar e al so significantly l ess innovative t han U KTI users and are l ess ambitious in terms of their growth objectives.  Whilst they are therefore less likely to be classified as 'innovative high growth' firms, it is worth noting that a fifth of nonusers d o fall i nto this group a nd as  s uch ar e t he t ype o f c lients that U KTI s hould ideally be supporting. UKTI users are more likely to have degree-level members of the management team and also appear to be more strategic, in the sense that they are much more likely to have a current business plan. The differences between users and non-users outlined above are evident across all ages of firm.  Although not shown above, it is worth noting that supported non-users 
(i.e. those that have accessed some form of non-UKTI export support) are closer in profile t o U KTI us ers i n t hat they t end t o be l arger t han uns upported non-users, display greater levels of innovation and have more ambitious growth objectives. 

## 1.2.2 Export Experience

The table below provides a summary of  the overseas experience of the non-users covered by this research, along with comparative data for users of UKTI support. 

 

|                            | Non-Users (2011)    | Users (PIMS 20-23)   |
|----------------------------|---------------------|----------------------|
| 1                          |                     |                      |
|                            |                     |                      |
| 0-5                        | 6-10                | >10                  |
| years                      | years               | years                |
| Total                      | Total               |                      |
| old                        | old                 | old                  |
| Base                       | 300                 | 99                   |
| Time: <2 yrs               | 26%                 | 62%                  |
| Time: 2-10 yrs             | 44%                 | 38%                  |
| Time: >10 yrs              | 28%                 | -                    |
| % of turnover: 10% or less | 64%                 | 70%                  |
| % of turnover: 11-50%      | 17%                 | 18%                  |
| % of turnover: Over 50%    | 15%                 | 8%                   |
| Markets: 5 or less         | 71%                 | 72%                  |
| Markets: 6-20              | 21%                 | 22%                  |
| Markets: Over 20           | 8%                  | 6%                   |
| Regions: EU                | 68%                 | 60%                  |
| Regions: North America     | 34%                 | 34%                  |
| Regions: Other countries   | 50%                 | 45%                  |

 UKTI users are slightly more experienced than non-users when it comes to the length of t ime t hey hav e been doi ng bus iness ov erseas.  T hey ar e al so more ' intensive' exporters, in the sense that overseas sales account for a g reater proportion of their total turnover, they tend to be doing business in more markets and are more likely to be active in each of the 3 broad regions of the world (i.e. the EU, North America and elsewhere). As seen with t he ot her profile variables, supported non-users (i.e. t hose t hat have accessed some form of non-UKTI export support) are closer to UKTI users when it comes to their export experience.  They tend to be active in more markets and report higher overseas sales than unsupported non-users.   
 
Markets: Total (300), 0-5 years (99), 6-10 years (100), >10 years (99) 
Regions: Total (248), 0-5 years (46), 6-10 years (76), >10 years (126) 

## 1.2.3 Export Motivations

Non-user firms w ere r ead out a l ist o f possible export m otivations and as ked t he extent to which each one applied to them.  The table below shows the proportions of non-user firms agreeing that they did business overseas for each of these reasons, along with comparative data for users of UKTI support. 

|                            |       |       |       | Non-Users (2011)    | Users (PIMS 20-23)    |
|----------------------------|-------|-------|-------|---------------------|-----------------------|
| 0-5                        | 6-10  | >10   | 0-5   | 6-10                | >10                   |
| Total                      | years | years | Years | Total               | years                 |
| Proportion agreeing (4-5   |       |       |       |                     |                       |
| out of 5) that they        |       |       |       |                     |                       |
| export for the following   |       |       |       |                     |                       |
| reasons…                   |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |
| old                        | old   | old   | old   | old                 | old                   |
| 99                         | 100   | 101   | 3945  | 952                 | 664                   |
| Base                       |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |
| 300                        |       |       |       |                     |                       |
| (99)                       |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |
| (61)                       |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |
| (19)                       |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |
| (19)                       |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |
| (998)                      |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |
| (619)                      |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |
| (162)                      |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |
| (217)                      |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |
| 48%                        |       |       |       |                     |                       |
| 53%                        | 52%   | 45%   | 79%   | 80%                 | 78%                   |
| To achieve a level of      |       |       |       |                     |                       |
| growth otherwise not       |       |       |       |                     |                       |
| possible                   |       |       |       |                     |                       |
| To more fully utilise your |       |       |       |                     |                       |
| existing capacity          |       |       |       |                     |                       |
| 52%                        |       |       |       |                     |                       |
| 53%                        | 52%   | 52%   | 60%   | 57%                 | 56%                   |
| 31%                        |       |       |       |                     |                       |
| 28%                        | 27%   | 34%   | 49%   | 45%                 | 48%                   |
| To reduced your            |       |       |       |                     |                       |
| dependence on the UK       |       |       |       |                     |                       |
| market                     |       |       |       |                     |                       |
| To improve your profile or |       |       |       |                     |                       |
| credibility                |       |       |       |                     |                       |
| 41%                        |       |       |       |                     |                       |
| 46%                        | 47%   | 38%   | 63%   | 66%                 | 65%                   |
| 67%                        |       |       |       |                     |                       |
| 69%                        | 69%   | 66%   | 61%   | 59%                 | 59%                   |
| You keep receiving         |       |       |       |                     |                       |
| orders/enquiries from      |       |       |       |                     |                       |
| overseas customers         |       |       |       |                     |                       |
| 23%                        |       |       |       |                     |                       |
| 33%                        | 16%   | 16%   | 30%   | 36%                 | 22%                   |
| If exporting < 2years:     |       |       |       |                     |                       |
| You                        |       |       |       |                     |                       |
| had personal connections   |       |       |       |                     |                       |
| overseas or a desire to    |       |       |       |                     |                       |
| travel abroad              |       |       |       |                     |                       |
|                            |       |       |       |                     |                       |

There are a number of differences in the export motivations of UKTI users and nonusers, with the former significantly more likely to be influenced by more proactive or strategic r easons (e.g. enabling g rowth, r educing depe ndence o n t he U K m arket, improving their profile).  Non-users, on the other hand, are more likely to highlight customer orders/enquiries as a reason for doing business overseas, and this is the most common motivation amongst this group by some distance.  This indicates that non-users of UKTI are more reactive in their approach to exporting. 

## 1.2.4 Barriers To Overseas Trade

Non-user firms were read out a list of issues that they may have had to tackle when trying to develop the export side of their business and asked to indicate the extent to which each was a di fficulty that they had encountered.  T hese barriers have been summarised i nto seven themes: ' legal &  r egulatory', 'customs', 'contacts', 
'information', ' resource', 'language &  c ultural' and ' bias' barriers.  The t able b elow shows t he proportions o f non-user f irms ex periencing e ach o f t hese barriers to a significant extent, along with comparative data for users of UKTI support (from the Internationalisation Survey). 

|                          |       |       |       | Non-Users (PIMS 2011)    | Users (2011 Internationalisation)    |
|--------------------------|-------|-------|-------|--------------------------|--------------------------------------|
| 0-5                      | 6-10  | >10   | 0-5   | 6-10                     | >10                                  |
| Total                    | years | years | Years | Total                    | years                                |
| Proportion experiencing  |       |       |       |                          |                                      |
| significant difficulties |       |       |       |                          |                                      |
| (4-5) with...            |       |       |       |                          |                                      |
| old                      | old   | old   | old   | old                      | old                                  |
| Base                     |       |       |       |                          |                                      |
|                          |       |       |       |                          |                                      |
| 300                      |       |       |       |                          |                                      |
|                          |       |       |       |                          |                                      |
| 99                       |       |       |       |                          |                                      |
|                          |       |       |       |                          |                                      |
| 100                      |       |       |       |                          |                                      |
|                          |       |       |       |                          |                                      |
| 101                      |       |       |       |                          |                                      |
|                          |       |       |       |                          |                                      |
| 242                      |       |       |       |                          |                                      |
|                          |       |       |       |                          |                                      |
| 43                       |       |       |       |                          |                                      |
|                          |       |       |       |                          |                                      |
| 74                       |       |       |       |                          |                                      |
|                          |       |       |       |                          |                                      |
| 125                      |       |       |       |                          |                                      |
|                          |       |       |       |                          |                                      |
| At least 1 sig. barrier  |       |       |       |                          |                                      |
| 46%                      |       |       |       |                          |                                      |
| 54%                      | 46%   | 44%   | 83%   | 84%                      | 77%                                  |
| - Legal & regulatory     |       |       |       |                          |                                      |
| 22%                      |       |       |       |                          |                                      |
| 27%                      | 22%   | 20%   | 51%   | 56%                      | 53%                                  |
| - Customs                |       |       |       |                          |                                      |
| 14%                      |       |       |       |                          |                                      |
| 10%                      | 12%   | 16%   | 30%   | 30%                      | 36%                                  |
| - Contacts               |       |       |       |                          |                                      |
| 20%                      |       |       |       |                          |                                      |
| 26%                      | 22%   | 17%   | 46%   | 42%                      | 42%                                  |
| - Information            |       |       |       |                          |                                      |
| 13%                      |       |       |       |                          |                                      |
| 18%                      | 11%   | 12%   | 18%   | 16%                      | 22%                                  |
| - Resource               |       |       |       |                          |                                      |
| 15%                      |       |       |       |                          |                                      |
| 17%                      | 17%   | 14%   | 29%   | 30%                      | 26%                                  |
| - Language & cultural    |       |       |       |                          |                                      |
| 9%                       |       |       |       |                          |                                      |
| 14%                      | 6%    | 8%    | 23%   | 16%                      | 20%                                  |
| - Bias                   |       |       |       |                          |                                      |
| 9%                       |       |       |       |                          |                                      |
| 15%                      | 6%    | 9%    | 26%   | 28%                      | 23%                                  |
| No sig. barriers         |       |       |       |                          |                                      |
| 54%                      |       |       |       |                          |                                      |
| 46%                      | 54%   | 56%   | 17%   | 16%                      | 23%                                  |

 The ab ove t able demonstrates that firms r eceiving s upport f rom U KTI ar e consistently more likely to have encountered barriers to overseas trade, and this is true irrespective of the age of the firm.  Overall, 83% of users have encountered at least one  significant barrier, c ompared t o only 46% o f non -users, s uggesting t hat firms that do not encounter significant barriers are considerably less likely t o seek external export assistance.  This hypothesis is backed up by the fact that those nonusers that have received some form of (non-UKTI) export assistance are also more likely to have experienced barriers than unsupported non-users. Amongst both users and non-users of UKTI support, t he most widely encountered barriers are 'legal & regulatory' and 'contacts' barriers (i.e. m aking and developing contacts overseas). It i s al so i nteresting t o no te t hat, a mongst non-users, y oung firms t hat hav e b een established for 5 y ears or less are most likely to experience barriers, implying that this group could benefit most from the types of services that UKTI provide. 

## 1.2.5 Ukti Support: Awareness & Alternatives

Non-user firms were asked whether they were aware that UKTI provide assistance to help UK firms do business overseas, and were also read out descriptions of several UKTI services and asked whether they had heard of them. 

 
 
Non-Users (2011) 

| Total                       | 0-5 years old    | 6-10 years old    | >10 years old    |
|-----------------------------|------------------|-------------------|------------------|
| Base                        | 300              |                   |                  |
| 99                          | 100              | 101               |                  |
| UKTI                        | 37%              | 34%               | 38%              |
| OMIS                        | 18%              | 14%               | 15%              |
| ITAs                        | 22%              | 17%               | 20%              |
| UKTI export events/seminars | 44%              | 34%               | 40%              |

 Awareness of UKTI is not particularly high amongst non-users, with only just over a third indicating t hat t hey knew t hat UKTI pr ovide as sistance t o h elp U K firms d o business overseas.  There is little difference by age of firm in this respect. Approaching a fifth o f firms had he ard of t he O MIS s ervice, w ith a  slightly h igher proportion aw are o f t he s upport av ailable t hrough U KTI's I nternational Trade Advisors.  I nterestingly, when told that UKTI put on events and seminars in the UK that focus on doing business overseas, 44% of firms claimed to have heard of these type of events (although given that this is higher than the overall UKTI awareness figure, it is likely t hat this figure relates to awareness of export-focussed events in general rather than UKTI-organised ones specifically).  Awareness of each of these types of UKTI support increased amongst older firms. Irrespective of whether they had heard of the various UKTI services, non-user firms were r ead out  a br ief des cription of e ach one and asked w hether t hey w ould be interested in using it. 

 
 
Non-Users (2011) 

| Total                       | 0-5 years old    | 6-10 years old    | >10 years old    |
|-----------------------------|------------------|-------------------|------------------|
| Base                        | 300              |                   |                  |
| 99                          | 100              | 101               |                  |
| OMIS                        | 20%              | 32%               | 27%              |
| ITAs                        | 36%              | 45%               | 38%              |
| UKTI export events/seminars | 29%              | 38%               | 33%              |

 As detailed above, a fifth of firms expressed an interest in using the OMIS service, with t his r ising t o ar ound a t hird for the I nternational Trade Advisors an d ex portfocussed events.  Although awareness of the various UKTI services was generally lowest amongst younger firms, this group tend to express more interest in using such services. 

The table below summarises t he proportion of non-user f irms interviewed that had received any  i nformation, advice or  s upport r elating t o exporting from n on-UKTI sources over the previous 2 years. 

 

## Non-Users (2010/11)

| Total      | 0-5 years old    | 6-10 years old    | >10 years old    |
|------------|------------------|-------------------|------------------|
| Base       | 602              |                   |                  |
| 195        | 200              | 207               |                  |
| Yes        | 26%              | 20%               | 20%              |
| No         | 73%              | 80%               | 79%              |
| Don't know | 1%               | 0%                | 1%               |

 A q uarter of n on-user f irms had received some f orm of external export as sistance over the last 2 years, and are therefore classed as 'supported' non-users. The most widely used sources of non-UKTI export assistance were HM Revenue & 
Customs, the Chamber of Commerce, banks and trade associations.  In terms of the substance of the support received, the most common type was information on how to do bus iness ov erseas, f ollowed by  s pecific i nformation a bout overseas business opportunities, information about entering a new market and help identifying overseas contacts.  Only a quarter (27%) of supported non-users indicated that they had paid for any of the export support they had received. 

Those non-users that had not received any export support were asked whether this type assistance would have benefited them, in terms of helping them overcome any difficulties they had experienced while developing the export side of their business. 

 

## Unsupported Non-Users (2010/11)

| Total      | 0-5 years old    | 6-10 years old    | >10 years old    |
|------------|------------------|-------------------|------------------|
| Base       | 460              |                   |                  |
| 156        | 161              | 143               |                  |
| Yes        | 40%              | 45%               | 37%              |
| Maybe      | 7%               | 5%                | 6%               |
| No         | 52%              | 48%               | 56%              |
| Don't know | 1%               | 2%                | 2%               |

 Two-fifths of unsupported f irms felt that some f orm of export as sistance would definitely have been beneficial and, when asked to give details of the specific type of support t hat w ould ha ve hel ped, the most common t ypes w ere adv ice on ex port regulations an d t axes and g eneral i nformation on how t o ex port o r ent er n ew markets.  However, two-thirds of the unsupported non-users that felt support would have been beneficial were *unaware* of anyone that could have provided this, clearly demonstrating that, if awareness of the organisation is increased, there is potential for UKTI to reach and help a significantly greater number of firms. 

Those unsupported non-user firms that did not feel they would have benefited from any external support were asked for their reasons, and the most common responses were that doing business overseas was straightforward and that they already had the required expertise within their company. 

 

## 1.2.6 Key Survey Measures

The table below summarises the proportions of supported non-users scoring against various k ey s urvey m easures relating to t he q uality and  impact of t his s upport. Please note that, with the exception of 'A09 Quality Rating', figures are quoted net of non-additionality.  Comparative dat a has also be en pr ovided for us ers o f U KTI 
support2
. 

|                             |       |       |       | Supported Non-Users (2010/11)    | Users (PIMS 20-23)    |
|-----------------------------|-------|-------|-------|----------------------------------|-----------------------|
| 0-5                         | 6-10  | >10   | 0-5   | 6-10                             | >10                   |
|                             |       |       |       |                                  |                       |
| years                       | years | years | years | years                            | years                 |
| Total                       | Total |       |       |                                  |                       |
| old                         | old   | old   | old   | old                              | old                   |
| Base                        | 127   |       |       |                                  |                       |
|                             |       |       |       |                                  |                       |
| 36                          |       |       |       |                                  |                       |
|                             |       |       |       |                                  |                       |
| 36                          |       |       |       |                                  |                       |
|                             |       |       |       |                                  |                       |
| 55                          |       |       |       |                                  |                       |
|                             |       |       |       |                                  |                       |
| 3945                        |       |       |       |                                  |                       |
|                             |       |       |       |                                  |                       |
| 952                         |       |       |       |                                  |                       |
|                             |       |       |       |                                  |                       |
| 664                         |       |       |       |                                  |                       |
|                             |       |       |       |                                  |                       |
| 2313                        |       |       |       |                                  |                       |
|                             |       |       |       |                                  |                       |
| Key Measures                |       |       |       |                                  |                       |
| A81 - Increased Skills      | 14%   | 25%   | 14%   | 13%                              | 46%                   |
| A83 - Changed Behaviour     | 26%   | 28%   | 19%   | 27%                              | 55%                   |
| A04 - Increased Innovation  | 13%   | 19%   | 14%   | 11%                              | 32%                   |
| A92 - Barriers Overcome     | 30%   | 25%   | 36%   | 29%                              | 60%                   |
| Increased Sales             | 13%   | 14%   | 8%    | 15%                              | 29%                   |
| A06 - Improved Prod. & Comp | 39%   | 31%   | 36%   | 42%                              | 68%                   |
| A09 - Quality Rating        | 52%   | 53%   | 51%   | 52%                              | 78%                   |
| Additionality               |       |       |       |                                  |                       |
| Fully additional            | 9%    | 14%   | 14%   | 7%                               | 26%                   |
| Partially additional        | 44%   | 39%   | 42%   | 45%                              | 54%                   |
| Non-additional              | 47%   | 47%   | 44%   | 47%                              | 21%                   |

 Although the base of supported non-users covered by the research is relatively low 
(even when data is combined from both the 2010 and 2011 surveys), there is clear evidence t hat t he export s upport pr ovided by  U KTI i s m ore e ffective t han t hat delivered by  non -UKTI so urces.  UKTI us ers ar e s ignificantly m ore l ikely t o s core against all of the key impact measures, and this is true across all age groups. It is also notable that almost half of those firms receiving non-UKTI export support judge t his t o h ave b een ' non-additional' ( i.e. they b elieve t hat they w ould h ave achieved s imilar r esults a nyway ev en i f t hey had  n ot obtained the s upport).  In contrast, just 21% of UKTI users classify the assistance as 'non-additional'. The perceived quality of the UKTI support is also considerably higher than that seen for other support providers, with mean quality ratings of 78% and 52% respectively.  
 

## 2. Background & Objectives

This report details the findings of the 2011 PIMS Non-User Survey, which consisted of a telephone survey of exporting firms that have not received any support form UK 
Trade & Investment.  The survey is similar to that conducted in 2010, and data from the 2010 survey has been combined with the new 2011 data to allow more robust analysis where base sizes are low (e.g. when conducting sub-analysis by supported and unsupported non-users). The broad aim of the PIMS Non-User Surveys is to help shed light on the economic rationale for UKTI trade development services, and investigate the following issues: 

- Issues: Rationale for service provision 
o The ex tent of existence o f private s ector a lternatives of c omparable 
scope and quality to UKTI 
o The extent to which businesses encounter barriers which gi ve rise to 
the need for such services, and how these may vary across business groups 
o The extent to which businesses may have differential access to existing 
alternatives and why (e.g. differential access to key networks, service 
providers catering for specific groups such as larger firms, etc) 
- Issues: Rationale for subsidy 
o Businesses don't realise, or don't have confidence, that the benefits of 
using the services will justify the costs (underestimated benefits) 
o Financial c onstraints: a  need t o distinguish b etween r eal financial 
constraints a nd m anagement j udgement t hat t here ar e b etter uses o f resources 
o Wider benefits (e.g. knowledge spillovers) 
 It was therefore dec ided that t he 20 11 PIMS N on-User Survey w ould f ocus o n addressing the following specific objectives: 

- Gather evidence on usage of non-UKTI support services, including the impact 
and effectiveness of these programmes (in a consistent and comparable form to the ongoing PIMS user data) 
- Assess the extent to which businesses encounter barriers which give rise to a 
need for such services 
- Examine the motivations for doing business overseas - Explore attitudes towards support services amongst those non-user firms not 
accessing any forms of external support 
- Measure awareness of, and interest in, certain key UKTI services 
- Explore any impact of the current economic climate 
- Collect non-user profile data, including data on export strategy 

## 3. Methodology

This survey of UKTI non-users employed a t elephone methodology, with interviews conducted u sing C ATI ( Computer A ssisted Telephone I nterviewing).  A ll fieldwork was conducted in March and April 2011, using the same interviewer team that works on the main PIMS user surveys. Interviews lasted an average of 20 minutes, and the questionnaire was fully piloted prior to the start of main fieldwork.  The pilot checked the flow, clarity, relevance and length of the questionnaire as well as the content.  Where appropriate, the questions included i n t he non-user survey replicated t hose as ked i n t he main PIMS us er surveys t o ensure c omparability o f r esults.  A  c opy o f t he final q uestionnaire i s appended to this report. The research was positioned as being on behalf of UK Trade & Investment and the Department for Business, Innovation & Skills, and respondents were informed that it would cover their current export activities and the impact that exporting has had on their business.  Interviewers initially asked to speak to either the owner or the person responsible for t he firm's s trategy i n r elation t o business development a nd t hen further clarification was sought as to whether t he respondent was t he person best qualified to t alk about t heir c ompany's ex port ac tivities, w ith r eferrals t aken as necessary. In order to ensure that the research covered a r epresentative sample of exporters, the sample frame was built from a random sample of UK businesses which was then screened to identify those engaged in overseas business.  T he initial sample frame was s ourced f rom E xperian, and t he s ample w as s tratified by  a ge of  firm (those established up to 5 years, 6-10 years and over 10 years) in order to achieve a robust number of interviews with each of these groups. The final data was then weighted back to the age profile of all UK exporters using Annual Small Business Survey data. In order that the incidence within the sample frame of firms eligible for interview (i.e. engaged in i nternational bus iness ac tivity) w as k ept t o w ithin s ensible l imits, a n approach was taken to the construction of the initial sample frame whereby a s mall number o f i ndustry s ectors with onl y a ve ry small proportion o f f irms i nvolved i n overseas business activity were excluded.  The exclusions were made on the basis of analysis of data from the Community Innovation Survey (CIS) on the incidence of exporting for individual industry sectors by age group3
. 

 
The list of firms sourced from Experian was 'de-duplicated' against known users of UKTI (using a list compiled from all records of supported firms provided for the main PIMS user surveys), to ensure that any firms that had received assistance from UKTI were removed from the sample frame.  As a further precaution, 'screening' questions were included at the start of the questionnaire and the interview was terminated if the firm had not sold any goods or services to overseas customers in the last 2 y ears (and h adn't s eriously c onsidered doing s o) or r evealed t hat t hey had used U KTI services in relation to trade development in the last 5 years. 

 
The following t able s ummarises t he number o f s ample r ecords selected f or CATI 
(following de-duplication against the UKTI user database), the approximate number of records lost due to screening-out or incorrect contact details, and the number of interviews completed along with the associated response and refusal rates. 


## Cati Screening

| Selection for CATI                   | 6,997    |
|--------------------------------------|----------|
| Unusable - do not export             | 4,868    |
| Unusable - user of UKTI services     | 66       |
| Unusable - contact details incorrect | 964      |
| ACHIEVED INTERVIEWS / RESPONSE RATES |          |
| Total useable sample                 | 1,099    |
| Interviews achieved                  | 300      |
| Response rate (%)                    | 27%      |
| Refusal rate (%)                     | 41%      |

 Throughout t his r eport, comparative dat a h as al so bee n shown for us ers of  U KTI 
services, from the following sources: 

- *Main PIMS Surveys:* Users of UKTI's trade development services interviewed 
in the m ain P IMS research, w ith d ata aggregated ac ross P IMS 20-23 
(excluding Website users and ER Events participants). 
- *PIMS Follow-Up Surveys:* Users o f UK TI's trade dev elopment services 
interviewed in t he PIMS f ollow-up surveys, with dat a aggregated across the 
PIMS 16-19 follow-ups (excluding Website users and ER Events participants). 
- *Internationalisation Survey:* UKTI users i nterviewed i n t he 2011 survey o f 
internationalising firms   
 Wherever possible the 'user' dat a has  been taken f rom t he main P IMS s urveys, which involve a l arger sample, but in some cases the relevant questions were only included i n t he P IMS Follow-Up s urveys or  t he Internationalisation S urvey so t he data is taken from these sources instead. For the non-user data, as well as providing a breakdown by age of firm, analysis has also been provided by 'supported' and 'unsupported' non-users.  The definitions of these two non-user sub-groups are as follows: 

- *Supported Non-Users:* Exporting f irms t hat hav e r eceived s ome f orm of 
export-related support from external non-UKTI sources in the last 2 years 
- *Unsupported Non-Users:* Exporting firms that have not received any external 
export-related support in the last 2 years 
 Throughout t his report, any differences referred t o across the various sub-analysis groups detailed a bove are s tatistically s ignificant at t he 9 5% l evel of  c onfidence (unless otherwise stated).  C onfidence intervals have been s hown for all of the key survey measures.  

## 4. Profile Of Participants 4.1 Age Of Business

The chart below shows the profile of the non-user businesses interviewed in terms of the number of years they have been es tablished.  Comparative data has also been provided for users of UKTI support (from PIMS). Base: All respondents (Base, Don't know/Refused, Not yet trading)  
Non-Users - Total (300, 0%, 0%), Up to 5 years old (99, 0%, 0%) 6-10 years old (100, 0%, 0%), Over 10 years old (101, 0%, 0%)  
Users - Total (3945, 0%, 2%), Up to 5 years old (952, 0%, 8%), 6-10 years old (664, 0%, 0%), Over 10 years old (2313, 0%,0%) As detailed earlier, the overall sample frame for the non-user survey was stratified by age to ensure robust coverage of firms aged up to 5 years, firms aged 6-10 and firms more than 10  years ol d.  T he data was t hen w eighted t o t he known pr ofile of internationalising f irms (based on data taken f rom the Annual S mall B usiness Survey), and the overall profile of firms reflects this. Whilst the age profile of UKTI users and non-users is broadly similar, the former are somewhat more l ikely t o be i n t he ol dest bracket ( established for m ore t han 20 years). The following table provides a further breakdown of the non-user age profile by those firms that have received any non-UKTI export s upport ('supported non-users') and those t hat have not ( 'unsupported non-users').  Please n ote t hat t hroughout t his report the data from the 2010 and 2011 non-user surveys have been combined when results are provided for 'supported' and 'unsupported' firms, to allow for more robust analysis at this level. 

 
Total 
Up to 5 years 
6-10 years 
Over 10 years 
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
orted 
-orted 
orted 
-orted 
orted 
-orted 
orted 
-orted 
Base 
142 
460 
39 
156 
39 
161 
64 
143 
Less than 2 years 
5% 
6% 
40% 
33% 
- 
- 
- 
- 
2-5 years 
8% 
12% 
65% 
67% 
- 
- 
- 
- 
6-10 years 
17% 
26% 
- 
- 
100% 
100% 
- 
- 
11-20 years 
33% 
28% 
- 
- 
- 
- 
47% 
50% 
Over 20 years 
37% 
28% 
- 
- 
- 
- 
53% 
50% 

 As seen above, supported non-users tend to be slightly older than their unsupported counterparts, and as such are closer to the profile of UKTI users. 

## 4.2 Size Of Business

The chart below shows the profile of the non-user businesses interviewed in terms of the number of employees they have within the UK.  Comparative data has also been provided for users of UKTI support (from PIMS). Base: All respondents (Base, Don't know/Refused, Not yet trading)  
Non-Users - Total (300, 2%, 0%), Up to 5 years old (99, 3%, 0%), 6-10 years old (100, 0%, 0%), Over 10 years old (101, 2%, 0%)  
Users - Total (3945, 1%, 2%), Up to 5 years old (952, 1%, 8%), 6-10 years old (664, 0%, 0%), Over 10 years old (2313, 2%,0%) A high proportion of the non-user f irms interviewed are r elatively small in terms of number o f e mployees, with two-thirds employing less t han 10  members of  staff.  
Even amongst firms that have been trading for over 10 years, the majority still have less than 10 employees. Whilst they are still primarily SMEs, UKTI clients tend to be significantly larger than non-user firms, with the majority having 10 or more employees.  Around a fifth (21%) 
of UKTI users have 100 or more employees, compared to just 6% of non-user firms.  
This difference in the size profile of users and no n-users is evident in each of the three age bands. Generally, supported non -users t end t o be  larger t han u nsupported o nes, and ar e therefore closer in profile to users of UKTI.   

 
Total 
Up to 5 years 
6-10 years 
Over 10 years 
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
orted 
-orted 
orted 
-orted 
orted 
-orted 
orted 
-orted 
Base 
142 
460 
39 
156 
39 
161 
64 
143 
0 
1%  
2%  
0%  
2%  
0%  
2%  
2%  
2%  
1-9 
43%  
63%  
74% 
77%  
56% 
73%  
33%  
55%  
10-19 
19% 
16% 
13% 
11% 
18% 
8% 
20% 
22% 
20-49 
15% 
10% 
3% 
5% 
10% 
11% 
19% 
10% 
50-99 
10% 
3% 
3% 
1% 
13% 
4% 
11% 
3% 
100-249 
7% 
2% 
3% 
1% 
3% 
1% 
9% 
3% 
250+ 
5% 
2% 
5% 
1% 
0% 
1% 
6% 
4% 
Don't know 
0% 
2% 
0% 
4% 
0% 
1% 
0% 
1% 

## 4.3 Turnover

The chart below shows the profile of non-user businesses in terms of their current annual turnover.  Comparative data has also been provided for users of UKTI support (from PIMS). Base: All respondents (Base, Don't know/Refused, Not yet trading)  
Non-Users - Total (300, 14%, 0%), Up to 5 years old (99, 14%, 0%), 6-10 years old (100, 11%, 0%), Over 10 years old (101, 15%, 0%) Users - Total (3945, 12%, 2%), Up to 5 years old (952, 9%, 8%), 6-10 years old (664, 10%, 0%), Over 10 years old (2313, 14%, 0%) Reflecting t heir s maller s ize i n terms o f employee nu mbers, non-user bus inesses also tend to have lower annual turnovers, with around half reporting sales of no more than £500,000 per year (compared to 29% of users). Amongst UKTI users there is a clear correlation between age of firms and annual turnover, an d t he pr oportion o f firms r eporting s ales o f £500,000 or l ess falls significantly as  firms become m ore w ell es tablished.  H owever, t his r elationship i s less evident amongst non-users, with similar proportions of firms aged 0-5 years and 
6-10 years reporting turnover of no more than £500,000 (66% and 63% respectively). 

 

As s een bel ow, t hose no n-users that hav e accessed non -UKTI s upport report significantly higher s ales t han t hose t hat have not  used ex ternal export-related support, and are much closer in profile to UKTI users in this respect.  There is also a clearer relationship between age and annual turnover amongst supported non-users, whereas amongst unsupported firms the proportion reporting sales of no more than £500,000 is broadly similar irrespective of age. 

| Total              | Up to 5 years    | 6-10 years    | Over 10 years    |
|--------------------|------------------|---------------|------------------|
|                    |                  |               |                  |
| Supp-              | Unsupp           | Supp-         | Unsupp           |
| orted              | -orted           | orted         | -orted           |
| Base               |                  |               |                  |
|                    |                  |               |                  |
| 142                |                  |               |                  |
|                    |                  |               |                  |
| 460                |                  |               |                  |
|                    |                  |               |                  |
| 39                 |                  |               |                  |
|                    |                  |               |                  |
| 156                |                  |               |                  |
|                    |                  |               |                  |
| 39                 |                  |               |                  |
|                    |                  |               |                  |
| 161                |                  |               |                  |
|                    |                  |               |                  |
| 64                 |                  |               |                  |
|                    |                  |               |                  |
| 143                |                  |               |                  |
|                    |                  |               |                  |
| Up to £500k        |                  |               |                  |
| 32%                |                  |               |                  |
| 49%                | 54%              | 54%           | 41%              |
| £500k-£2m          |                  |               |                  |
| 22%                |                  |               |                  |
| 21%                | 26%              | 21%           | 21%              |
| £2m-£10m           |                  |               |                  |
| 20%                |                  |               |                  |
| 9%                 | 8%               | 5%            | 18%              |
| £10m-£50m          |                  |               |                  |
| 12%                |                  |               |                  |
| 3%                 | 5%               | 1%            | 10%              |
| Over £50m          |                  |               |                  |
| 0%                 |                  |               |                  |
| 2%                 | 0%               | 1%            | 0%               |
| Don't know/refused |                  |               |                  |
| 14%                |                  |               |                  |
| 16%                | 8%               | 19%           | 10%              |

## 4.4 Industry Sector

The chart below shows the profile of the non-user businesses interviewed in terms of their broad industry sector.  Comparative data has also been provided for users of UKTI support (from PIMS). 

Base: All respondents (Base)  
Non-Users - Total (300), Up to 5 years old (99) 6-10 years old (100), Over 10 years old (101) Users - Total (3945), Up to 5 years old (952), 6-10 years old (664), Over 10 years old (2313) For both users and non-users of UKTI, the majority of firms operate in the services sector.  However, UKTI users are comparatively more likely to be i n the production sector, with this particularly true of older firms that have been established for more than 10 years. It i s w orth n oting t hat t he pr oportion o f non-user firms i n t he se rvices se ctor has  
increased over t ime, from 6 3% i n 20 10 t o 73% c urrently.  Whilst t his c ould be a function of the sampling approach, the same methodology was employed in both of these surveys whereby a random sample of UK firms was sourced (excluding a small number o f s ectors w here ex port pr opensity i s v ery l ow) and ' screening' q uestions were asked to identify exporters.  T he increase may therefore indicate that the UK service sector has been expanding or that service sector firms are increasingly likely to export. The table below again suggests that non-user firms that access external (non-UKTI) 
support are similar in profile to UKTI users, with this group more likely to be i n the production sector (although it should be noted that this difference between supported and unsupported non-users is not statistically significant).   
 

 
 
Total 
Up to 5 years 
6-10 years 
Over 10 years 
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
orted 
-orted 
orted 
-orted 
orted 
-orted 
orted 
-orted 
Base 
142 
460 
39 
156 
39 
161 
64 
143 
Primary 
1% 
1% 
5% 
0% 
0% 
1% 
0% 
1% 
Production 
35% 
28% 
13% 
25% 
23% 
25% 
42% 
29% 
Construction 
2% 
2% 
8% 
5% 
5% 
2% 
0% 
1% 
Services 
63% 
70% 
74% 
70% 
72% 
72% 
58% 
69% 

 

## 4.5 Company Status & Ownership 4.5.1 Company Status

The company status of the non-user businesses interviewed is shown below, along with comparative data for users of UKTI support. Base: All respondents (Base, Don't know/Refused, Not yet trading)  
Non-Users  - Total (300, 2%, 0%) Up to 5 years old (99, 1%, 0%), 6-10 years old (100,2%, 0%), Over 10 years old (101, 3%, 0%)  
Users - Total (3945, 1%, 2%), Up to 5 years old (952, 0%, 8%), 6-10 years old (664, 1%, 0%), Over 10 years old (2313, 1%,0%) Users o f U KTI's s ervices a re si gnificantly more l ikely t o either hav e t heir ow n subsidiaries or be the subsidiary of a larger firm.  However, for both users and nonusers the majority are still independent firms with no subsidiaries. Overall, supported non-users are more likely to be subsidiaries of larger firms than is the case f or uns upported non-users, w ith t his di fference par ticularly appar ent for older firms that have been established for 10 years or more. 

 
 
Total 
Up to 5 years 
6-10 years 
Over 10 years 
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
orted 
-orted 
orted 
-orted 
orted 
-orted 
orted 
-orted 
Base 
142 
460 
39 
156 
39 
161 
64 
143 
Independent, no subsidiaries 
70% 
88% 
85% 
90% 
74% 
85% 
66% 
88% 
Business with subsidiaries 
5% 
4% 
3% 
3% 
10% 
6% 
5% 
3% 
Subsidiary of another firm 
22% 
6% 
10% 
6% 
13% 
6% 
26% 
6% 
Not for profit 
0% 
1% 
0% 
1% 
0% 
1% 
0% 
1% 
Don't know 
3%  
1%  
3%  
0% 
3%  
2%  
3%  
1%  

## 4.5.2 Company Ownership

The chart below shows data on the ownership of non-user businesses, along with comparative data for users of UKTI support. Base: All respondents (Base, Don't know/Refused, Not for profit/other business type, Not yet trading)  
Non-Users - Total (300,4%,1%,0%), Up to 5 years old (99,1%,4%,0%) 6-10 years old (100,3%,1%,0%), Over 10 years old (101,5%,0%,0%) Users - Total (3945,0%,2%,2%), Up to 5 years old (952,1%,0%,8%), 6-10 years old (664,0%,2%,0%), Over 10 years old (2313,0%,2%,0%) Reflecting the fact that they tend to be independent firms rather than subsidiaries, the vast majority of non-user businesses are UK-owned.  This is also true of UKTI users, although this latter group are comparatively more likely to be foreign owned (13% vs. 3% of non-users). As seen below, supported non-users are significantly more likely to be foreign owned than unsupported non-users, and this is the case across all age bands. 

 
Total 
Up to 5 years 
6-10 years 
Over 10 years 
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
orted 
-orted 
orted 
-orted 
orted 
-orted 
orted 
-orted 
Base 
142 
460 
39 
156 
39 
161 
64 
143 
UK-owned 
81% 
93% 
87% 
95% 
80% 
93% 
80% 
93% 
Foreign-owned 
14% 
4% 
8% 
3% 
10% 
4% 
15% 
3% 
Joint UK & foreign-owned 
1% 
1% 
3% 
0% 
3% 
1% 
0% 
1% 
Not for profit/ other business type 
1% 
1% 
0% 
2% 
3% 
2% 
0% 
1% 
Don't know 
4% 
1% 
3% 
0% 
7% 
1% 
5% 
2% 
 

## 4.6 Management Profile

The chart below shows the proportions of non-user businesses interviewed that have at least one owner, partner or director with degree level (or equivalent) qualifications.  
Comparative data has also been provided for users of UKTI support. Base: All respondents (Base, Don't know/Refused, Not yet trading)  
Non-Users - Total (300, 4%, 0%), Up to 5 years old (99, 4%, 0%) , 6-10 years ago (100, 2%, 0%), Over 10 years old (101, 5%, 0%)  
Users - Total (3945, 11%, 2%), Up to 5 years old (952, 3%, 8%), 6-10 years old (664, 5%, 0%), Over 10 years old (2313, 15%,0%) The m ajority of non-user f irms h ave at  l east one ow ner, par tner or  di rector w ith degree level qualifications, although the proportion decreases slightly amongst older firms.   
 
Users of UKTI trade development services are considerably more likely to have at least o ne hi ghly-qualified member o f t he s enior m anagement t eam and, as  s een below, t he s ame i s true o f s upported non-users.  T his suggests that f irms with degree-level management are more inclined to seek out export assistance. 

 

|            |        |       |        | Total    | Up to 5 years    | 6-10 years    | Over 10 years    |
|------------|--------|-------|--------|----------|------------------|---------------|------------------|
| Supp-      | Unsupp | Supp- | Unsupp | Supp-    | Unsupp           | Supp-         | Unsupp           |
| orted      | -orted | orted | -orted | orted    | -orted           | orted         | -orted           |
| Base       |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 142        |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 460        |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 39         |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 156        |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 39         |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 161        |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 64         |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 143        |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| Yes        |        |       |        |          |                  |               |                  |
| 63%        |        |       |        |          |                  |               |                  |
| 56%        | 59%    | 56%   | 69%    | 61%      | 63%              | 54%           |                  |
| No         |        |       |        |          |                  |               |                  |
| 29%        |        |       |        |          |                  |               |                  |
| 40%        | 33%    | 41%   | 23%    | 36%      | 30%              | 42%           |                  |
| Don't know |        |       |        |          |                  |               |                  |
| 8%         |        |       |        |          |                  |               |                  |
| 3%         | 8%     | 3%    | 8%     | 2%       | 8%               | 4%            |                  |
|            |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |

## Business Strategy 4.7.1 Business Planning

Non-user businesses were asked whether they had a current, written business plan and, i f s o, w hether t his pl an c ontained any t argets that s pecifically related to overseas sales.  
These r esults are s hown i n t he following table, al ong w ith comparable results for users of UKTI support (only available from PIMS 22-23). 

 

|                          |       | Non-Users (PIMS 2011)    | Users (PIMS 22-23)    |
|--------------------------|-------|--------------------------|-----------------------|
| 6-10                     | >10   | 6-10                     | >10                   |
| Total                    |       |                          |                       |
| Up to 5                  |       |                          |                       |
| years                    | years | years                    |                       |
| Total                    |       |                          |                       |
| Up to 5                  |       |                          |                       |
| years                    | years | years                    |                       |
| Base                     |       |                          |                       |
|                          |       |                          |                       |
| 300                      |       |                          |                       |
|                          |       |                          |                       |
| 99                       |       |                          |                       |
|                          |       |                          |                       |
| 100                      |       |                          |                       |
|                          |       |                          |                       |
| 101                      |       |                          |                       |
|                          |       |                          |                       |
| 1922                     |       |                          |                       |
|                          |       |                          |                       |
| 448                      |       |                          |                       |
|                          |       |                          |                       |
| 318                      |       |                          |                       |
|                          |       |                          |                       |
| 1147                     |       |                          |                       |
|                          |       |                          |                       |
| Current business plan    | 42%   | 47%                      | 37%                   |
| - With overseas targets  |       |                          |                       |
|                          |       |                          |                       |
| 21%                      |       |                          |                       |
|                          |       |                          |                       |
| 22%                      |       |                          |                       |
|                          |       |                          |                       |
| 19%                      |       |                          |                       |
|                          |       |                          |                       |
| 21%                      |       |                          |                       |
|                          |       |                          |                       |
| 56%                      |       |                          |                       |
|                          |       |                          |                       |
| 58%                      |       |                          |                       |
|                          |       |                          |                       |
| 45%                      |       |                          |                       |
|                          |       |                          |                       |
| 58%                      |       |                          |                       |
|                          |       |                          |                       |
| - No overseas targets    |       |                          |                       |
|                          |       |                          |                       |
| 18%                      |       |                          |                       |
|                          |       |                          |                       |
| 24%                      |       |                          |                       |
|                          |       |                          |                       |
| 16%                      |       |                          |                       |
|                          |       |                          |                       |
| 18%                      |       |                          |                       |
|                          |       |                          |                       |
| 13%                      |       |                          |                       |
|                          |       |                          |                       |
| 17%                      |       |                          |                       |
|                          |       |                          |                       |
| 16%                      |       |                          |                       |
|                          |       |                          |                       |
| 11%                      |       |                          |                       |
|                          |       |                          |                       |
| - Don't know             |       |                          |                       |
|                          |       |                          |                       |
| 3%                       |       |                          |                       |
|                          |       |                          |                       |
| 1%                       |       |                          |                       |
|                          |       |                          |                       |
| 2%                       |       |                          |                       |
|                          |       |                          |                       |
| 4%                       |       |                          |                       |
|                          |       |                          |                       |
| 3%                       |       |                          |                       |
|                          |       |                          |                       |
| 0%                       |       |                          |                       |
|                          |       |                          |                       |
| 3%                       |       |                          |                       |
|                          |       |                          |                       |
| 3%                       |       |                          |                       |
|                          |       |                          |                       |
| No current business plan | 54%   | 49%                      | 61%                   |
| Don't know if have plan  | 4%    | 3%                       | 2%                    |

 Business planning appears to be much more prevalent amongst users of UKTI trade development services than non-users, w ith almost t hree-quarter o f us ers having a business plan compared to just two-fifths of non-users.  Furthermore, only a fifth of non-users have a plan that contains targets relating to overseas sales, whereas over half of UKTI clients indicated that this was the case. With respect to differences between supported and unsupported non-user firms, the former are more likely to have a current written business plan and for it to contain overseas targets (although still significantly less likely than UKTI users).  
 

|                         |        |       |        | Total    | Up to 5 years    | 6-10 years    | Over 10 years    |
|-------------------------|--------|-------|--------|----------|------------------|---------------|------------------|
| Supp-                   | Unsupp | Supp- | Unsupp | Supp-    | Unsupp           | Supp-         | Unsupp           |
| orted                   | -orted | orted | -orted | orted    | -orted           | orted         | -orted           |
| Base                    |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 142                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 460                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 39                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 156                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 39                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 161                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 64                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 143                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| Current business plan   | 56%    | 40%   | 51%    | 49%      | 56%              | 39%           | 56%              |
| - With overseas targets |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 32%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 18%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 38%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 19%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 21%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 16%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 34%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 18%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| - No overseas targets   |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 18%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 21%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 13%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 30%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 33%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 22%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 16%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 17%                     |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| - Don't know            |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 5%                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 1%                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 0%                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 1%                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 3%                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 1%                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 6%                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| 2%                      |        |       |        |          |                  |               |                  |
|                         |        |       |        |          |                  |               |                  |
| No current plan         | 40%    | 57%   | 46%    | 49%      | 41%              | 58%           | 39%              |
| Don't know if have plan | 4%     | 3%    | 3%     | 2%       | 3%               | 4%            | 5%               |


## 4.7.2 Business Focus

Firms were asked whether t he key focus of t heir business at t he t ime of interview was t o m aintain s ales o f their c urrent pr oducts/services, i ncrease s ales o f t heir current products/services or develop new products/services.  Further clarification was then s ought t o es tablish w hether t his r elated t o t heir ex isting markets or new markets.  

Non-Users (PIMS 2011) 
Users (PIMS 16-19 Follow Up) 
6-10 
>10 
6-10 
>10 
Total 
Up to 5 
years  
years  
years  
Total 
Up to 5 
years  
years  
years  
Base 
300 
99 
100 
101 
391 
99 
73 
219 
Maintaining sales of 
current products/services 
28% 
15% 
22% 
35% 
14% 
5% 
21% 
17% 
Increasing sales of current products/services 
57% 
67% 
61% 
53% 
66% 
68% 
61% 
66% 
 - In current markets 
22% 
19% 
22% 
23% 
21% 
30% 
13% 
18% 
 - In new markets 
7% 
14% 
10% 
4% 
23% 
21% 
20% 
24% 
 - In both 
28% 
33% 
29% 
26% 
22% 
17% 
27% 
24% 
Developing new products/services 
26% 
19% 
24% 
29% 
37% 
41% 
40% 
35% 
 - For current markets 
6% 
6% 
7% 
5% 
12% 
11% 
4% 
15% 
 - For new markets 
3% 
4% 
3% 
3% 
9% 
9% 
18% 
6% 
- For both 
17% 
9% 
14% 
20% 
17% 
21% 
17% 
15% 
None of these 
2% 
3% 
3% 
1% 
2% 
4% 
0% 
2% 
Don't know 
0% 
1% 
0% 
0% 
0% 
0% 
0% 
0% 

 Non-user businesses are generally fairly positive in their outlook, with over half (57%) 
focussing on increasing sales of t heir current products and services and a quarter (26%) concentrating o n dev eloping new  pr oducts a nd s ervices.  N onetheless, this does leave over a q uarter ( 28%) o f non-users th at are m erely l ooking t o m aintain sales o f t heir c urrent products an d s ervices, w ith t his m ore l ikely t o b e t he c ase amongst older firms. In contrast, UKTI users tend to have more ambitious plans than non-users, with only 14% pr imarily f ocussing on m aintaining s ales r ather t han i ncreasing s ales o r developing n ew pr oducts/services.  
This i mplies t hat ac cessing UKTI support encourages firms to be more dynamic in their growth aspirations, although of course it could also be the case that firms who are looking to expand are more inclined to seek out external support to help do this. The following table provides a m ore detailed analysis of the business objectives of supported and unsupported non-users. 

| Total                 | Up to 5 years    | 6-10 years    | Over 10 years    |
|-----------------------|------------------|---------------|------------------|
|                       |                  |               |                  |
| Supp-                 | Unsupp           | Supp-         | Unsupp           |
| orted                 | -orted           | orted         | -orted           |
| Base                  |                  |               |                  |
|                       |                  |               |                  |
| 142                   |                  |               |                  |
|                       |                  |               |                  |
| 460                   |                  |               |                  |
|                       |                  |               |                  |
| 39                    |                  |               |                  |
|                       |                  |               |                  |
| 156                   |                  |               |                  |
|                       |                  |               |                  |
| 39                    |                  |               |                  |
|                       |                  |               |                  |
| 161                   |                  |               |                  |
|                       |                  |               |                  |
| 64                    |                  |               |                  |
|                       |                  |               |                  |
| 143                   |                  |               |                  |
|                       |                  |               |                  |
| 33%                   |                  |               |                  |
| 30%                   | 16%              | 27%           | 41%              |
| Maintaining sales of  |                  |               |                  |
| current products/     |                  |               |                  |
| services              |                  |               |                  |
| 51%                   |                  |               |                  |
| 56%                   | 59%              | 62%           | 51%              |
| Increasing sales of   |                  |               |                  |
| current products/     |                  |               |                  |
| services              |                  |               |                  |
| - In current markets  |                  |               |                  |
|                       |                  |               |                  |
| 17%                   |                  |               |                  |
|                       |                  |               |                  |
| 23%                   |                  |               |                  |
|                       |                  |               |                  |
| 16%                   |                  |               |                  |
|                       |                  |               |                  |
| 19%                   |                  |               |                  |
|                       |                  |               |                  |
| 13%                   |                  |               |                  |
|                       |                  |               |                  |
| 27%                   |                  |               |                  |
|                       |                  |               |                  |
| 19%                   |                  |               |                  |
|                       |                  |               |                  |
| 22%                   |                  |               |                  |
|                       |                  |               |                  |
| - In new markets      |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| 7%                    |                  |               |                  |
|                       |                  |               |                  |
| 10%                   |                  |               |                  |
|                       |                  |               |                  |
| 13%                   |                  |               |                  |
|                       |                  |               |                  |
| 13%                   |                  |               |                  |
|                       |                  |               |                  |
| 7%                    |                  |               |                  |
|                       |                  |               |                  |
| 6%                    |                  |               |                  |
|                       |                  |               |                  |
| 5%                    |                  |               |                  |
|                       |                  |               |                  |
| - In both             |                  |               |                  |
|                       |                  |               |                  |
| 26%                   |                  |               |                  |
|                       |                  |               |                  |
| 25%                   |                  |               |                  |
|                       |                  |               |                  |
| 33%                   |                  |               |                  |
|                       |                  |               |                  |
| 30%                   |                  |               |                  |
|                       |                  |               |                  |
| 26%                   |                  |               |                  |
|                       |                  |               |                  |
| 25%                   |                  |               |                  |
|                       |                  |               |                  |
| 25%                   |                  |               |                  |
|                       |                  |               |                  |
| 24%                   |                  |               |                  |
|                       |                  |               |                  |
| Developing new        |                  |               |                  |
| products/services     |                  |               |                  |
| 33%                   | 25%              | 36%           | 19%              |
| - For current markets |                  |               |                  |
|                       |                  |               |                  |
| 7%                    |                  |               |                  |
|                       |                  |               |                  |
| 7%                    |                  |               |                  |
|                       |                  |               |                  |
| 18%                   |                  |               |                  |
|                       |                  |               |                  |
| 4%                    |                  |               |                  |
|                       |                  |               |                  |
| 3%                    |                  |               |                  |
|                       |                  |               |                  |
| 7%                    |                  |               |                  |
|                       |                  |               |                  |
| 6%                    |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| - For new markets     |                  |               |                  |
|                       |                  |               |                  |
| 7%                    |                  |               |                  |
|                       |                  |               |                  |
| 3%                    |                  |               |                  |
|                       |                  |               |                  |
| 3%                    |                  |               |                  |
|                       |                  |               |                  |
| 4%                    |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| 4%                    |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| 3%                    |                  |               |                  |
|                       |                  |               |                  |
| - For both            |                  |               |                  |
|                       |                  |               |                  |
| 19%                   |                  |               |                  |
|                       |                  |               |                  |
| 14%                   |                  |               |                  |
|                       |                  |               |                  |
| 15%                   |                  |               |                  |
|                       |                  |               |                  |
| 11%                   |                  |               |                  |
|                       |                  |               |                  |
| 23%                   |                  |               |                  |
|                       |                  |               |                  |
| 9%                    |                  |               |                  |
|                       |                  |               |                  |
| 19%                   |                  |               |                  |
|                       |                  |               |                  |
| 17%                   |                  |               |                  |
|                       |                  |               |                  |
| None of these         | 0%               | 2%            | 3%               |
| Don't know            | 0%               | 0%            | 3%               |

 
Overall, the current business objectives of supported and unsupported non-users are broadly s imilar, wit h just ov er hal f primarily f ocussing on increasing sales of  t heir current products and services. 

## 4.8 Innovation 4.8.1 'Innovative' Firms

The c hart below s hows t he pr oportions o f s upported businesses t hat have b een classified as being 'innovative'.  Comparative data has also been provided for users of UKTI support (from PIMS). 



Base: All respondents (Base) Non-Users - Total (300), Up to 5 years old (99), 6-10 years old (100), Over 10 years old (101)  
Users - Total (3945), Up to 5 years old (952), 6-10 years old (664), Over 10 years old (2313) Innovation l evels differ significantly between non-users a nd us ers, w ith just unde r two-thirds of non-users classified as being innovative, compared with over four-fifths of UKTI users. Once again, supported non-user firms are closer in profile t o UKTI users, and are significantly m ore l ikely t o be i nnovative t han their unsupported counterparts. T his appears to be true across all age bands.  
 

|            |        |       |        | Total    | Up to 5 years    | 6-10 years    | Over 10 years    |
|------------|--------|-------|--------|----------|------------------|---------------|------------------|
| Supp-      | Unsupp | Supp- | Unsupp | Supp-    | Unsupp           | Supp-         | Unsupp           |
| orted      | -orted | orted | -orted | orted    | -orted           | orted         | -orted           |
| Base       |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 142        |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 460        |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 39         |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 156        |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 39         |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 161        |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 64         |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| 143        |        |       |        |          |                  |               |                  |
|            |        |       |        |          |                  |               |                  |
| Innovative |        |       |        |          |                  |               |                  |
| 75%        |        |       |        |          |                  |               |                  |
| 59%        | 69%    | 55%   | 74%    | 59%      | 76%              | 61%           |                  |

 The panel below provides details of how 'innovative' firms have been defined for the purposes of this analysis. 

## 'Innovative' Firms

In the PIMS non-user survey and the PIMS user surveys, firms are classified as being 'innovative' if… 
 

- 
They hav e more than o ne e mployee eng aged either w holly or  pa rtly i n R&D activity and have more than one employee engaged either wholly or 
partly in new product or service development  
- 
Or, they have employed someone external to the business to conduct new 
product or service development in the last year 
- 
Or, have introduced new products or services in the last 3 y ears except 
firms established in the last 2 years 
 As det ailed ab ove, t he ' introduced new  pr oducts or  s ervices i n t he l ast 3 y ears' element is not used as an indicator of innovation for recently established firms (on the basis that all products/services sold by newly established firms could be classed as being 'new'). However, it should be noted that the omission of this element for new firms seems to be pulling down t he innovation results for the 'Established up t o 5 years' group of firms.  The table below compares results for all firms established in the last 5 years with results for firms established 2-5 years (i.e. excluding those not asked the new products/services element of the innovation measure). 

 
Non-Users (PIMS 2011) 
Users (PIMS 20-23) 
0-5 years old 
2-5 years old 
0-5 years old 
2-5 years old 
Base 
99 
64 
952 
593 
Innovative 
59% 
73% 
69% 
88% 

 When the innovation definition is recalculated to exclude firms established in the last 2 y ears, t he r esults for bot h users and n on-users i ncrease s ignificantly ( to a l evel similar to that seen for older firms). 


## 4.8.2 'Innovative' Firms (Alternative, Tighter Definition)

The c hart below s hows t he pr oportions o f s upported businesses t hat have b een classified as being 'innovative' using the alternative, tighter definition.  C omparative data has also been provided for users of UKTI support (from PIMS). 



Base: All respondents (Base) Non-Users - Total (300), Up to 5 years old (99), 6-10 years old (100), Over 10 years old (101)  
Users - Total (3945), Up to 5 years old (952), 6-10 years old (664), Over 10 years old (2313) When t he al ternative de finition o f i nnovation i s e mployed, the difference b etween users and non-users of UKTI is even more apparent, with t wo-thirds of the former group classified as innovative compared to just a third of the latter. Supported non-user firms are more likely than unsupported non-users to be classified as innovative, although they are still significantly less innovative than UKTI users.  
 

|                          |        |       |        | Total    | Up to 5 years    | 6-10 years    | Over 10 years    |
|--------------------------|--------|-------|--------|----------|------------------|---------------|------------------|
| Supp-                    | Unsupp | Supp- | Unsupp | Supp-    | Unsupp           | Supp-         | Unsupp           |
| orted                    | -orted | orted | -orted | orted    | -orted           | orted         | -orted           |
| Base                     |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 142                      |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 460                      |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 39                       |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 156                      |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 39                       |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 161                      |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 64                       |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 143                      |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| Innovative (alternative) |        |       |        |          |                  |               |                  |
| 43%                      |        |       |        |          |                  |               |                  |
| 30%                      | 41%    | 24%   | 28%    | 29%      | 47%              | 31%           |                  |

The panel below provides details of how 'innovative' firms have been defined for the purposes of this analysis. 

## 'Innovative' Firms (Alternative)

In the PIMS non-user survey and the PIMS user surveys, firms are classified as being 'innovative' under this alternative definition if… 
 
- 
They hav e more than o ne e mployee eng aged either w holly or  pa rtly i n R&D activity and have more than one employee engaged either wholly or 
partly i n ne w pr oduct or  s ervice dev elopment and at l east s ome 
employees ar e engaged i n the dev elopment of scientific or t echnical knowledge not commonly available 
- 
Or, they have employed someone external to the business to conduct new 
product or service development in the last year 
- 
Or, have introduced new products or services in the last 3 y ears except 
firms established in the last 2 years and these are 'new to the world' or 'new to the sector' 

## 4.8.3 Employees Engaged In R&D Activity

Non-user businesses were asked to indicate the number of their employees involved either wholly or partly in Research and Development activity.  Comparative data has also been provided for users of UKTI support (from PIMS). 

 
Base: All respondents (Base, Don't know/Refused, Not yet trading)  
Non-Users - Total (300, 3%, 0%), Up to 5 years old (99, 6%, 0%), 6-10 years old (100, 1%, 0%), Over 10 years old (101, 4%, 0%) 
Users - Total (3945, 4%, 2%), Up to 5 years old (952, 1%, 8%), 6-10 years old (664, 3%, 0%), Over 10 years old (2313, 6%, 0%) UKTI u sers are s ignificantly m ore l ikely t o have s taff engaged i n R &D than n onusers, with 68% having at least one employee involved in these activities compared to only 51% of non-users. The table below demonstrates that supported non-users are considerably more likely to have employees involved in R&D than unsupported ones. 

| Total      | Up to 5 years    | 6-10 years    | Over 10 years    |
|------------|------------------|---------------|------------------|
|            |                  |               |                  |
| Supp-      | Unsupp           | Supp-         |                  |
| orted      | -orted           | orted         |                  |
| Base       |                  |               |                  |
|            |                  |               |                  |
| 142        |                  |               |                  |
|            |                  |               |                  |
| 460        |                  |               |                  |
|            |                  |               |                  |
| 39         |                  |               |                  |
|            |                  |               |                  |
| 156        |                  |               |                  |
|            |                  |               |                  |
| 39         |                  |               |                  |
|            |                  |               |                  |
| 161        |                  |               |                  |
|            |                  |               |                  |
| 64         |                  |               |                  |
|            |                  |               |                  |
| 143        |                  |               |                  |
|            |                  |               |                  |
| Zero       | 34%              | 55%           | 28%              |
| 1          | 18%              | 19%           | 36%              |
| 2-9        | 40%              | 20%           | 30%              |
| 10-49      | 6%               | 3%            | 3%               |
| 50+        | 0%               | 1%            | 3%               |
| Don't know | 1%               | 3%            | 3%               |
|            |                  |               |                  |
|            |                  |               |                  |


| Unsupp   | Supp-   | Unsupp   | Supp-   | Unsupp   |
|----------|---------|----------|---------|----------|
| -orted   | orted   | -orted   | orted   | -orted   |

The c hart below g ives t he s ame results, but  di splaying t he num ber o f R &D 
employees as a *proportion* of the firm's total employees. Base: All respondents (Base, Don't know/Refused, Not Yet Trading) Non-Users - Total (300, 3%, 0%), Up to 5 years old (99, 5%, 0%), 6-10 years old (100, 1%, 0%), Over 10 years old (101, 4%, 0%)  
Users - Total (3945, 4%, 2%), Up to 5 years old (952, 1%, 8%), 6-10 years old (664, 3%, 0%), Over 10 years old (2313, 6%,0%)  
 
Although U KTI us ers ar e m ore l ikely t o ha ve any staff eng aged i n R &D, t here i s actually little difference between us ers and non -users w hen i t c omes t o the m ean proportion o f employees i nvolved i n t hese activities ( 27% and 24% respectively).  
Generally, the younger the firm the greater the proportion of their staff engaged in R&D, and this is true for both users and non-users of UKTI. 

 
As seen below, supported non-users are more likely to have any employees involved in R&D, but similar proportions of supported and unsupported firms indicate that over 50% of their workforce is engaged in this type of activity.   
 

| Total         | Up to 5 years    | 6-10 years    | Over 10 years    |
|---------------|------------------|---------------|------------------|
|               |                  |               |                  |
| Supp-         | Unsupp           | Supp-         | Unsupp           |
| orted         | -orted           | orted         | -orted           |
| Base          |                  |               |                  |
|               |                  |               |                  |
| 142           |                  |               |                  |
|               |                  |               |                  |
| 460           |                  |               |                  |
|               |                  |               |                  |
| 39            |                  |               |                  |
|               |                  |               |                  |
| 156           |                  |               |                  |
|               |                  |               |                  |
| 39            |                  |               |                  |
|               |                  |               |                  |
| 161           |                  |               |                  |
|               |                  |               |                  |
| 64            |                  |               |                  |
|               |                  |               |                  |
| 143           |                  |               |                  |
|               |                  |               |                  |
| Zero          | 34%              | 55%           | 28%              |
| Up to 10%     | 20%              | 7%            | 8%               |
| 11-20%        | 12%              | 9%            | 8%               |
| 21-50%        | 19%              | 15%           | 23%              |
| More than 50% | 14%              | 12%           | 31%              |
| Don't know    | 1%               | 3%            | 3%               |
|               |                  |               |                  |
|               |                  |               |                  |

## 4.8.4 Employees Involved In Development Of Scientific/Technical Knowledge

Non-user businesses were asked to indicate whether any of their R&D employees are involved in activities that could be described as 'the development of scientific or technical knowledge that isn't commonly available'.  Comparative data has also been provided for users of UKTI support. 

 
Base: All respondents (Base, Don't know/Refused, Not yet trading)  
Non-Users - Total (300, 5%, 0%), Up to 5 years old (99, 8%, 0%), 6-10 years old (100, 3%, 0%), Over 10 years old (101, 6%, 0%) 
Users - Total (3945, 5%, 2%), Up to 5 years old (952, 2%, 8%), 6-10 years old (664, 4%, 0%), Over 10 years old (2313, 6%, 0%) Only a quarter of non-user businesses indicated that they have staff involved in 'the development of s cientific or  t echnical k nowledge t hat i sn't c ommonly av ailable', compared to two-fifths of UKTI users. Once again, those non-user firms that have accessed export related support (from a non-UKTI s ource) are more likely t o b e engaged i n i nnovation ac tivities t han unsupported non-users and are similar to UKTI users in this regard. 

| Total            | Up to 5 years    | 6-10 years    | Over 10 years    |
|------------------|------------------|---------------|------------------|
|                  |                  |               |                  |
| Supp-            | Unsupp           | Supp-         | Unsupp           |
| orted            | -orted           | orted         | -orted           |
| Base             |                  |               |                  |
|                  |                  |               |                  |
| 142              |                  |               |                  |
|                  |                  |               |                  |
| 460              |                  |               |                  |
|                  |                  |               |                  |
| 39               |                  |               |                  |
|                  |                  |               |                  |
| 156              |                  |               |                  |
|                  |                  |               |                  |
| 39               |                  |               |                  |
|                  |                  |               |                  |
| 161              |                  |               |                  |
|                  |                  |               |                  |
| 64               |                  |               |                  |
|                  |                  |               |                  |
| 143              |                  |               |                  |
|                  |                  |               |                  |
| Yes              |                  |               |                  |
| 35%              |                  |               |                  |
| 17%              | 33%              | 12%           | 33%              |
| No               |                  |               |                  |
| 28%              |                  |               |                  |
| 24%              | 33%              | 37%           | 26%              |
| No R&D employees |                  |               |                  |
| 34%              |                  |               |                  |
| 55%              | 28%              | 45%           | 41%              |
| Don't know       |                  |               |                  |
| 3%               |                  |               |                  |
| 4%               | 10%              | 6%            | 0%               |

## 4.8.5 Employees Engaged In New Product Or Service Development

Non-user businesses were asked to indicate the number of their employees involved either wholly or partly in new product or service development.  Comparative data has also been provided for users of UKTI support. 



Base: All respondents (Base, Don't know/Refused, Not yet trading)  
Non-Users - Total (300, 4%, 0%), Up to 5 years old (99, 6%, 0%), 6-10 years old (100, 0%, 0%), Over 10 years old (101, 5%, 0%)  
Users - Total (3945, 4%, 2%), Up to 5 years old (952, 1%, 8%), 6-10 years old (664, 3%, 0%), Over 10 years old (2313, 6%, 0%) A lit tle over hal f of  no n-user firms have at  l east on e employee engaged i n new  
product or service development, compared to three quarters of UKTI users. The table below indicates that supported non-user firms are significantly more likely to have employees engaged in new product or service development, although levels are still below those seen for UKTI clients. 

| Total      | Up to 5 years    | 6-10 years    | Over 10 years    |
|------------|------------------|---------------|------------------|
|            |                  |               |                  |
| Supp-      | Unsupp           | Supp-         | Unsupp           |
| orted      | -orted           | orted         | -orted           |
| Base       |                  |               |                  |
|            |                  |               |                  |
| 142        |                  |               |                  |
|            |                  |               |                  |
| 460        |                  |               |                  |
|            |                  |               |                  |
| 39         |                  |               |                  |
|            |                  |               |                  |
| 156        |                  |               |                  |
|            |                  |               |                  |
| 39         |                  |               |                  |
|            |                  |               |                  |
| 161        |                  |               |                  |
|            |                  |               |                  |
| 64         |                  |               |                  |
|            |                  |               |                  |
| 143        |                  |               |                  |
|            |                  |               |                  |
| Zero       | 31%              | 46%           | 26%              |
| 1          | 21%              | 20%           | 28%              |
| 2-9        | 37%              | 27%           | 40%              |
| 10-49      | 6%               | 4%            | 3%               |
| 50+        | 1%               | 1%            | 3%               |
| Don't know | 3%               | 3%            | 3%               |
|            |                  |               |                  |
|            |                  |               |                  |

The c hart b elow gi ves t he s ame r esults, b ut di splaying t he num ber o f e mployees engaged in product/service development as a *proportion* of all employees at the firm. 

 

 
Base: All respondents (Base, Don't know/Refused, Not Yet Trading) Non-Users - Total (300, 4%, 0%), Up to 5 years old (99, 5%, 0%), 6-10 years old (100, 0%, 0%), Over 10 years old (101, 5%, 0%)  
Users - Total (3945, 5%, 2%), Up to 5 years old (952, 1%, 8%), 6-10 years old (664, 3%, 0%), Over 10 years old (2313, 7%, 0%)  
 
As was seen for R&D employees, although UKTI users are more likely to have any staff engaged in new product or service development, when expressed as a mean proportion of all employees there is actually relatively little difference in this respect. On average, 31% of the workforce of UKTI users are engaged at least partly in NPD, compared to 27% for non-users. Whilst s upported no n-users ar e more l ikely t o hav e at l east s ome employees engaged in product or service development, when unsupported non-users are doing this it tends to involve a fairly high proportion of their staff. 

| Total         | Up to 5 years    | 6-10 years    | Over 10 years    |
|---------------|------------------|---------------|------------------|
|               |                  |               |                  |
| Supp-         | Unsupp           | Supp-         | Unsupp           |
| orted         | -orted           | orted         | -orted           |
| Base          |                  |               |                  |
|               |                  |               |                  |
| 142           |                  |               |                  |
|               |                  |               |                  |
| 460           |                  |               |                  |
|               |                  |               |                  |
| 39            |                  |               |                  |
|               |                  |               |                  |
| 156           |                  |               |                  |
|               |                  |               |                  |
| 39            |                  |               |                  |
|               |                  |               |                  |
| 161           |                  |               |                  |
|               |                  |               |                  |
| 64            |                  |               |                  |
|               |                  |               |                  |
| 143           |                  |               |                  |
|               |                  |               |                  |
| Zero          | 31%              | 46%           | 26%              |
| Up to 10%     | 19%              | 6%            | 5%               |
| 11-20%        | 12%              | 9%            | 13%              |
| 21-50%        | 20%              | 18%           | 21%              |
| More than 50% | 14%              | 17%           | 33%              |
| Don't know    | 4%               | 3%            | 3%               |
|               |                  |               |                  |
|               |                  |               |                  |
|               |                  |               |                  |

## 4.8.6 External R&D Or New Product/Service Development

Non-user bus inesses w ere al so as ked w hether they ha d c ommissioned anyone external to their business to conduct any R&D or new product/service development activity for them in the last year.  Comparative data has also been provided for users of UKTI support. Base: All respondents (Base, Don't know/Refused, Not Yet Trading) Non-Users - Total (300, 1%, 0%), Up to 5 years old (99, 0%, 0%), 6-10 years old (100, 2%, 0%), Over 10 years old (101, 1%, 0%)  
Users - Total (3945, 3%, 2%), Up to 5 years old (952, 0%, 8%), 6-10 years old (664, 2%, 0%), Over 10 years old (2313, 4%, 0%) UKTI clients ar e twice as  likely t o hav e outsourced R&D o r new pr oduct/service development than non-user firms. There is also some indication that a greater proportion of supported non-users have commissioned ex ternal R&D or  N PD t han i s t he c ase for t heir unsupported counterparts, al though this is not  s tatistically s ignificant.  This di fference i s m ost apparent amongst young firms established in the last 5 years, and for this group the difference between supported and unsupported firms is statistically significant.  
 

| Total      | Up to 5 years    | 6-10 years    | Over 10 years    |
|------------|------------------|---------------|------------------|
|            |                  |               |                  |
| Supp-      | Unsupp           | Supp-         | Unsupp           |
| orted      | -orted           | orted         | -orted           |
| Base       |                  |               |                  |
|            |                  |               |                  |
| 142        |                  |               |                  |
|            |                  |               |                  |
| 460        |                  |               |                  |
|            |                  |               |                  |
| 39         |                  |               |                  |
|            |                  |               |                  |
| 156        |                  |               |                  |
|            |                  |               |                  |
| 39         |                  |               |                  |
|            |                  |               |                  |
| 161        |                  |               |                  |
|            |                  |               |                  |
| 64         |                  |               |                  |
|            |                  |               |                  |
| 143        |                  |               |                  |
|            |                  |               |                  |
| Yes        |                  |               |                  |
| 20%        |                  |               |                  |
| 14%        | 31%              | 13%           | 10%              |
| No         |                  |               |                  |
| 80%        |                  |               |                  |
| 85%        | 69%              | 87%           | 90%              |
| Don't know | 0%               | 1%            | 0%               |
|            |                  |               |                  |
|            |                  |               |                  |

## 4.8.7 New Products & Services

Non-user firms w ere as ked w hether t hey had i ntroduced a ny new  pr oducts or services ov er t he l ast 3 y ears and,  i f s o, whether t hese were j ust new  t o t heir business, n ew t o their i ndustry/sector or c ompletely new  to t he w orld.  The table summarises these results, along with comparative data for users of UKTI support. 

|                       |       | Non-Users (PIMS 2011)    | Users (PIMS 20-23)    |
|-----------------------|-------|--------------------------|-----------------------|
| 6-10                  | >10   | 6-10                     | >10                   |
| Total                 |       |                          |                       |
| Up to 5               |       |                          |                       |
| years                 | years | years                    |                       |
| Total                 |       |                          |                       |
| Up to 5               |       |                          |                       |
| years                 | years | years                    |                       |
| Base                  |       |                          |                       |
|                       |       |                          |                       |
| 300                   |       |                          |                       |
|                       |       |                          |                       |
| 99                    |       |                          |                       |
|                       |       |                          |                       |
| 100                   |       |                          |                       |
|                       |       |                          |                       |
| 101                   |       |                          |                       |
|                       |       |                          |                       |
| 3945                  |       |                          |                       |
|                       |       |                          |                       |
| 952                   |       |                          |                       |
|                       |       |                          |                       |
| 664                   |       |                          |                       |
|                       |       |                          |                       |
| 2313                  |       |                          |                       |
|                       |       |                          |                       |
| Yes                   |       |                          |                       |
| 53%                   |       |                          |                       |
| 44%                   | 60%   | 53%                      |                       |
| 71%                   | 47%   | 79%                      | 79%                   |
| - New to the business |       |                          |                       |
|                       |       |                          |                       |
| 30%                   |       |                          |                       |
|                       |       |                          |                       |
| 26%                   |       |                          |                       |
|                       |       |                          |                       |
| 35%                   |       |                          |                       |
|                       |       |                          |                       |
| 29%                   |       |                          |                       |
|                       |       |                          |                       |
| 31%                   |       |                          |                       |
|                       |       |                          |                       |
| 17%                   |       |                          |                       |
|                       |       |                          |                       |
| 36%                   |       |                          |                       |
|                       |       |                          |                       |
| 35%                   |       |                          |                       |
|                       |       |                          |                       |
| - New to the sector   |       |                          |                       |
|                       |       |                          |                       |
| 10%                   |       |                          |                       |
|                       |       |                          |                       |
| 10%                   |       |                          |                       |
|                       |       |                          |                       |
| 9%                    |       |                          |                       |
|                       |       |                          |                       |
| 10%                   |       |                          |                       |
|                       |       |                          |                       |
| 14%                   |       |                          |                       |
|                       |       |                          |                       |
| 6%                    |       |                          |                       |
|                       |       |                          |                       |
| 16%                   |       |                          |                       |
|                       |       |                          |                       |
| 16%                   |       |                          |                       |
|                       |       |                          |                       |
| - New to the world    |       |                          |                       |
|                       |       |                          |                       |
| 8%                    |       |                          |                       |
|                       |       |                          |                       |
| 5%                    |       |                          |                       |
|                       |       |                          |                       |
| 10%                   |       |                          |                       |
|                       |       |                          |                       |
| 8%                    |       |                          |                       |
|                       |       |                          |                       |
| 13%                   |       |                          |                       |
|                       |       |                          |                       |
| 16%                   |       |                          |                       |
|                       |       |                          |                       |
| 17%                   |       |                          |                       |
|                       |       |                          |                       |
| 11%                   |       |                          |                       |
|                       |       |                          |                       |
| 5%                    |       |                          |                       |
|                       |       |                          |                       |
| 2%                    |       |                          |                       |
|                       |       |                          |                       |
| 5%                    |       |                          |                       |
|                       |       |                          |                       |
| 6%                    |       |                          |                       |
|                       |       |                          |                       |
| 13%                   |       |                          |                       |
|                       |       |                          |                       |
| 7%                    |       |                          |                       |
|                       |       |                          |                       |
| 10%                   |       |                          |                       |
|                       |       |                          |                       |
| 16%                   |       |                          |                       |
|                       |       |                          |                       |
| - Some new to world,  |       |                          |                       |
| some just new to      |       |                          |                       |
| business              |       |                          |                       |
|                       |       |                          |                       |
| No                    |       |                          |                       |
| 40%                   |       |                          |                       |
| 20%                   | 40%   | 46%                      |                       |
| 18%                   | 12%   | 20%                      | 20%                   |
| Don't know            |       |                          |                       |
| 1%                    |       |                          |                       |
| 0%                    | 0%    | 1%                       |                       |
| 1%                    | 1%    | 1%                       | 1%                    |
| Less than 3 yrs old   |       |                          |                       |
| 6%                    |       |                          |                       |
| 35%                   | 0%    | 0%                       |                       |
| 10%                   | 41%   | 0%                       | 0%                    |

 UKTI users are more likely to have introduced new products or services over the last 3 years than non-users.  Furthermore, a quarter of users indicate that at least some of these products were completely 'new to the world', compared to just 13% of nonusers. However, as detailed below, supported non-users are much closer to UKTI users in this respect, with over two-thirds having introduced new products or services in the past 3 years. 

| Total                 | Up to 5 years    | 6-10 years    | Over 10 years    |
|-----------------------|------------------|---------------|------------------|
|                       |                  |               |                  |
| Supp-                 | Unsupp           | Supp-         | Unsupp           |
| orted                 | -orted           | orted         | -orted           |
| Base                  |                  |               |                  |
|                       |                  |               |                  |
| 142                   |                  |               |                  |
|                       |                  |               |                  |
| 460                   |                  |               |                  |
|                       |                  |               |                  |
| 39                    |                  |               |                  |
|                       |                  |               |                  |
| 156                   |                  |               |                  |
|                       |                  |               |                  |
| 39                    |                  |               |                  |
|                       |                  |               |                  |
| 161                   |                  |               |                  |
|                       |                  |               |                  |
| 64                    |                  |               |                  |
|                       |                  |               |                  |
| 143                   |                  |               |                  |
|                       |                  |               |                  |
| Yes                   |                  |               |                  |
| 69%                   |                  |               |                  |
| 50%                   | 49%              | 42%           | 72%              |
| - New to the business |                  |               |                  |
|                       |                  |               |                  |
| 34%                   |                  |               |                  |
|                       |                  |               |                  |
| 29%                   |                  |               |                  |
|                       |                  |               |                  |
| 31%                   |                  |               |                  |
|                       |                  |               |                  |
| 26%                   |                  |               |                  |
|                       |                  |               |                  |
| 46%                   |                  |               |                  |
|                       |                  |               |                  |
| 29%                   |                  |               |                  |
|                       |                  |               |                  |
| 31%                   |                  |               |                  |
|                       |                  |               |                  |
| 29%                   |                  |               |                  |
|                       |                  |               |                  |
| - New to the sector   |                  |               |                  |
|                       |                  |               |                  |
| 16%                   |                  |               |                  |
|                       |                  |               |                  |
| 9%                    |                  |               |                  |
|                       |                  |               |                  |
| 18%                   |                  |               |                  |
|                       |                  |               |                  |
| 6%                    |                  |               |                  |
|                       |                  |               |                  |
| 18%                   |                  |               |                  |
|                       |                  |               |                  |
| 7%                    |                  |               |                  |
|                       |                  |               |                  |
| 16%                   |                  |               |                  |
|                       |                  |               |                  |
| 10%                   |                  |               |                  |
|                       |                  |               |                  |
| - New to the world    |                  |               |                  |
|                       |                  |               |                  |
| 13%                   |                  |               |                  |
|                       |                  |               |                  |
| 7%                    |                  |               |                  |
|                       |                  |               |                  |
| 0%                    |                  |               |                  |
|                       |                  |               |                  |
| 5%                    |                  |               |                  |
|                       |                  |               |                  |
| 5%                    |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| 17%                   |                  |               |                  |
|                       |                  |               |                  |
| 7%                    |                  |               |                  |
|                       |                  |               |                  |
| 6%                    |                  |               |                  |
|                       |                  |               |                  |
| 4%                    |                  |               |                  |
|                       |                  |               |                  |
| 0%                    |                  |               |                  |
|                       |                  |               |                  |
| 3%                    |                  |               |                  |
|                       |                  |               |                  |
| 3%                    |                  |               |                  |
|                       |                  |               |                  |
| 6%                    |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| 4%                    |                  |               |                  |
|                       |                  |               |                  |
| - Some new to world,  |                  |               |                  |
| some just new to      |                  |               |                  |
| business              |                  |               |                  |
|                       |                  |               |                  |
| No                    |                  |               |                  |
| 26%                   |                  |               |                  |
| 44%                   | 15%              | 25%           | 26%              |
| Don't know            |                  |               |                  |
| 0%                    |                  |               |                  |
| 0%                    | 0%               | 0%            | 3%               |
| Less than 3 yrs old   |                  |               |                  |
| 5%                    |                  |               |                  |
| 6%                    | 36%              | 33%           | 0%               |
|                       |                  |               |                  |
|                       |                  |               |                  |

## 4.8.8 Ip Protection

Non-user firms were as ked whether t hey had a pplied for or  o btained a ny pat ents, trademarks or other legal protection (either in the UK or overseas) for any of their products/services.  Equivalent data has also been provided for UKTI users from the main PIMS surveys. 

 
 
Base: All respondents (Base, Don't know) Non-Users  - Total (300, 5%), Up to 5 years old (99, 1%), 6-10 years old (100, 2%), Over 10 years old (101, 8%) 
Users - Total (3945, 4%), Up to 5 years old (952, 3%), 6-10 years old (664, 2%), Over 10 years old (2313, 6%) Reflecting t heir g enerally l ower i nvolvement i n i nnovation ac tivities ( as s een throughout this section of the report), non-users are significantly less likely than users to hold any I P pr otection.  T his difference i s particularly apparent for young f irms established i n t he l ast 5 years, w ith only 11%  of  non-users holding patents, trademarks or  ot her l egal pr otection compared t o 4 0% o f U KTI us ers i n t his ag e band. Amongst no n-users f irms, t hose t hat have obt ained some f orms o f ex port related support (from a non-UKTI source) are also more likely to be IP active.   
 

Supp-
Unsupp
orted 
| orted      | -orted    |
|------------|-----------|
| Base       |           |
|            |           |
| 142        |           |
|            |           |
| 460        |           |
|            |           |
| 39         |           |
|            |           |
| 156        |           |
|            |           |
| 39         |           |
|            |           |
| 161        |           |
|            |           |
| 64         |           |
|            |           |
| 143        |           |
|            |           |
| Yes        |           |
| 30%        |           |
| 15%        | 13%       |
| No         |           |
| 65%        |           |
| 82%        | 82%       |
| Don't know |           |
| 5%         |           |
| 3%         | 5%        |
|            |           |

 Those firms that held IP protection were asked to give more details of the type of IPP 
held, whether it covered the UK or overseas markets, and also whether they held any 'triadic patents' (i.e. patents covering the USA, Japan and Europe). It should be noted that this level of detail is only available for UKTI users from the Internationalisation Survey, and as a result the user data in the table below does not exactly match that in the preceding chart (which is based on the main PIMS 20-23 
surveys).  However, the PIMS and Internationalisation surveys are consistent in that they each report that 38% of UKTI users are IP active. 

 

|                                        |       | Non-Users (PIMS 2011)    | Users (2011 Internationalisation)    |
|----------------------------------------|-------|--------------------------|--------------------------------------|
| 6-10                                   | >10   | 6-10                     | >10                                  |
| Total                                  |       |                          |                                      |
| Up to 5                                |       |                          |                                      |
| years                                  | years | years                    |                                      |
| Total                                  |       |                          |                                      |
| Up to 5                                |       |                          |                                      |
| years                                  | years | years                    |                                      |
| Base                                   |       |                          |                                      |
|                                        |       |                          |                                      |
| 300                                    | 99    | 100                      | 101                                  |
| Type of IP Protection                  |       |                          |                                      |
| Patents                                |       |                          |                                      |
| 7%                                     |       |                          |                                      |
| 5%                                     | 7%    | 8%                       |                                      |
| 20%                                    | 24%   | 16%                      | 21%                                  |
| Trademarks                             |       |                          |                                      |
| 10%                                    |       |                          |                                      |
| 8%                                     | 11%   | 10%                      |                                      |
| 22%                                    | 20%   | 28%                      | 21%                                  |
| Other IP protection                    |       |                          |                                      |
| 5%                                     |       |                          |                                      |
| 0%                                     | 5%    | 7%                       |                                      |
| 12%                                    | 11%   | 16%                      | 10%                                  |
| Not IP active                          |       |                          |                                      |
| 83%                                    |       |                          |                                      |
| 89%                                    | 81%   | 82%                      |                                      |
| 62%                                    | 61%   | 62%                      | 62%                                  |
| Geographical Coverage of IP Protection |       |                          |                                      |
| UK only                                |       |                          |                                      |
| 6%                                     |       |                          |                                      |
| 4%                                     | 6%    | 6%                       |                                      |
| 7%                                     | 13%   | 7%                       | 6%                                   |
| Overseas only                          |       |                          |                                      |
| 1%                                     |       |                          |                                      |
| 0%                                     | 1%    | 1%                       |                                      |
| 2%                                     | 4%    | 1%                       | 2%                                   |
| Both                                   |       |                          |                                      |
| 11%                                    |       |                          |                                      |
| 7%                                     | 12%   | 11%                      |                                      |
| 29%                                    | 22%   | 29%                      | 30%                                  |
| Not IP active                          |       |                          |                                      |
| 83%                                    |       |                          |                                      |
| 89%                                    | 81%   | 82%                      |                                      |
| 62%                                    | 61%   | 62%                      | 62%                                  |
| Triadic Patents                        |       |                          |                                      |
| Yes                                    |       |                          |                                      |
| 2%                                     |       |                          |                                      |
| 0%                                     | 3%    | 3%                       |                                      |
| 5%                                     | 11%   | 4%                       | 5%                                   |
| No                                     | 98%   |                          |                                      |
| 100%                                   | 97%   | 97%                      | 95%                                  |

 UKTI users are more likely to hold each type of IP protection.  For both groups, the majority of firms with IP protection indicate that this covers both the UK and overseas markets.  H owever, only a s mall m inority of f irms hold t riadic patents (2% of nonusers vs. 5% of UKTI users). The table below provides similar analysis by supported and unsupported non-users.  
Please note that the data on the type of IP Protection held is only available from the 2011 Non-User survey (hence the proportion classed as 'Not IP Active' differs from that shown in the geographical coverage analysis).   
 

| Total                                  | Up to 5 years    | 6-10 years    | Over 10 years    |
|----------------------------------------|------------------|---------------|------------------|
|                                        |                  |               |                  |
| Supp-                                  | Unsupp           | Supp-         | Unsupp           |
| orted                                  | -orted           | orted         | -orted           |
| Base                                   |                  |               |                  |
|                                        |                  |               |                  |
| 142                                    |                  |               |                  |
|                                        |                  |               |                  |
| 460                                    |                  |               |                  |
|                                        |                  |               |                  |
| 39                                     |                  |               |                  |
|                                        |                  |               |                  |
| 156                                    |                  |               |                  |
|                                        |                  |               |                  |
| 39                                     |                  |               |                  |
|                                        |                  |               |                  |
| 161                                    |                  |               |                  |
|                                        |                  |               |                  |
| 64                                     |                  |               |                  |
|                                        |                  |               |                  |
| 143                                    |                  |               |                  |
|                                        |                  |               |                  |
| Type of IP Protection                  |                  |               |                  |
|                                        |                  |               |                  |
| Patents                                |                  |               |                  |
| 8%                                     |                  |               |                  |
| 7%                                     | 16%              | 3%            | 0%               |
| Trademarks                             |                  |               |                  |
| 17%                                    |                  |               |                  |
| 8%                                     | 11%              | 8%            | 12%              |
| Other IP protection                    |                  |               |                  |
| 5%                                     |                  |               |                  |
| 5%                                     | 0%               | 0%            | 0%               |
| Not IP active                          |                  |               |                  |
| 80%                                    |                  |               |                  |
| 84%                                    | 79%              | 91%           | 82%              |
| Geographical Coverage of IP Protection |                  |               |                  |
|                                        |                  |               |                  |
| UK only                                |                  |               |                  |
| 6%                                     |                  |               |                  |
| 5%                                     | 5%               | 3%            | 5%               |
| Overseas only                          |                  |               |                  |
| 1%                                     |                  |               |                  |
| 1%                                     | 0%               | 0%            | 0%               |
| Both                                   |                  |               |                  |
| 23%                                    |                  |               |                  |
| 9%                                     | 8%               | 5%            | 15%              |
| Not IP active                          |                  |               |                  |
| 70%                                    |                  |               |                  |
| 85%                                    | 87%              | 92%           | 79%              |
| Triadic Patents                        |                  |               |                  |
|                                        |                  |               |                  |
| Yes                                    |                  |               |                  |
| 5%                                     |                  |               |                  |
| 3%                                     | 0%               | 0%            | 3%               |
| No                                     | 95%              | 97%           | 100%             |

 Supported non-users are more likely to have trademarks than unsupported firms, and are also more likely to hold IP protection that covers overseas markets.   
 

## 4.9 Growth 4.9.1 Recent Growth

The following chart shows the growth of non-user firms over the last 5 y ears, along with comparative data for users of UKTI support (from PIMS). 



Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 2%), Up to 5 years old (99, 0%), 6-10 years old (100, 0%), Over 10 years old (101, 4%) 
Users - Total (3945, 1%), Up to 5 years old (952, 1%), 6-10 years old (664, 1%), Over 10 years old (2313, 2%) UKTI users demonstrate significantly higher recent growth than is the case for nonusers, with 71% of the former indicating that they have grown over the past 5 years compared to just 55% of non-users. In par ticular, U KTI us ers ar e m ore l ikely t o hav e ex perienced ' substantial g rowth'. This suggests that UKTI support is helping firms to grow, although it could also be the case that growing firms are more inclined to seek out external support. 

 

As det ailed below, supported f irms non-users are s ignificantly m ore l ikely t o hav e grown substantially over the past five years than unsupported ones. 

| Total               | Up to 5 years    | 6-10 years    | Over 10 years    |
|---------------------|------------------|---------------|------------------|
|                     |                  |               |                  |
| Supp-               | Unsupp           | Supp-         | Unsupp           |
| orted               | -orted           | orted         | -orted           |
| Base                |                  |               |                  |
|                     |                  |               |                  |
| 142                 |                  |               |                  |
|                     |                  |               |                  |
| 460                 |                  |               |                  |
|                     |                  |               |                  |
| 39                  |                  |               |                  |
|                     |                  |               |                  |
| 156                 |                  |               |                  |
|                     |                  |               |                  |
| 39                  |                  |               |                  |
|                     |                  |               |                  |
| 161                 |                  |               |                  |
|                     |                  |               |                  |
| 64                  |                  |               |                  |
|                     |                  |               |                  |
| 143                 |                  |               |                  |
|                     |                  |               |                  |
| Grown substantially |                  |               |                  |
| 19%                 |                  |               |                  |
| 9%                  | 23%              | 15%           | 26%              |
| Grown moderately    |                  |               |                  |
| 42%                 |                  |               |                  |
| 43%                 | 41%              | 45%           | 41%              |
| Remained same       |                  |               |                  |
| 19%                 |                  |               |                  |
| 26%                 | 15%              | 14%           | 23%              |
| Become smaller      |                  |               |                  |
| 15%                 |                  |               |                  |
| 18%                 | 3%               | 9%            | 10%              |
| < 1 year old        |                  |               |                  |
| 2%                  |                  |               |                  |
| 3%                  | 18%              | 15%           | 0%               |
| Don't know          | 2%               | 2%            | 0%               |
|                     |                  |               |                  |

## 4.9.2 Current Growth Objectives

Non-user bus inesses w ere also asked to i ndicate t he g rowth objectives for t heir business over t he n ext f ive y ears.  Comparative dat a has  al so been pr ovided for users of UKTI support (from PIMS). 

 
Base: All respondents (Base, Don't know/Refused, Not yet trading)  
Non-Users - Total (300, 3%, 0%), Up to 5 years old (99, 4%, 0%), 6-10 years old (100, 5%, 0%), Over 10 years old (101, 3%, 0%)  
Users - Total (3945, 3%, 2%), Up to 5 years old (952, 1%, 8%), 6-10 years old (664, 3%, 0%), Over 10 years old (2313, 3%, 0%) 
In addition to being less likely to have experienced growth over the last 5 years, nonuser businesses are also less optimistic about their growth prospects for the next five years.  Although the majority expect some level of growth, they are much less likely to be anticipating 'substantial' growth. Whilst an i dentical proportion o f s upported an d unsupported no n-users expect t o grow over the next 5 years, the former are significantly more likely to predict that this will be 'substantial'.  

| Total              | Up to 5 years    | 6-10 years    | Over 10 years    |
|--------------------|------------------|---------------|------------------|
|                    |                  |               |                  |
| Supp-              | Unsupp           | Supp-         | Unsupp           |
| orted              | -orted           | orted         | -orted           |
| Base               |                  |               |                  |
|                    |                  |               |                  |
| 142                |                  |               |                  |
|                    |                  |               |                  |
| 460                |                  |               |                  |
|                    |                  |               |                  |
| 39                 |                  |               |                  |
|                    |                  |               |                  |
| 156                |                  |               |                  |
|                    |                  |               |                  |
| 39                 |                  |               |                  |
|                    |                  |               |                  |
| 161                |                  |               |                  |
|                    |                  |               |                  |
| 64                 |                  |               |                  |
|                    |                  |               |                  |
| 143                |                  |               |                  |
|                    |                  |               |                  |
| Grow substantially |                  |               |                  |
| 31%                |                  |               |                  |
| 21%                | 38%              | 36%           | 38%              |
| Grow moderately    |                  |               |                  |
| 47%                |                  |               |                  |
| 57%                | 49%              | 51%           | 44%              |
| Remain same        |                  |               |                  |
| 18%                |                  |               |                  |
| 14%                | 8%               | 8%            | 13%              |
| Become smaller     |                  |               |                  |
| 2%                 |                  |               |                  |
| 5%                 | 0%               | 2%            | 5%               |
| Don't know         | 3%               | 3%            | 10%              |
|                    |                  |               |                  |
|                    |                  |               |                  |

## 4.9.4 'Innovative High Growth' Firms

The chart below shows the proportions of non-user businesses that are classified as being ' innovative hi gh g rowth' ( as per  t he de finition i n t he panel  ov erleaf). Comparative data has also been provided for users of UKTI support from the main PIMS surveys. 



Base: All respondents (Base) Non-Users - Total (300), Up to 5 years old (99), 6-10 years old (100), Over 10 years old (101)  
Users - Total (3945), Up to 5 years old (952), 6-10 years old (664), Over 10 years old (2313) UKTI appears to support a di sproportionally high number of innovative high growth firms, w ith us ers almost twice as  l ikely t o be c lassified i n t his w ay as  no n-users.  
However, t here ar e c learly s till s ignificant n umbers o f i nnovative hi gh g rowth f irms that UKTI do not reach, with 20% of non-users meeting this definition. As seen below, a s ignificant proportion of the innovative high growth firms that are not accessing U KTI s upport are us ing al ternative s ources o f ex port-related assistance instead, w ith 28% o f s upported non-users c lassified a s i nnovative high growth c ompared t o just 15 % of uns upported ones.  This s uggests t hat m any innovative high growth firms do hav e an appetite/need for export support, and this need could potentially be met by UKTI if they can be reached. 

| Total                  | Up to 5 years    | 6-10 years    | Over 10 years    |
|------------------------|------------------|---------------|------------------|
|                        |                  |               |                  |
| Supp-                  | Unsupp           | Supp-         | Unsupp           |
| orted                  | -orted           | orted         | -orted           |
| Base                   |                  |               |                  |
|                        |                  |               |                  |
| 142                    |                  |               |                  |
|                        |                  |               |                  |
| 460                    |                  |               |                  |
|                        |                  |               |                  |
| 39                     |                  |               |                  |
|                        |                  |               |                  |
| 156                    |                  |               |                  |
|                        |                  |               |                  |
| 39                     |                  |               |                  |
|                        |                  |               |                  |
| 161                    |                  |               |                  |
|                        |                  |               |                  |
| 64                     |                  |               |                  |
|                        |                  |               |                  |
| 143                    |                  |               |                  |
|                        |                  |               |                  |
| Innovative high growth |                  |               |                  |
| 28%                    |                  |               |                  |
| 15%                    | 31%              | 21%           | 31%              |
| Innovative other       |                  |               |                  |
| 47%                    |                  |               |                  |
| 45%                    | 38%              | 34%           | 44%              |
| Non-innovative         |                  |               |                  |
| 25%                    |                  |               |                  |
| 41%                    | 31%              | 45%           | 26%              |
|                        |                  |               |                  |

 The p anel b elow pr ovides de tails o f how ' innovative hi gh growth' firms have been defined for the purposes of this analysis. 

## 'Innovative High Growth' Firms

'Innovative high growth' firms are those that… 
 
- 
Are defined as being 'innovative' (using the standard definition) 
- 
And, expect to grow substantially over the next 5 years  

## 5. Export Strategy 5.1 Export Volume 5.1.1 Current Export Volume

The chart below shows the profile of the non-user businesses interviewed in terms of the proportion of their turnover that is accounted for by overseas sales.  Comparative data has also been provided for users of UKTI support (from PIMS). Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 3%), Up to 5 years old (99, 5%), 6-10 years old (100, 1%), Over 10 years old (101, 3%)  
Users - Total (3945, 6%), Up to 5 years old (952, 2%), 6-10 years old (664, 4%), Over 10 years old (2313, 7%) Overseas sales appear to be more important to UKTI users than non-users, in the sense that t he former i ndicate t hat these a ccount for a g reater proportion o f t heir overall sales.  Two-thirds of non-users report that exports contribute less than 10% of their total turnover, compared to only a third of users. It is also interesting to note that amongst non-users there is relatively little difference in export turnover by age of firm, but for users the importance of overseas sales (in terms of their contribution to total turnover) increases amongst more long established firms. 

As seen bel ow, supported n on-users t end t o be more engaged ex porters, w ith overseas sales accounting for a greater proportion of their turnover than is the case for unsupported non-users.  However, they still appear to be less intensive exporters than UKTI users. 

Whether Supported (2010/2011 Combined) 
Total 
Up to 5 years 
6-10 years 
Over 10 years 
 
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
Supp-
Unsupp
orted 
-orted 
orted 
-orted 
orted 
-orted 
orted 
-orted 
Base 
142 
460 
39 
156 
39 
161 
64 
143 
Not exporting 
3% 
14% 
10% 
22% 
5% 
12% 
2% 
12% 
Up to 10% 
42% 
50% 
50% 
46% 
44% 
53% 
39% 
51% 
11-15% 
6% 
5% 
0% 
3% 
3% 
4% 
8% 
6% 
16-25% 
8% 
7% 
8% 
7% 
10% 
6% 
8% 
8% 
26-50% 
12% 
9% 
10% 
11% 
18% 
9% 
11% 
8% 
51-75% 
11% 
5% 
0% 
4% 
8% 
7% 
14% 
4% 
Over 75% 
14% 
7% 
18% 
4% 
13% 
7% 
14% 
8% 
Don't know 
4% 
3% 
10% 
4% 
0% 
1% 
5% 
4% 


## 5.1.2 Anticipated Export Volume In 3 Years Time

In addition to providing their current export turnover, non-user firms were also asked whether they ex pected t hat the percentage o f t heir t urnover accounted f or by overseas sales would be higher, lower or the about the same in 3 years time. Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 2%), Up to 5 years old (99, 2%), 6-10 years old (100, 2%), Over 10 years old (101, 2%)  
Users - Total (3945, 4%), Up to 5 years old (952, 3%), 6-10 years old (664, 3%), Over 10 years old (2313, 4%) Non-users o f U KTI a ppear t o b e c onsiderably l ess optimistic/ambitious w hen i t comes t o overseas g rowth, with a l ittle u nder half ex pecting overseas s ales t o account for a greater proportion of their turnover in 3 years time, compared to around two-thirds of users.  This difference is apparent irrespective of age of firm. Although it is not statistically significant, it does appear that supported non-users are more likely to anticipate an increase in their export turnover. 

| Total          | Up to 5 years    | 6-10 years    | Over 10 years    |
|----------------|------------------|---------------|------------------|
|                |                  |               |                  |
| Supp-          | Unsupp           | Supp-         | Unsupp           |
| orted          | -orted           | orted         | -orted           |
| Base           |                  |               |                  |
|                |                  |               |                  |
| 142            |                  |               |                  |
|                |                  |               |                  |
| 460            |                  |               |                  |
|                |                  |               |                  |
| 39             |                  |               |                  |
|                |                  |               |                  |
| 156            |                  |               |                  |
|                |                  |               |                  |
| 39             |                  |               |                  |
|                |                  |               |                  |
| 161            |                  |               |                  |
|                |                  |               |                  |
| 64             |                  |               |                  |
|                |                  |               |                  |
| 143            |                  |               |                  |
|                |                  |               |                  |
| Higher         |                  |               |                  |
| 51%            |                  |               |                  |
| 42%            | 59%              | 46%           | 51%              |
| About the same |                  |               |                  |
| 37%            |                  |               |                  |
| 47%            | 28%              | 46%           | 28%              |
| Lower          |                  |               |                  |
| 9%             |                  |               |                  |
| 7%             | 3%               | 8%            | 21%              |
| Don't know     |                  |               |                  |
| 2%             |                  |               |                  |
| 3%             | 10%              | 1%            | 0%               |
|                |                  |               |                  |

 The c hart below t racks how  r esponses to this q uestion h ave c hanged over t ime. Please note that comparable data is only available for the last 3 years of the nonuser survey, and the last 2 years of the main PIMS user survey. The proportion of non-user firms expecting the proportion of their turnover accounted for by exports to increase has risen steadily over the last 2 years, and there has also been a small (but statistically significant) rise amongst UKTI u sers.  This suggests that internationalising firms are increasingly positive about their overseas prospects, perhaps due to a perception that the global economic situation is improving. 

 
Those firms t hat w ere ex pecting t heir export t urnover t o i ncrease ov er t he next 3 years were asked whether they would achieve this through entering new markets or by expanding in markets in which they were already operating.  
 

|                         |       | Non-Users (PIMS 2011)    | Users (PIMS 22-23)    |
|-------------------------|-------|--------------------------|-----------------------|
| 6-10                    | >10   | 6-10                     | >10                   |
| Total                   |       |                          |                       |
| Up to 5                 |       |                          |                       |
| years                   | years | years                    |                       |
| Total                   |       |                          |                       |
| Up to 5                 |       |                          |                       |
| years                   | years | years                    |                       |
| Base                    |       |                          |                       |
|                         |       |                          |                       |
| 300                     |       |                          |                       |
|                         |       |                          |                       |
| 99                      |       |                          |                       |
|                         |       |                          |                       |
| 100                     |       |                          |                       |
|                         |       |                          |                       |
| 101                     |       |                          |                       |
|                         |       |                          |                       |
| 1192                    |       |                          |                       |
|                         |       |                          |                       |
| 448                     |       |                          |                       |
|                         |       |                          |                       |
| 318                     |       |                          |                       |
|                         |       |                          |                       |
| 1147                    |       |                          |                       |
|                         |       |                          |                       |
| Entering new markets    |       |                          |                       |
| 10%                     |       |                          |                       |
| 16%                     | 12%   | 7%                       |                       |
| 23%                     | 34%   | 29%                      | 17%                   |
| Expanding in existing   |       |                          |                       |
| markets                 |       |                          |                       |
| 16%                     |       |                          |                       |
| 11%                     | 13%   | 18%                      |                       |
| 10%                     | 10%   | 11%                      | 9%                    |
| Both                    |       |                          |                       |
| 21%                     |       |                          |                       |
| 30%                     | 24%   | 18%                      |                       |
| 38%                     | 29%   | 33%                      | 43%                   |
| Not expecting growth in |       |                          |                       |
| export turnover         |       |                          |                       |
| 53%                     |       |                          |                       |
| 42%                     | 51%   | 57%                      |                       |
| 29%                     | 27%   | 26%                      | 30%                   |

 For both users and non-users, those firms expecting to see growth in export turnover were most likely to believe this would come from a c ombination of increases to the extensive m argins ( i.e. e ntering new  m arkets) an d t he i ntensive m argins ( i.e. expanding in current markets).  However, it is interesting to note that non-users were more l ikely t o ex pect g rowth t hrough i ncreased s ales t o existing markets t han by entering new markets, whereas the opposite was true for UKTI users. The table below provides further analysis by supported and unsupported non-users. Please no te t hat data is onl y av ailable from t he 20 11 no n-user s urvey, and base sizes are therefore low for some of the groups in this table. 

| Total                   | Up to 5 years    | 6-10 years    | Over 10 years    |
|-------------------------|------------------|---------------|------------------|
|                         |                  |               |                  |
| Supp-                   | Unsupp           | Supp-         | Unsupp           |
| orted                   | -orted           | orted         | -orted           |
| Base                    |                  |               |                  |
|                         |                  |               |                  |
| 61                      |                  |               |                  |
|                         |                  |               |                  |
| 239                     |                  |               |                  |
|                         |                  |               |                  |
| 19                      |                  |               |                  |
|                         |                  |               |                  |
| 80                      |                  |               |                  |
|                         |                  |               |                  |
| 17                      |                  |               |                  |
|                         |                  |               |                  |
| 83                      |                  |               |                  |
|                         |                  |               |                  |
| 25                      |                  |               |                  |
|                         |                  |               |                  |
| 76                      |                  |               |                  |
|                         |                  |               |                  |
| Entering new markets    |                  |               |                  |
| 2%                      |                  |               |                  |
| 12%                     | 16%              | 16%           | 0%               |
| Expanding in existing   |                  |               |                  |
| markets                 |                  |               |                  |
| 7%                      |                  |               |                  |
| 18%                     | 5%               | 13%           | 6%               |
| Both                    |                  |               |                  |
| 43%                     |                  |               |                  |
| 15%                     | 47%              | 26%           | 53%              |
| Not expecting growth in |                  |               |                  |
| export turnover         |                  |               |                  |
| 47%                     |                  |               |                  |
| 55%                     | 32%              | 45%           | 41%              |

 Even though the base sizes are low, it is clear that non-user firms that have obtained some form of external export-related support are considerably more likely to increase their overseas turnover by a combination of entering new markets and expanding in existing markets. 

 

## 5.2 Length Of Time Exporting

The chart below provides details of the length of time that non-user businesses have been doing business overseas.  Comparative data has also been provided for users of UKTI support (from PIMS). Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 2%), Up to 5 years old (99, 1%), 6-10 years old (100, 1%), Over 10 years old (101, 2%)  
Users - Total (3945, 1%), Up to 5 years old (952, 0%), 6-10 years old (664, 1%), Over 10 years old (2313, 1%)  
 
There is relatively little difference between users of UKTI and non-users, although the former are significantly more likely to be l ong-term exporters that have been doing business overseas for in excess of 20 years.   
 
Supported non-users are slightly more experienced overseas than unsupported nonusers, and are more likely to have been ex porting for more than 20 years and less likely to have not yet started doing business overseas. 

| Total             | Up to 5 years    | 6-10 years    | Over 10 years    |
|-------------------|------------------|---------------|------------------|
|                   |                  |               |                  |
| Supp-             | Unsupp           | Supp-         | Unsupp           |
| orted             | -orted           | orted         | -orted           |
| Base              |                  |               |                  |
|                   |                  |               |                  |
| 142               |                  |               |                  |
|                   |                  |               |                  |
| 460               |                  |               |                  |
|                   |                  |               |                  |
| 39                |                  |               |                  |
|                   |                  |               |                  |
| 156               |                  |               |                  |
|                   |                  |               |                  |
| 39                |                  |               |                  |
|                   |                  |               |                  |
| 161               |                  |               |                  |
|                   |                  |               |                  |
| 64                |                  |               |                  |
|                   |                  |               |                  |
| 143               |                  |               |                  |
|                   |                  |               |                  |
| Not exporting     |                  |               |                  |
| 3%                |                  |               |                  |
| 14%               | 10%              | 22%           | 5%               |
| Less than 2 years | 14%              | 13%           | 45%              |
| 2-5 years         | 15%              | 18%           | 45%              |
| 6-10 years        |                  |               |                  |
| 29%               | 26%              | 0%            | 0%               |
| 11-20 years       |                  |               |                  |
| 19%               | 19%              | 0%            | 0%               |
| Over 20 years     |                  |               |                  |
| 18%               | 11%              | 0%            | 0%               |
| Don't know        |                  |               |                  |
| 1%                |                  |               |                  |
| 1%                | 3%               | 0%            | 0%               |
|                   |                  |               |                  |

## 5.3 Number Of Markets 5.3.1 Current Number Of Markets

The chart below s hows t he n umber of overseas markets t hat n on-user f irms have done business in over the last year, along with comparative data for users of UKTI support.  P lease n ote t hat t he user da ta i s t aken from t he PIMS 14-17 Follow-Up surveys as this is the latest available comparable data, and as such it is slightly less current than the data for non-users. 



Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 0%), Up to 5 years old (99, 0%), 6-10 years old (100, 1%), Over 10 years old (99, 0%),  
Users - Total (400, 0%), Up to 5 years old (124, 0%), 6-10 years old (69, 0%), Over  10 years old (207, 0%) Overall, non -user bu sinesses ar e g enerally doing bus iness in f ewer ov erseas markets than users.  However, this is not the case amongst younger firms that have been es tablished for 5 y ears or  l ess, where t he profile o f us ers and non-users i s closely matched. 

 

As seen below, supported non-users have a much more similar profile to UKTI users and tend to be operating in more markets than their unsupported counterparts.  
 

| Total        | Up to 5 years    | 6-10 years    | Over 10 years    |
|--------------|------------------|---------------|------------------|
|              |                  |               |                  |
| Supp-        | Unsupp           | Supp-         | Unsupp           |
| orted        | -orted           | orted         | -orted           |
| Base         |                  |               |                  |
|              |                  |               |                  |
| 142          |                  |               |                  |
|              |                  |               |                  |
| 460          |                  |               |                  |
|              |                  |               |                  |
| 39           |                  |               |                  |
|              |                  |               |                  |
| 156          |                  |               |                  |
|              |                  |               |                  |
| 39           |                  |               |                  |
|              |                  |               |                  |
| 161          |                  |               |                  |
|              |                  |               |                  |
| 64           |                  |               |                  |
|              |                  |               |                  |
| 143          |                  |               |                  |
|              |                  |               |                  |
| None         |                  |               |                  |
| 6%           |                  |               |                  |
| 20%          | 13%              | 26%           | 8%               |
| 1-5          |                  |               |                  |
| 52%          |                  |               |                  |
| 49%          | 49%              | 46%           | 64%              |
| 6-10         |                  |               |                  |
| 13%          |                  |               |                  |
| 17%          | 15%              | 16%           | 15%              |
| 11-20        |                  |               |                  |
| 14%          |                  |               |                  |
| 8%           | 16%              | 6%            | 5%               |
| 21-50        |                  |               |                  |
| 11%          |                  |               |                  |
| 4%           | 8%               | 2%            | 5%               |
| More than 50 |                  |               |                  |
| 4%           |                  |               |                  |
| 3%           | 0%               | 2%            | 3%               |
| Don't know   |                  |               |                  |
| 0%           |                  |               |                  |
| 0%           | 0%               | 1%            | 0%               |


## 5.3.2 Anticipated Number Of Markets In 3 Years Time

In addition to providing data on their current number of markets, non-user firms were also asked to estimate whether this number would increase, decrease or remain the same over t he next 3 years.  Comparative dat a on both users and non-users has also been provided from the 2011 Internationalisation Survey. 

 

 
Base: All respondents (Base, Don't know/Refused) Non-Users  (PIMS) - Total (300, 1%), Up to 5 years old (99, 2%), 6-10 years old (100, 2%), Over 10 years old (101, 1%)  
Non-Users  (Int) - Total (655, 3%), Up to 5 years old (190, 1%), 6-10 years old (180, 4%), Over 10 years old (285, 3%)  
Users (Int) - Total (248, 3%), Up to 5 years old (46, 0%), 6-10 years old (76, 5%), Over  10 years old (126, 3%) The PIMS Non-User survey found that just over two-fifths of non-users (43%) expect to increase the number of overseas markets in which they do business over the next 3 y ears, and this is  consistent w ith t he no n-user da ta captured i n t he Internationalisation Survey (42%). In comparison, a pproaching t wo-thirds o f UKTI users ( 62%) expect t o expand into more markets over the next 3 years, which is consistent with the fact that users tend to have more ambitious growth aspirations (see Section 4.9.3) However, it should be noted that 15% of non-users were not exporting at the time they were surveyed, but qualified for interview because they had attempted to do so in t he p ast 2 y ears.  Although t hey w ere not  asked w hether t hey ex pected the number of markets t hey oper ated in t o i ncrease (and ar e s hown s eparately in t he chart above), they *were* asked if they expected to do business overseas in the next 5 
years and two-thirds indicated that they did.  If this is factored in, then the proportion of no n-users expecting to increase the number of markets they operate in rises to 52%. 



As seen below, those non-users that have received some form of non-UKTI exportrelated s upport ar e s ignificantly m ore l ikely t o ant icipate i ncreasing t heir ov erseas operations than in the case for unsupported non-users.  
 

| Total             | Up to 5 years    | 6-10 years    | Over 10 years    |
|-------------------|------------------|---------------|------------------|
|                   |                  |               |                  |
| Supp-             | Unsupp           | Supp-         | Unsupp           |
| orted             | -orted           | orted         | -orted           |
| Base              |                  |               |                  |
|                   |                  |               |                  |
| 142               |                  |               |                  |
|                   |                  |               |                  |
| 460               |                  |               |                  |
|                   |                  |               |                  |
| 39                |                  |               |                  |
|                   |                  |               |                  |
| 156               |                  |               |                  |
|                   |                  |               |                  |
| 39                |                  |               |                  |
|                   |                  |               |                  |
| 161               |                  |               |                  |
|                   |                  |               |                  |
| 64                |                  |               |                  |
|                   |                  |               |                  |
| 143               |                  |               |                  |
|                   |                  |               |                  |
| More markets      |                  |               |                  |
| 54%               | 37%              | 54%           | 43%              |
| The same          |                  |               |                  |
| 35%               | 42%              | 33%           | 26%              |
| Less markets      |                  |               |                  |
| 6%                | 4%               | 3%            | 6%               |
| Not yet exporting |                  |               |                  |
| 3%                |                  |               |                  |
| 14%               | 10%              | 22%           | 5%               |
| Don't know        |                  |               |                  |
| 3%                | 3%               | 0%            | 3%               |

## 5.3.3 Entered New Markets In Last 2 Years

Non-user businesses w ere also asked w hether t hey had s uccessfully ent ered or  
begun trading in any new countries in the previous 2 y ears and, if so, which ones. The chart below summarises these results and also provides comparative data for users of UKTI support (from the PIMS Follow-Up surveys). 

 

|                         |       | Non-Users (PIMS 2011)    | Users (PIMS 16-19 Follow-Up)    |
|-------------------------|-------|--------------------------|---------------------------------|
| 6-10                    | >10   | 6-10                     | >10                             |
| Total                   |       |                          |                                 |
| Up to 5                 |       |                          |                                 |
| years                   | years | years                    |                                 |
| Total                   |       |                          |                                 |
| Up to 5                 |       |                          |                                 |
| years                   | years | years                    |                                 |
| Base                    |       |                          |                                 |
|                         |       |                          |                                 |
| 300                     |       |                          |                                 |
|                         |       |                          |                                 |
| 99                      |       |                          |                                 |
|                         |       |                          |                                 |
| 100                     |       |                          |                                 |
|                         |       |                          |                                 |
| 101                     |       |                          |                                 |
|                         |       |                          |                                 |
| 391                     |       |                          |                                 |
|                         |       |                          |                                 |
| 99                      |       |                          |                                 |
|                         |       |                          |                                 |
| 73                      |       |                          |                                 |
|                         |       |                          |                                 |
| 219                     |       |                          |                                 |
|                         |       |                          |                                 |
| Yes                     |       |                          |                                 |
| 42%                     | 38%   | 52%                      | 39%                             |
| 53%                     | 43%   | 44%                      | 62%                             |
| - Europe                |       |                          |                                 |
| 23%                     |       |                          |                                 |
|                         |       |                          |                                 |
| 22%                     |       |                          |                                 |
|                         |       |                          |                                 |
| 33%                     |       |                          |                                 |
|                         |       |                          |                                 |
| 19%                     |       |                          |                                 |
|                         |       |                          |                                 |
| - Middle East & Africa  |       |                          |                                 |
| 11%                     |       |                          |                                 |
|                         |       |                          |                                 |
| 9%                      |       |                          |                                 |
|                         |       |                          |                                 |
| 11%                     |       |                          |                                 |
|                         |       |                          |                                 |
| 11%                     |       |                          |                                 |
|                         |       |                          |                                 |
| N/A                     |       |                          |                                 |
| - North America         |       |                          |                                 |
| 10%                     |       |                          |                                 |
|                         |       |                          |                                 |
| 9%                      |       |                          |                                 |
|                         |       |                          |                                 |
| 9%                      |       |                          |                                 |
|                         |       |                          |                                 |
| 10%                     |       |                          |                                 |
|                         |       |                          |                                 |
| - South & Latin America |       |                          |                                 |
| 2%                      |       |                          |                                 |
|                         |       |                          |                                 |
| 2%                      |       |                          |                                 |
|                         |       |                          |                                 |
| 3%                      |       |                          |                                 |
|                         |       |                          |                                 |
| 1%                      |       |                          |                                 |
|                         |       |                          |                                 |
| - Asia Pacific          |       |                          |                                 |
| 9%                      |       |                          |                                 |
|                         |       |                          |                                 |
| 9%                      |       |                          |                                 |
|                         |       |                          |                                 |
| 8%                      |       |                          |                                 |
|                         |       |                          |                                 |
| 9%                      |       |                          |                                 |
|                         |       |                          |                                 |
| No                      |       |                          |                                 |
| 43%                     | 35%   | 41%                      | 46%                             |
| 25%                     | 13%   | 37%                      | 27%                             |
| Don't know              |       |                          |                                 |
| 1%                      |       |                          |                                 |
| 0%                      | 1%    | 1%                       |                                 |
| 1%                      | 0%    | 0%                       | 2%                              |
| Not yet exporting       |       |                          |                                 |
| 15%                     | 26%   | 6%                       | 15%                             |
| 21%                     | 43%   | 19%                      | 10%                             |

 
Once ag ain, non-users s eem t o be a lit tle less dy namic i n t heir ov erseas development than UKTI users, with 42% and 53% respectively having entered new markets in the last 2 years.  This suggests that those firms actively pursuing export growth ( and p erhaps encountering pr oblems al ong t he w ay) ar e more inclined t o seek out UKTI's assistance. 

 

As seen for many of the areas relating to firm characteristics and export experience, supported n on-users are much c loser i n p rofile t o U KTI users, with 54%  having entered new markets in the last 2 years (compared to just 38% of unsupported nonusers).   
 

| Total                 | Up to 5 years    | 6-10 years    | Over 10 years    |
|-----------------------|------------------|---------------|------------------|
|                       |                  |               |                  |
| Supp-                 | Unsupp           | Supp-         | Unsupp           |
| orted                 | -orted           | orted         | -orted           |
| Base                  |                  |               |                  |
|                       |                  |               |                  |
| 142                   |                  |               |                  |
|                       |                  |               |                  |
| 460                   |                  |               |                  |
|                       |                  |               |                  |
| 39                    |                  |               |                  |
|                       |                  |               |                  |
| 156                   |                  |               |                  |
|                       |                  |               |                  |
| 39                    |                  |               |                  |
|                       |                  |               |                  |
| 161                   |                  |               |                  |
|                       |                  |               |                  |
| 64                    |                  |               |                  |
|                       |                  |               |                  |
| 143                   |                  |               |                  |
|                       |                  |               |                  |
| Yes                   |                  |               |                  |
| 54%                   |                  |               |                  |
| 38%                   | 56%              | 41%           | 49%              |
| - Europe              |                  |               |                  |
| 31%                   |                  |               |                  |
|                       |                  |               |                  |
| 21%                   |                  |               |                  |
|                       |                  |               |                  |
| 33%                   |                  |               |                  |
|                       |                  |               |                  |
| 22%                   |                  |               |                  |
|                       |                  |               |                  |
| 26%                   |                  |               |                  |
|                       |                  |               |                  |
| 24%                   |                  |               |                  |
|                       |                  |               |                  |
| 31%                   |                  |               |                  |
|                       |                  |               |                  |
| 19%                   |                  |               |                  |
|                       |                  |               |                  |
| - Middle East/Africa  |                  |               |                  |
| 18%                   |                  |               |                  |
|                       |                  |               |                  |
| 9%                    |                  |               |                  |
|                       |                  |               |                  |
| 18%                   |                  |               |                  |
|                       |                  |               |                  |
| 12%                   |                  |               |                  |
|                       |                  |               |                  |
| 15%                   |                  |               |                  |
|                       |                  |               |                  |
| 9%                    |                  |               |                  |
|                       |                  |               |                  |
| 19%                   |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| - North America       |                  |               |                  |
| 5%                    |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| 10%                   |                  |               |                  |
|                       |                  |               |                  |
| 10%                   |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| 7%                    |                  |               |                  |
|                       |                  |               |                  |
| 3%                    |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| - South/Latin America |                  |               |                  |
| 3%                    |                  |               |                  |
|                       |                  |               |                  |
| 1%                    |                  |               |                  |
|                       |                  |               |                  |
| 5%                    |                  |               |                  |
|                       |                  |               |                  |
| 1%                    |                  |               |                  |
|                       |                  |               |                  |
| 3%                    |                  |               |                  |
|                       |                  |               |                  |
| 2%                    |                  |               |                  |
|                       |                  |               |                  |
| 3%                    |                  |               |                  |
|                       |                  |               |                  |
| 1%                    |                  |               |                  |
|                       |                  |               |                  |
| - Asia Pacific        |                  |               |                  |
| 21%                   |                  |               |                  |
|                       |                  |               |                  |
| 9%                    |                  |               |                  |
|                       |                  |               |                  |
| 15%                   |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| 15%                   |                  |               |                  |
|                       |                  |               |                  |
| 8%                    |                  |               |                  |
|                       |                  |               |                  |
| 23%                   |                  |               |                  |
|                       |                  |               |                  |
| 9%                    |                  |               |                  |
|                       |                  |               |                  |
| No                    |                  |               |                  |
| 43%                   |                  |               |                  |
| 48%                   | 31%              | 38%           | 46%              |
| Don't know            |                  |               |                  |
| 0%                    |                  |               |                  |
| 1%                    | 3%               | 0%            | 0%               |
| Not yet exporting     |                  |               |                  |
| 3%                    |                  |               |                  |
| 14%                   | 10%              | 22%           | 5%               |
|                       |                  |               |                  |
|                       |                  |               |                  |
|                       |                  |               |                  |
|                       |                  |               |                  |

## 5.4 Overseas Regions

The table below shows the overseas regions that non-user firms have done business in over the last year, along with comparative data for users of UKTI support (from the 2011 Internationalisation S urvey).  Please not e that t his an alysis i s bas ed j ust o n those firms that have exported/reported overseas sales in the last year. 

|                             |       | Non-Users (PIMS 2011)    | Users (2011 Internationalisation)    |
|-----------------------------|-------|--------------------------|--------------------------------------|
| 6-10                        | >10   | 6-10                     | >10                                  |
| Total                       |       |                          |                                      |
| Up to 5                     |       |                          |                                      |
| years                       | years | years                    |                                      |
| Total                       |       |                          |                                      |
| Up to 5                     |       |                          |                                      |
| years                       | years | years                    |                                      |
| Base: All exporting in last |       |                          |                                      |
| year                        |       |                          |                                      |
|                             |       |                          |                                      |
| 237                         |       |                          |                                      |
|                             |       |                          |                                      |
| 69                          |       |                          |                                      |
|                             |       |                          |                                      |
| 90                          |       |                          |                                      |
|                             |       |                          |                                      |
| 78                          |       |                          |                                      |
|                             |       |                          |                                      |
| 242                         |       |                          |                                      |
|                             |       |                          |                                      |
| 43                          |       |                          |                                      |
|                             |       |                          |                                      |
| 74                          |       |                          |                                      |
|                             |       |                          |                                      |
| 125                         |       |                          |                                      |
|                             |       |                          |                                      |
| Countries in the EU         |       |                          |                                      |
| 86%                         | 86%   | 84%                      | 89%                                  |
| 92%                         | 93%   | 88%                      | 94%                                  |
| North America               |       |                          |                                      |
| 43%                         | 49%   | 43%                      | 43%                                  |
| 63%                         | 58%   | 59%                      | 65%                                  |
| Other countries outside     |       |                          |                                      |
| the EU & North America      |       |                          |                                      |
| 63%                         |       |                          |                                      |
| 66%                         | 60%   | 64%                      |                                      |
| 83%                         | 74%   | 82%                      | 84%                                  |
| Don't know                  | 0%    | 0%                       | 0%                                   |

 Reflecting t he fact t hat t hey t end t o b e operating in a greater nu mber of m arkets, UKTI users are also significantly more likely to be active in each of the three regions detailed ab ove.  In par ticular, us ers ar e comparatively m ore l ikely t o be doi ng business in North America and other countries outside the EU. Supported non-users are also more likely to be ac tive in markets outside of the EU 
and North America than their unsupported counterparts (but there is little difference between these groups when it comes to EU markets and North America). 

| Total                   | Up to 5 years    | 6-10 years    | Over 10 years    |
|-------------------------|------------------|---------------|------------------|
|                         |                  |               |                  |
| Supp-                   | Unsupp           | Supp-         | Unsupp           |
| orted                   | -orted           | orted         | -orted           |
| Base: All exporting in  |                  |               |                  |
| last year               |                  |               |                  |
|                         |                  |               |                  |
| 131                     |                  |               |                  |
|                         |                  |               |                  |
| 363                     |                  |               |                  |
|                         |                  |               |                  |
| 34                      |                  |               |                  |
|                         |                  |               |                  |
| 115                     |                  |               |                  |
|                         |                  |               |                  |
| 36                      |                  |               |                  |
|                         |                  |               |                  |
| 131                     |                  |               |                  |
|                         |                  |               |                  |
| 61                      |                  |               |                  |
|                         |                  |               |                  |
| 117                     |                  |               |                  |
|                         |                  |               |                  |
| Countries in the EU     |                  |               |                  |
| 85%                     |                  |               |                  |
| 89%                     | 88%              | 85%           | 80%              |
| North America           |                  |               |                  |
| 48%                     | 43%              | 47%           | 48%              |
| Other countries outside |                  |               |                  |
| the EU & North America  |                  |               |                  |
| 73%                     |                  |               |                  |
| 59%                     | 71%              | 63%           | 68%              |
| Don't know              | 0%               | 1%            | 0%               |
|                         |                  |               |                  |
|                         |                  |               |                  |
|                         |                  |               |                  |
|                         |                  |               |                  |

## 5.5 Use Of Agents/Distributors

The t able below s hows t he pr oportions of non -user f irms t hat em ploy agents or distributors when doing business overseas.  Please note that no comparative data is available for users of UKTI. 

|                   | Non-Users (PIMS 2011)    |
|-------------------|--------------------------|
| Total             |                          |
| Up to 5           |                          |
| years             |                          |
| 6-10 years        | >10 years                |
| Base              |                          |
|                   |                          |
| 300               |                          |
|                   |                          |
| 99                |                          |
|                   |                          |
| 100               |                          |
|                   |                          |
| 101               |                          |
|                   |                          |
| Yes               |                          |
| 28%               |                          |
| 16%               | 29%                      |
| - In all markets  |                          |
|                   |                          |
| 5%                |                          |
|                   |                          |
| 4%                |                          |
|                   |                          |
| 6%                |                          |
|                   |                          |
| 5%                |                          |
|                   |                          |
| - In most markets |                          |
|                   |                          |
| 5%                |                          |
|                   |                          |
| 1%                |                          |
|                   |                          |
| 2%                |                          |
|                   |                          |
| 7%                |                          |
|                   |                          |
| - In some markets |                          |
|                   |                          |
| 18%               |                          |
|                   |                          |
| 11%               |                          |
|                   |                          |
| 20%               |                          |
|                   |                          |
| 19%               |                          |
|                   |                          |
| No                |                          |
| 57%               |                          |
| 58%               | 65%                      |
| Don't know        |                          |
| 1%                |                          |
| 0%                | 0%                       |
| Not yet exporting |                          |
| 15%               |                          |
| 26%               | 6%                       |

 
 
Over a quarter of non-user firms use agents or distributors, with this most likely to be the c ase a mongst firms than have be en t rading for ov er 5 y ears.  In  most c ases 
these firms only use agents or distributors in selected markets, although there is a 
significant sub-set of firms (5%) who employ them in *every* overseas market that they 
operate in. The f ollowing table provides f urther a nalysis by  s upported a nd u nsupported no nusers, and clearly demonstrates that the former are more likely to sell through agents 
and distributors. 

| Total             | Up to 5 years    | 6-10 years    | Over 10 years    |
|-------------------|------------------|---------------|------------------|
|                   |                  |               |                  |
| Supp-             | Unsupp           | Supp-         | Unsupp           |
| orted             | -orted           | orted         | -orted           |
| Base              |                  |               |                  |
|                   |                  |               |                  |
| 142               |                  |               |                  |
|                   |                  |               |                  |
| 460               |                  |               |                  |
|                   |                  |               |                  |
| 39                |                  |               |                  |
|                   |                  |               |                  |
| 156               |                  |               |                  |
|                   |                  |               |                  |
| 39                |                  |               |                  |
|                   |                  |               |                  |
| 161               |                  |               |                  |
|                   |                  |               |                  |
| 64                |                  |               |                  |
|                   |                  |               |                  |
| 143               |                  |               |                  |
|                   |                  |               |                  |
| Yes               |                  |               |                  |
| 50%               |                  |               |                  |
| 21%               | 39%              | 14%           | 44%              |
| - In all markets  |                  |               |                  |
|                   |                  |               |                  |
| 8%                |                  |               |                  |
|                   |                  |               |                  |
| 6%                |                  |               |                  |
|                   |                  |               |                  |
| 5%                |                  |               |                  |
|                   |                  |               |                  |
| 3%                |                  |               |                  |
|                   |                  |               |                  |
| 10%               |                  |               |                  |
|                   |                  |               |                  |
| 5%                |                  |               |                  |
|                   |                  |               |                  |
| 8%                |                  |               |                  |
|                   |                  |               |                  |
| 7%                |                  |               |                  |
|                   |                  |               |                  |
| - In most markets |                  |               |                  |
|                   |                  |               |                  |
| 11%               |                  |               |                  |
|                   |                  |               |                  |
| 3%                |                  |               |                  |
|                   |                  |               |                  |
| 5%                |                  |               |                  |
|                   |                  |               |                  |
| 2%                |                  |               |                  |
|                   |                  |               |                  |
| 8%                |                  |               |                  |
|                   |                  |               |                  |
| 3%                |                  |               |                  |
|                   |                  |               |                  |
| 12%               |                  |               |                  |
|                   |                  |               |                  |
| 4%                |                  |               |                  |
|                   |                  |               |                  |
| - In some markets |                  |               |                  |
|                   |                  |               |                  |
| 31%               |                  |               |                  |
|                   |                  |               |                  |
| 12%               |                  |               |                  |
|                   |                  |               |                  |
| 28%               |                  |               |                  |
|                   |                  |               |                  |
| 9%                |                  |               |                  |
|                   |                  |               |                  |
| 23%               |                  |               |                  |
|                   |                  |               |                  |
| 14%               |                  |               |                  |
|                   |                  |               |                  |
| 33%               |                  |               |                  |
|                   |                  |               |                  |
| 13%               |                  |               |                  |
|                   |                  |               |                  |
| No                |                  |               |                  |
| 41%               |                  |               |                  |
| 62%               | 51%              | 64%           | 44%              |
| Don't know        |                  |               |                  |
| 6%                |                  |               |                  |
| 2%                | 0%               | 1%            | 8%               |
| Not yet exporting |                  |               |                  |
| 3%                |                  |               |                  |
| 14%               | 10%              | 22%           | 5%               |


## 5.6 Changes In Overseas Strategy

Non-user firms w ere asked w hether, c ompared w ith a y ear ag o, t hey w ere now focussing more or less on ov erseas markets.  R esults are shown below, along with comparative data for users of UKTI support (from the PIMS Follow-Up surveys). Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 2%), Up to 5 years old (99, 1%), 6-10 years old (100, 1%), Over 10 years old (101, 2%) 
Users - Total (391, 0%), Up to 5 years old (99, 0%), 6-10 years old (73, 0%), Over 10 years old (219, 0%) The majority of non-user businesses have not changed their overseas focus in the last y ear, al though a  q uarter ar e n ow f ocussing m ore o n overseas markets.  I n contrast, U KTI us ers are al most t wice as  l ikely t o hav e i ncreased t heir focus o n overseas markets in the past year (which could be as a r esult of the support they received). As seen below, supported non-users are again closer to UKTI users and are much more likely to have increased their focus on overseas markets in the past year. 

 

| Total             | Up to 5 years    | 6-10 years    | Over 10 years    |
|-------------------|------------------|---------------|------------------|
|                   |                  |               |                  |
| Supp-             | Unsupp           | Supp-         | Unsupp           |
| orted             | -orted           | orted         | -orted           |
| Base              |                  |               |                  |
|                   |                  |               |                  |
| 142               |                  |               |                  |
|                   |                  |               |                  |
| 460               |                  |               |                  |
|                   |                  |               |                  |
| 39                |                  |               |                  |
|                   |                  |               |                  |
| 156               |                  |               |                  |
|                   |                  |               |                  |
| 39                |                  |               |                  |
|                   |                  |               |                  |
| 161               |                  |               |                  |
|                   |                  |               |                  |
| 64                |                  |               |                  |
|                   |                  |               |                  |
| 143               |                  |               |                  |
|                   |                  |               |                  |
| Focussing more on |                  |               |                  |
| overseas markets  |                  |               |                  |
| 37%               |                  |               |                  |
| 22%               | 38%              | 19%           | 21%              |
| Focussing less on |                  |               |                  |
| overseas markets  |                  |               |                  |
| 6%                |                  |               |                  |
| 9%                | 8%               | 8%            | 18%              |
| No change         |                  |               |                  |
| 55%               |                  |               |                  |
| 69%               | 51%              | 72%           | 62%              |
| Don't know        |                  |               |                  |
| 1%                |                  |               |                  |
| 1%                | 3%               | 0%            | 0%               |
|                   |                  |               |                  |
|                   |                  |               |                  |

 The c hart below t racks how  r esponses to this q uestion h ave c hanged over t ime. Please note that comparable data is only available for the last 2 years. 

Base: All respondents (Base, Don't know/Refused) The proportion of non-user firms revising their overseas strategy has fallen slightly over the last year, although this difference is not statistically significant.  There has been no change in this respect amongst UKTI users. 

 

## 5.7 Changes To Products & Services

Firms were also asked whether their experiences of doing business overseas had led them to make any significant changes to their products or services and, if so, whether these changes were designed for overseas customers, UK customers or both.   


Base: All those exporting (Base, Don't know/Refused) Non-Users - Total (253, 0%), Up to 5 years old (73, 1%), 6-10 years old (94, 1%), Over 10 years old (86, 0%)  
Users - Total (391, 0%), Up to 5 years old (99, 0%), 6-10 years old (73, 0%), Over 10 years old (219, 0%) Over a quarter (29%) of non-users have made changes to their products or services as a r esult of their overseas experiences.  This is significantly lower than the 45% 
seen amongst users of UKTI support, suggesting t hat UKTI can play an i mportant role in helping businesses realise the scale or type of adjustments that are required to trade successfully in overseas markets. For bot h us ers an d non-users, the c hanges m ade by f irms to t heir pr oducts and services tend to have been for both overseas and UK customers. Those firms making changes to their products or services were also asked to indicate the extent to which these had been a benefit to their business.  


Base: All making changes to products/services as result of overseas experiences (Base, Don't know/Refused)  
Non-Users - Total (71, 0%), Up to 5 years old (17, 0%), 6-10 years old (29, 0%), Over 10 years old (25, 0%)  
Users - Total (184, 4%), Up to 5 years old (49, 0%), 6-10 years old (31, 19%), Over 10 years old (104, 1%) In almost all cases where firms have made changes to their products or services, this is seen as having been of at least some benefit to the firm, and this is true of both users and non-users of UKTI.  Overall, 65% of non-users and 62% of users judged this to have been a significant benefit (i.e. scored 4-5 out of 5). 

 
The following t able pr ovides f urther a nalysis by  s upported a nd u nsupported no nusers. 

| Total                                                                                  | Up to 5 years    | 6-10 years    | Over 10 years    |
|----------------------------------------------------------------------------------------|------------------|---------------|------------------|
|                                                                                        |                  |               |                  |
| Supp-                                                                                  | Unsupp           | Supp-         | Unsupp           |
| orted                                                                                  | -orted           | orted         | -orted           |
| Base: All exporters                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 135                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 389                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 35                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 122                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 37                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 141                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 63                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 126                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| Whether doing business overseas has led to significant changes to products or services |                  |               |                  |
| Yes                                                                                    |                  |               |                  |
| 34%                                                                                    |                  |               |                  |
| 24%                                                                                    | 48%              | 21%           | 32%              |
| - For overseas customers                                                               |                  |               |                  |
|                                                                                        |                  |               |                  |
| 8%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 5%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 12%                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 5%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 11%                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 2%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 6%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 6%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| - For UK customers                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 0%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 2%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 0%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 1%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 0%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 1%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 0%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 2%                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| - For both                                                                             |                  |               |                  |
|                                                                                        |                  |               |                  |
| 26%                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 18%                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 37%                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 15%                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 22%                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 22%                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 25%                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| 17%                                                                                    |                  |               |                  |
|                                                                                        |                  |               |                  |
| No                                                                                     |                  |               |                  |
| 66%                                                                                    |                  |               |                  |
| 75%                                                                                    | 49%              | 79%           | 68%              |
| Don't know                                                                             |                  |               |                  |
| 0%                                                                                     |                  |               |                  |
| 0%                                                                                     | 3%               | 1%            | 0%               |
| Extent that these changes have been a benefit to the business                          |                  |               |                  |
| Base: All making changes                                                               |                  |               |                  |
|                                                                                        |                  |               |                  |
| 49                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 92                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 17                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 25                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 12                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 35                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 20                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 32                                                                                     |                  |               |                  |
|                                                                                        |                  |               |                  |
| 5 - To a critical extent                                                               |                  |               |                  |
| 28%                                                                                    |                  |               |                  |
| 28%                                                                                    | 30%              | 20%           | 50%              |
| 4                                                                                      |                  |               |                  |
| 43%                                                                                    |                  |               |                  |
| 26%                                                                                    | 30%              | 27%           | 25%              |
| 3                                                                                      |                  |               |                  |
| 23%                                                                                    |                  |               |                  |
| 28%                                                                                    | 20%              | 33%           | 13%              |
| 2                                                                                      |                  |               |                  |
| 2%                                                                                     |                  |               |                  |
| 11%                                                                                    | 10%              | 7%            | 0%               |
| 1                                                                                      |                  |               |                  |
| 2%                                                                                     |                  |               |                  |
| 6%                                                                                     | 0%               | 7%            | 13%              |
| Don't know                                                                             |                  |               |                  |
| 2%                                                                                     |                  |               |                  |
| 1%                                                                                     | 10%              | 7%            | 0%               |

 Non-users that have accessed some form of export-related support are more likely to have c hanged t heir products or s ervices a s a r esult o f doing business ov erseas.  
They are also more likely to judge these changes to have been a significant benefit (71% and 54% respectively scoring 4-5 out of 5). 

 

## 6. Motivations For Exporting 6.1 Summary

Non-user b usinesses were r ead o ut a  l ist of p ossible r easons for doi ng b usiness overseas and asked to indicate the extent that each one applied to them, using a 5-
point s cale w here 5  meant ' agree s trongly' an d 1 meant ' disagree s trongly'.  This question w as as ked s lightly di fferently depe nding on t he firms' c urrent ex port experience and ambitions, as follows: 

- 
Firms ex porting f or up t o 2 y ears ( or not yet ex porting) were as ked a bout 
reasons for *starting to sell overseas* 
- 
Firms exporting for over 2 y ears and ex pecting their overseas sales to grow 
were asked about reasons for *seeking to increase their overseas sales* 
- 
Firms exporting f or ov er 2 years an d not expecting t heir ov erseas s ales t o 
grow were asked about reasons for *doing business overseas*  
 
The f ollowing table summarises t he proportion of f irms in e ach o f t hese g roups agreeing (i.e. scoring 4 -5 on the 5-point scale) that they do bus iness overseas for each of the reasons tested.   
 

|                        |            |          |          | Non-Users (PIMS 2011)    | Users (PIMS 20-23)    |
|------------------------|------------|----------|----------|--------------------------|-----------------------|
| Starting               | Increasing | Doing    | Starting | Increasing               | Doing                 |
| Total                  | selling    | overseas | business | Total                    | selling               |
| Proportion agreeing    |            |          |          |                          |                       |
| (4-5 out of 5) that    |            |          |          |                          |                       |
| they export for the    |            |          |          |                          |                       |
| following reasons...   |            |          |          |                          |                       |
| overseas               | sales      | overseas | overseas | sales                    | overseas              |
| Base                   |            |          |          |                          |                       |
|                        |            |          |          |                          |                       |
| 300                    | 99         |          |          |                          |                       |
|                        |            |          |          |                          |                       |
| 90                     |            |          |          |                          |                       |
|                        |            |          |          |                          |                       |
| 111                    |            |          |          |                          |                       |
|                        |            |          |          |                          |                       |
| 3945                   | 998        |          |          |                          |                       |
|                        |            |          |          |                          |                       |
| 2032                   |            |          |          |                          |                       |
|                        |            |          |          |                          |                       |
| 915                    |            |          |          |                          |                       |
|                        |            |          |          |                          |                       |
| 48%                    | 51%        |          |          |                          |                       |
| 59%                    | 37%        | 79%      | 73%      | 84%                      | 76%                   |
| To enable you to       |            |          |          |                          |                       |
| achieve a level of     |            |          |          |                          |                       |
| growth otherwise not   |            |          |          |                          |                       |
| possible               |            |          |          |                          |                       |
| 52%                    | 49%        |          |          |                          |                       |
| 64%                    | 45%        | 60%      | 52%      | 64%                      | 60%                   |
| To allow you to more   |            |          |          |                          |                       |
| fully utilise existing |            |          |          |                          |                       |
| capacity               |            |          |          |                          |                       |
| 31%                    | 26%        |          |          |                          |                       |
| 43%                    | 25%        | 49%      | 44%      | 57%                      | 39%                   |
| To reduce your         |            |          |          |                          |                       |
| dependence on the      |            |          |          |                          |                       |
| UK market              |            |          |          |                          |                       |
| To improve your firm's |            |          |          |                          |                       |
| profile or credibility |            |          |          |                          |                       |
| 41%                    | 45%        |          |          |                          |                       |
| 50%                    | 33%        | 63%      | 61%      | 68%                      | 56%                   |
| 67%                    | 48%        |          |          |                          |                       |
| 63%                    | 82%        | 61%      | 49%      | 63%                      | 71%                   |
| You received orders    |            |          |          |                          |                       |
| or enquiries from      |            |          |          |                          |                       |
| overseas customers     |            |          |          |                          |                       |
| 23%                    | 23%        |          |          |                          |                       |
| -                      | -          | 30%      | 30%      | -                        | -                     |
| If exporting <2 years: |            |          |          |                          |                       |
| You had personal       |            |          |          |                          |                       |
| connections overseas   |            |          |          |                          |                       |
| or a desire to travel  |            |          |          |                          |                       |
| abroad                 |            |          |          |                          |                       |
|                        |            |          |          |                          |                       |
|                        |            |          |          |                          |                       |

 Internationalising firms are clearly influenced by a range of different motivations, both reactive an d proactive.  H owever, a t t he total level, the m ost w idespread export motivation amongst non-user firms is a reactive one, with 67% agreeing that they do so in response to orders or enquiries from overseas customers. Around half of all non-users firms also export because it enables them to achieve a level of growth that would otherwise not be possible and because it allows them to more fully utilise their existing capacity. 

 
However, there are a number of clear differences between the 3 groups of non-user firms.  Those firms that have been operating overseas for a number of years but are not expecting ex port s ales t o i ncrease ar e s ignificantly m ore l ikely t o be ac ting i n response t o or ders or enq uiries from ov erseas c ustomers, but c omparatively l ess likely to be motivated by growth or improved profile/credibility. In c ontrast, t hose es tablished exporters t hat w ere ant icipating g rowth i n ov erseas sales w ere m ore l ikely t o hi ghlight g rowth f acilitation, use o f existing c apacity, reduced dependence on the UK and improved profile as key motivations for seeking to expand t heir ov erseas operations.  H owever, i t s hould be no ted t hat t here are clearly a num ber o f d ifferent motivations influencing these f irms, and al most twothirds o f t his g roup s till i ndicated that one o f t he primary dr ivers o f t heir overseas growth ambitions was orders or requests from overseas customers. Interestingly, f irms that have only recently started doing business overseas (or are not y et ex porting) are t he l east l ikely t o be ac ting i n r esponse to e nquiries from overseas customers.  This indicates that many firms take the initial decision to enter overseas markets based on more strategic reasons rather than in direct response to confirmed i nterest i n their pr oducts/services.  Although i t i s t he l east w idespread motivation, it is also interesting to note that almost a quarter of new e xporters are influenced by personal connections overseas or a desire to travel abroad. There are a number of key differences in the export motivations of UKTI users and non-users.  T he former ar e s ignificantly m ore l ikely t o be i nfluenced by t he m ore proactive or strategic reasons, such as enabling growth, reducing dependence on the UK m arket a nd i mproving t heir pr ofile.  H owever, U KTI us ers ar e l ess i nclined t o highlight customer orders/enquiries as a significant motivation. 

 
The table below provides similar analysis, but this time by age of firm.  P lease note that t he base sizes shown in brackets refer t o the number of interviews with f irms exporting less than 2 years, who were t he only group to be asked about personal connections or a desire to travel abroad.  
 

|                            |       |       |         | Non-Users (PIMS 2011)    | Users (PIMS 20-23)    |
|----------------------------|-------|-------|---------|--------------------------|-----------------------|
| Up to 5                    | 6-10  | >10   | Up to 5 | 6-10                     | >10                   |
| Total                      | years | years | Years   | Total                    | years                 |
| Proportion agreeing (4-5   |       |       |         |                          |                       |
| out of 5) that they        |       |       |         |                          |                       |
| export for the following   |       |       |         |                          |                       |
| reasons...                 |       |       |         |                          |                       |
| old                        | old   | old   | old     | old                      | old                   |
| 99                         | 100   | 101   | 3945    | 952                      | 664                   |
| Base                       |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |
| 300                        |       |       |         |                          |                       |
| (99)                       |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |
| (61)                       |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |
| (19)                       |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |
| (19)                       |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |
| (998)                      |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |
| (619)                      |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |
| (162)                      |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |
| (217)                      |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |
| 48%                        | 53%   | 52%   | 45%     | 79%                      | 80%                   |
| To enable you to achieve   |       |       |         |                          |                       |
| a level of growth          |       |       |         |                          |                       |
| otherwise not possible     |       |       |         |                          |                       |
| To allow you to more fully |       |       |         |                          |                       |
| utilise existing capacity  |       |       |         |                          |                       |
| 52%                        | 53%   | 52%   | 52%     | 60%                      | 57%                   |
| 31%                        | 28%   | 27%   | 34%     | 49%                      | 45%                   |
| To reduce your             |       |       |         |                          |                       |
| dependence on the UK       |       |       |         |                          |                       |
| market                     |       |       |         |                          |                       |
| To improve your firm's     |       |       |         |                          |                       |
| profile or credibility     |       |       |         |                          |                       |
| 41%                        | 46%   | 47%   | 38%     | 63%                      | 66%                   |
| 67%                        | 69%   | 69%   | 66%     | 61%                      | 59%                   |
| You received orders or     |       |       |         |                          |                       |
| enquiries from overseas    |       |       |         |                          |                       |
| customers                  |       |       |         |                          |                       |
| 23%                        | 33%   | 16%   | 16%     | 30%                      | 36%                   |
| If exporting <2 years:     |       |       |         |                          |                       |
| You                        |       |       |         |                          |                       |
| had personal connections   |       |       |         |                          |                       |
| overseas or a desire to    |       |       |         |                          |                       |
| travel abroad              |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |
|                            |       |       |         |                          |                       |

 For bot h users and non-users of UKTI, t here is generally little difference in export motivations by age of firm.  However, non-user firms that have been established over 
10 y ears a ppear t o be s lightly l ess m otivated by  g rowth and  i mproving t heir profile/credibility but are a little more likely to be influenced by a desire to reduce their dependence on the UK market. 

 
The following t able provides a more det ailed a nalysis o f t he export be nefits experienced by supported and unsupported non-users.  Please note that this data is only av ailable from t he 2 011 N on-User s urvey s o bas e s izes ar e l ow f or s ome groups. 

|                        |         |       |        | Total    | Up to 5 years    | 6-10 years    | Over 10 years    |
|------------------------|---------|-------|--------|----------|------------------|---------------|------------------|
| Supp-                  | Unsupp- | Supp- | Unsupp | Supp-    | Unsupp           | Supp-         | Unsupp           |
| orted                  | orted   | orted | -orted | orted    | -orted           | orted         | -orted           |
| Proportion agreeing    |         |       |        |          |                  |               |                  |
| (4-5 out of 5) that    |         |       |        |          |                  |               |                  |
| they export for the    |         |       |        |          |                  |               |                  |
| following reasons...   |         |       |        |          |                  |               |                  |
| Base                   |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |
| 61 (13)                |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |
| 239 (86)               |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |
| 19 (11)                |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |
| 80 (50)                |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |
| 17 (0)                 |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |
| 83 (19)                |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |
| 25 (2)                 |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |
| 76 (17)                |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |
| 57%                    |         |       |        |          |                  |               |                  |
| 45%                    | 74%     | 48%   | 65%    | 49%      | 52%              | 42%           |                  |
| To enable you to       |         |       |        |          |                  |               |                  |
| achieve a level of     |         |       |        |          |                  |               |                  |
| growth otherwise not   |         |       |        |          |                  |               |                  |
| possible               |         |       |        |          |                  |               |                  |
| 60%                    |         |       |        |          |                  |               |                  |
| 50%                    | 53%     | 53%   | 53%    | 52%      | 64%              | 49%           |                  |
| To allow you to more   |         |       |        |          |                  |               |                  |
| fully utilise existing |         |       |        |          |                  |               |                  |
| capacity               |         |       |        |          |                  |               |                  |
| 45%                    |         |       |        |          |                  |               |                  |
| 27%                    | 32%     | 28%   | 29%    | 27%      | 52%              | 28%           |                  |
| To reduce your         |         |       |        |          |                  |               |                  |
| dependence on the UK   |         |       |        |          |                  |               |                  |
| market                 |         |       |        |          |                  |               |                  |
| To improve your firm's |         |       |        |          |                  |               |                  |
| profile or credibility |         |       |        |          |                  |               |                  |
| 50%                    |         |       |        |          |                  |               |                  |
| 39%                    | 63%     | 43%   | 47%    | 47%      | 48%              | 34%           |                  |
| 72%                    |         |       |        |          |                  |               |                  |
| 66%                    | 74%     | 68%   | 88%    | 65%      | 68%              | 66%           |                  |
| You received orders or |         |       |        |          |                  |               |                  |
| enquiries from         |         |       |        |          |                  |               |                  |
| overseas customers     |         |       |        |          |                  |               |                  |
| 28%                    |         |       |        |          |                  |               |                  |
| 22%                    | 45%     | 30%   | -      | 16%      | 0%               | 18%           |                  |
| If exporting <2 years: |         |       |        |          |                  |               |                  |
| You had personal       |         |       |        |          |                  |               |                  |
| connections overseas   |         |       |        |          |                  |               |                  |
| or a desire to travel  |         |       |        |          |                  |               |                  |
| abroad                 |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |
|                        |         |       |        |          |                  |               |                  |

 
Non-user f irms that ha ve r eceived s ome type o f export-related s upport tend t o highlight a wider range of export motivations and are more likely to agree to each of the individual reasons than unsupported non-users. 

## 6.2 Individual Motivations

6.2.1 Level Of Growth Otherwise Not Possible The chart below shows the extent to which the non-user firms interviewed agree that they do business overseas in order to achieve a level of growth that would otherwise not be possible.  Comparative data has been provided for users of UKTI support. 



Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 3%), Up to 5 years old (99, 3%), 6-10 years old (100, 1%), Over 10 years old (101, 4%)  
Users - Total (3945, 1%), Up to 5 years old (952, 0%), 6-10 years old (664, 0%), Over 10 years old (2313, 1%) Over t hree-quarters of U KTI us ers agree ( i.e. s core 4-5 out o f 5)  that t hey do business overseas because of the potential for growth that it offers, compared to just less t han half o f no n-user f irms.  Older no n-users that have be en es tablished f or more than 10 years appear least likely to be motivated by this. 

## 6.2.2 Utilisation Of Existing Capacity

The chart below shows the extent to which the non-user firms interviewed agree that they do b usiness overseas i n order t o more f ully utilise their existing capacity. Comparative data has been provided for users of UKTI support. 

Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 2%), Up to 5 years old (99, 1%), 6-10 years old (100, 1%), Over 10 years old (101, 3%)  
Users - Total (3945, 1%), Up to 5 years old (952, 1%), 6-10 years old (664, 1%), Over 10 years old (2313, 1%) UKTI users are somewhat more likely to export because it enables them to better use their existing c apacity, with 60%  ag reeing t hat t his i s a r eason for doi ng bus iness overseas compared to 52% of non-users.  There is little difference by age of firm in this respect. 


6.2.3 Reduce Dependence On UK Market The chart below shows the extent to which the non-user firms interviewed agree that they do bus iness overseas in order to reduce their dependence on the UK market. Comparative data has been provided for users of UKTI support. 

Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 2%), Up to 5 years old (99, 2%), 6-10 years old (100, 1%), Over 10 years old (101, 2%)  
Users - Total (3945, 1%), Up to 5 years old (952, 1%), 6-10 years old (664, 0%), Over 10 years old (2313, 1%) Less than a third of non-users firms agree that they do business overseas to reduce their dependence on the UK market, and 28% disagree strongly that this is the case.  
In c ontrast, a l arge num ber o f U KTI c lients ar e dr iven by  a des ire t o di versify geographically ( and hence s pread t heir r isk), w ith hal f i ndicating t hat r educing dependence on the UK is a significant motivation.  For both users and non-users, this motivation is more likely to apply to older firms. 

 

6.2.4 Profile & Credibility The chart below shows the extent to which the non-user firms interviewed agree that they do  b usiness o verseas i n order to i mprove t heir pr ofile or  c redibility. Comparative data has been provided for users of UKTI support. 

 
 
Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 1%), Up to 5 years old (99, 1%), 6-10 years old (100, 2%), Over 10 years old (101, 1%)  
Users - Total (3945, 1%), Up to 5 years old (952, 0%), 6-10 years old (664, 0%), Over 10 years old (2313, 1%) Whilst improving their profile and credibility is a k ey motivation for UKTI users, with almost t wo-thirds agreeing t hat t his i s a  r eason for doing b usiness ov erseas, onl y two-fifths of non-user firms view this as a factor that influences them to export. There is some indication that this reason is least applicable to older non-user firms.  
 

6.2.5 Orders & Enquiries The chart below shows the extent to which the non-user firms interviewed agree that they do bus iness ov erseas b ecause t hey k eep g etting or ders or  enq uiries f rom overseas customers.  C omparative dat a h as bee n pr ovided for us ers o f U KTI support. 

 
Base: All respondents (Base, Don't know/Refused)  
Non-Users - Total (300, 2%), Up to 5 years old (99, 1%), 6-10 years old (100, 2%), Over 10 years old (101, 2%)  
Users - Total (3945, 1%), Up to 5 years old (952, 0%), 6-10 years old (664, 1%), Over 10 years old (2313, 1%) Over two-thirds of non-users agree that they export because they receive orders or enquiries from overseas customers, and this is+ the only one of the various export motivations t ested w here hi gher l evels o f a greement are s een for non -users t han users. This suggests that non-users are more likely to be purely reactive exporters, whereas UKTI users tend to also be influenced by a range of more strategic/proactive factors.  
That s aid, i t i s s till t he c ase t hat w ell ov er hal f o f U KTI users are m otivated by customer orders/enquiries, indicating that serendipity still plays a significant part in the overseas activities of this group. 

6.2.6 Personal Connections Or Desire To Travel The chart below shows the extent to which the non-user firms interviewed agree that they do b usiness overseas because they have personal connections overseas or a desire t o t ravel abr oad.  C omparative dat a has  be en pr ovided for us ers o f U KTI support.  Please no te t hat t his q uestion w as onl y as ked to firms t hat hav e b een exporting for less than 2 years (or not yet started exporting). 

 
 
Base: All exporting for less than 2 years (Base, Don't know/Refused)  
Non-Users - Total (99, 3%), Up to 5 years old (61, 2%), 6-10 years old (19, 0%), Over 10 years old (19, 5%)  
Users - Total (998, 1%), Up to 5 years old (619, 1%), 6-10 years old (162, 0%), Over 10 years old (217, 1%) A s ignificant minority o f new ex porters w ere motivated t o s tart doi ng bus iness overseas because they either had existing connections/contacts in overseas markets or a desire to travel abroad.  Although it appears that is more likely to be the case for UKTI users, this apparent difference is not statistically significant. 

 

## 7. Barriers To Overseas Trade 7.1 Summary

Non-user businesses were read out a list of issues that they might have had to tackle when trying to develop the export side of their business and asked whether or not they had ever experienced any difficulties with them.  For each one that had been a difficulty they were then asked the extent, using a 5-point scale where 5 meant it had been 'extremely difficult' and 1 meant it had 'not been at all difficult'. These r esults ar e s ummarised i n t he following t able, w ith t he p roportion of firms encountering e ach o f t hese difficulties ' to a s ignificant' ex tent s hown ( i.e. the proportion giving a s core of either '4' or '5' on the 5-point scale).  Comparative data has also been provided for users of UKTI support (from the 2011 Internationalisation Survey)4
.   

|                             |       | Non-Users (PIMS 2011)    | Users (2011 Internationalisation)    |
|-----------------------------|-------|--------------------------|--------------------------------------|
| 6-10                        | >10   | 6-10                     | >10                                  |
| Total                       |       |                          |                                      |
| Up to 5                     |       |                          |                                      |
| Proportion experiencing     |       |                          |                                      |
| significant difficulties    |       |                          |                                      |
| years                       | years | years                    |                                      |
| Total                       |       |                          |                                      |
| Up to 5                     |       |                          |                                      |
| years                       | years | years                    |                                      |
| Base                        |       |                          |                                      |
|                             |       |                          |                                      |
| 300                         |       |                          |                                      |
|                             |       |                          |                                      |
| 99                          |       |                          |                                      |
|                             |       |                          |                                      |
| 100                         |       |                          |                                      |
|                             |       |                          |                                      |
| 101                         |       |                          |                                      |
|                             |       |                          |                                      |
| 242                         |       |                          |                                      |
|                             |       |                          |                                      |
| 43                          |       |                          |                                      |
|                             |       |                          |                                      |
| 74                          |       |                          |                                      |
|                             |       |                          |                                      |
| 125                         |       |                          |                                      |
|                             |       |                          |                                      |
| Dealing with legal or tax   |       |                          |                                      |
| regulations and standards   |       |                          |                                      |
| 11%                         |       |                          |                                      |
| 21%                         | 8%    | 10%                      |                                      |
| 33%                         | 33%   | 27%                      | 35%                                  |
| Protecting your             |       |                          |                                      |
| intellectual property       |       |                          |                                      |
| 7%                          |       |                          |                                      |
| 12%                         | 7%    | 6%                       |                                      |
| 18%                         | 19%   | 24%                      | 16%                                  |
| Ensuring you get paid and   |       |                          |                                      |
| enforcing contracts         |       |                          |                                      |
| 10%                         |       |                          |                                      |
| 6%                          | 13%   | 10%                      |                                      |
| 22%                         | 23%   | 23%                      | 21%                                  |
| Dealing with customs        |       |                          |                                      |
| procedures or paperwork     |       |                          |                                      |
| 14%                         |       |                          |                                      |
| 10%                         | 12%   | 16%                      |                                      |
| 30%                         | 30%   | 36%                      | 28%                                  |
| Identifying who to make     |       |                          |                                      |
| contact with                |       |                          |                                      |
| 14%                         |       |                          |                                      |
| 17%                         | 14%   | 14%                      |                                      |
| 30%                         | 30%   | 31%                      | 30%                                  |
| Establishing an initial     |       |                          |                                      |
| dialogue                    |       |                          |                                      |
| 9%                          |       |                          |                                      |
| 8%                          | 9%    | 9%                       |                                      |
| 24%                         | 23%   | 15%                      | 27%                                  |
| 9%                          |       |                          |                                      |
| 14%                         | 12%   | 7%                       |                                      |
| 28%                         | 26%   | 20%                      | 31%                                  |
| Building relationships with |       |                          |                                      |
| influencers/decision        |       |                          |                                      |
| makers                      |       |                          |                                      |
| 13%                         |       |                          |                                      |
| 18%                         | 11%   | 12%                      |                                      |
| 18%                         | 16%   | 22%                      | 18%                                  |
| Obtaining basic             |       |                          |                                      |
| information about an        |       |                          |                                      |
| overseas market             |       |                          |                                      |
| Finding the necessary       |       |                          |                                      |
| management time             |       |                          |                                      |
| 15%                         |       |                          |                                      |
| 17%                         | 17%   | 14%                      |                                      |
| 29%                         | 30%   | 26%                      | 30%                                  |
| Language barriers           |       |                          |                                      |
| 6%                          | 12%   | 6%                       | 5%                                   |
| 23%                         | 16%   | 20%                      | 25%                                  |
| Cultural differences        |       |                          |                                      |
| 4%                          |       |                          |                                      |
| 8%                          | 2%    | 4%                       |                                      |
| 9%                          |       |                          |                                      |
| 15%                         | 6%    | 9%                       |                                      |
| 26%                         | 28%   | 23%                      | 26%                                  |
| Preference for doing        |       |                          |                                      |
| business with firms from    |       |                          |                                      |
| own country                 |       |                          |                                      |

 Firms receiving support from UKTI are consistently more likely to have encountered the various barriers to overseas trade, and this is the case irrespective of age of firm.  
This suggests that firms that do not encounter significant barriers are, as a result, less inclined to seek out assistance from UKTI. 

 
                                            

It should be noted that non-user firms tend to be less 'involved' exporters than UKTI 
users, in the sense that they operate in fewer markets and overseas sales account for a lower proportion of their total turnover.  As a result, it is likely that non-user firms have been exposed to fewer barriers due to their typically more limited experience of overseas business. There i s s ome evidence t hat y ounger n on-user firms are m ore l ikely t o hav e encountered many of the barriers, such as issues with legal/tax regulations, problems protecting intellectual property, difficulty obtaining basic information about a market, language bar riers an d c ultural di fferences.  H owever, ol der non -users f irms are slightly m ore l ikely t o hav e ex perienced p ayment-related pr oblems an d c ustoms difficulties.  Interestingly, t he s ame pattern i s not  s een a mongst U KTI us ers, for whom there are generally few differences by age of firm in the proportion reporting each barrier.  However, the relatively low base sizes for UKTI users should be taken into account when analysing the data at this level. These barriers have been summarised t hrough a g rouping of the individual issues and difficulties tested into seven themes, as detailed below. 

Firms have been classified as encountering significant difficulties with 'legal & 
regulatory barriers' if they scored '4' or '5' on a 5-point scale for… 
- 
Dealing with legal or tax regulations and standards overseas 
- 
Or, Protecting your intellectual property 
- 
Or, Ensuring you get paid and enforcing contracts 
 
Firms have been classified as encountering significant difficulties with 'customs 
barriers' if they scored '4' or '5' on a 5-point scale for… 
- 
Dealing with customs procedures or paperwork 
 
Firms have been classified as encountering significant difficulties with 'contact 
barriers' if they scored '4' or '5' on a 5-point scale for… 
- 
Identifying who to make contact with in the first instance 
- 
Or, Establishing an initial dialogue with prospective customers or business 
partners 
- 
Or, Building relationships with key influencers or decision-makers 
 
Firms have been classified as encountering significant difficulties with 'information 
barriers' if they scored '4' or '5' on a 5-point scale for… 
- 
Obtaining basic information about an overseas market 
 
Firms have been classified as encountering significant difficulties with 'resource 
barriers' if they scored '4' or '5' on a 5-point scale for… 
- 
Finding the necessary management time to devote to doing business in an overseas country 
 
Firms have been classified as encountering significant difficulties with 'language and 
cultural barriers' if they scored '4' or '5' on a 5-point scale for… 
- 
Language barriers 
- 
Or, Cultural differences outside of language barriers 
 
Firms have been classified as encountering significant difficulties with **'bias barriers'** if 
they scored '4' or '5' on a 5-point scale for… 
- 
A preference on the part of overseas customers for doing business with firms from their own country 
 
The table below summarises the barriers to overseas trade experienced by non-user firms.  Comparative data has also been provided for users of UKTI support (from the 2011 Internationalisation Survey).   
 

|                          |       |       |         | Non-Users (PIMS 2011)    | Users (2011 Internationalisation)    |
|--------------------------|-------|-------|---------|--------------------------|--------------------------------------|
| Up to 5                  | 6-10  | >10   | Up to 5 | 6-10                     | >10                                  |
| Total                    | years | years | Years   | Total                    | years                                |
| Proportion experiencing  |       |       |         |                          |                                      |
| significant difficulties |       |       |         |                          |                                      |
| old                      | old   | old   | old     | old                      | old                                  |
| Base                     |       |       |         |                          |                                      |
|                          |       |       |         |                          |                                      |
| 300                      |       |       |         |                          |                                      |
|                          |       |       |         |                          |                                      |
| 99                       |       |       |         |                          |                                      |
|                          |       |       |         |                          |                                      |
| 100                      |       |       |         |                          |                                      |
|                          |       |       |         |                          |                                      |
| 101                      |       |       |         |                          |                                      |
|                          |       |       |         |                          |                                      |
| 242                      |       |       |         |                          |                                      |
|                          |       |       |         |                          |                                      |
| 43                       |       |       |         |                          |                                      |
|                          |       |       |         |                          |                                      |
| 74                       |       |       |         |                          |                                      |
|                          |       |       |         |                          |                                      |
| 125                      |       |       |         |                          |                                      |
|                          |       |       |         |                          |                                      |
| At least 1 sig. barrier  |       |       |         |                          |                                      |
| 46%                      | 54%   | 46%   | 44%     | 83%                      | 84%                                  |
| - Legal & regulatory     |       |       |         |                          |                                      |
| 22%                      | 27%   | 22%   | 20%     | 51%                      | 56%                                  |
| - Customs                |       |       |         |                          |                                      |
| 14%                      | 10%   | 12%   | 16%     | 30%                      | 30%                                  |
| - Contacts               |       |       |         |                          |                                      |
| 20%                      | 26%   | 22%   | 17%     | 46%                      | 42%                                  |
| - Information            |       |       |         |                          |                                      |
| 13%                      | 18%   | 11%   | 12%     | 18%                      | 16%                                  |
| - Resource               |       |       |         |                          |                                      |
| 15%                      | 17%   | 17%   | 14%     | 29%                      | 30%                                  |
| - Language & cultural    |       |       |         |                          |                                      |
| 9%                       | 14%   | 6%    | 8%      | 23%                      | 16%                                  |
| - Bias                   |       |       |         |                          |                                      |
| 9%                       | 15%   | 6%    | 9%      | 26%                      | 28%                                  |
| No sig. barriers         |       |       |         |                          |                                      |
| 54%                      | 46%   | 54%   | 56%     | 17%                      | 16%                                  |

 As seen previously, users of UKTI's services are much more likely than non-users to encounter significant bar riers, w ith 83%  and 46%  r espectively r eporting di fficulties with at  l east one o f these i ssues.  Amongst bot h users an d no n-users o f U KTI support, the most widely encountered barriers are 'legal & regulatory' and 'contacts' 
barriers (i.e. making and developing contacts overseas).   
 
Amongst no n-users, y oung firms t hat h ave be en es tablished for no  more t han 5 years are most likely to experience barriers, implying that this is the group that could benefit most from UKTI assistance.  
 
As det ailed bel ow, s upported n on-users ar e m ore l ikely t o hav e enc ountered significant barriers to overseas trade than unsupported businesses.  Given that UKTI users were also considerably more likely to report barriers, this implies that firms that encounter barriers are more inclined to seek support. 

 

|                          |        |       |        | Total    | Up to 5 years    | 6-10 years    | Over 10 years    |
|--------------------------|--------|-------|--------|----------|------------------|---------------|------------------|
| Supp-                    | Unsupp | Supp- | Unsupp | Supp-    | Unsupp           | Supp-         | Unsupp           |
| orted                    | -orted | orted | -orted | orted    | -orted           | orted         | -orted           |
| Proportion               |        |       |        |          |                  |               |                  |
| experiencing             |        |       |        |          |                  |               |                  |
| significant difficulties |        |       |        |          |                  |               |                  |
| Base                     |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 142                      |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 460                      |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 39                       |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 156                      |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 39                       |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 161                      |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 64                       |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| 143                      |        |       |        |          |                  |               |                  |
|                          |        |       |        |          |                  |               |                  |
| At least 1 sig. barrier  |        |       |        |          |                  |               |                  |
| 64%                      | 41%    | 59%   | 46%    | 64%      | 45%              | 66%           | 38%              |
| - Legal & regulatory     |        |       |        |          |                  |               |                  |
| 32%                      | 21%    | 31%   | 26%    | 23%      | 23%              | 34%           | 19%              |
| - Customs                |        |       |        |          |                  |               |                  |
| 14%                      | 14%    | 11%   | 10%    | 12%      | 12%              | 16%           | 16%              |
| - Contacts               |        |       |        |          |                  |               |                  |
| 18%                      | 20%    | 31%   | 20%    | 26%      | 23%              | 14%           | 19%              |
| - Information            |        |       |        |          |                  |               |                  |
| 13%                      | 11%    | 20%   | 12%    | 18%      | 12%              | 11%           | 11%              |
| - Resource               |        |       |        |          |                  |               |                  |
| 26%                      | 13%    | 33%   | 15%    | 26%      | 14%              | 25%           | 11%              |
| - Language & cultural    |        |       |        |          |                  |               |                  |
| 13%                      | 8%     | 18%   | 13%    | 5%       | 7%               | 14%           | 6%               |
| - Bias                   |        |       |        |          |                  |               |                  |
| 12%                      | 9%     | 23%   | 11%    | 8%       | 10%              | 11%           | 8%               |
| No sig. barriers         |        |       |        |          |                  |               |                  |
| 36%                      | 59%    | 41%   | 54%    | 36%      | 55%              | 34%           | 62%              |
|                          |        |       |        |          |                  |               |                  |

## 7.2 Individual Barriers 7.2.1 Regulations & Standards (Legal & Regulatory Barrier)

The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have experienced barriers r elating t o ' dealing w ith l egal or tax r egulations and standards overseas'.  Comparative data has also been provided for users of UKTI 
support. 

 
 
Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 4%), Up to 5 years ago (99, 6%), 6-10 years old (100, 2%), Over 10 years old (101, 4%)  
Users - Total (242, 2%), Up to 5 years ago (43, 0%), 6-10 years old (74, 3%), Over 10 years old (125, 2%) It i s very c lear t hat users o f U KTI s upport are m ore l ikely t han n on-users to ha ve experienced di fficulties w ith r egulations and s tandards w hilst trying t o ex port overseas.  Overall, 65% of UKTI users have had s ome level of difficulty with these issues (i.e. scored 2-5 out of 5), compared to just 24% of non-users. 


## 7.2.2 Ip Protection (Legal & Regulatory Barrier)

The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have ex perienced b arriers r elating t o ' protecting y our i ntellectual pr operty'. Comparative data has also been provided for users of UKTI support. 



Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 3%), Up to 5 years ago (99, 5%), 6-10 years old (100, 4%), Over 10 years old (101, 2%)  
Users - Total (242, 4%), Up to 5 years ago (43, 2%), 6-10 years old (74, 3%), Over 10 years old (125, 5%) Only 14 % of non -user f irms h ave ex perienced any problems i n pr otecting t heir intellectual pr operty w hen doi ng bus iness o verseas, c ompared w ith 52% o f U KTI users. This difference is consistent with the fact that non-users are much less likely to be IP 
active or  be  e ngaged i n i nnovation ac tivities ( i.e. t hey have f ewer employees engaged in R&D and product/service development, they are less likely to commission external pr oduct d evelopment s ervices and they ar e l ess l ikely t o have i ntroduced 'new to the world' products or services recently). 

 

7.2.3 Ensuring Payment (Legal & Regulatory Barrier) The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have experienced barriers relating to 'ensuring you get paid and enforcing contacts'. Comparative data has also been provided for users of UKTI support. 



Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 2%), Up to 5 years ago (99, 3%), 6-10 years old (100, 1%), Over 10 years old (101, 2%)  
Users - Total (242, 3%), Up to 5 years ago (43, 2%), 6-10 years old (74, 5%), Over 10 years old (125, 2%) Users of  U KTI ar e more t han t wice as  l ikely as non-users t o have ex perienced problems in g etting paid w hen doi ng bu siness ov erseas, w ith 60% and 25 % respectively i ndicating t hat t hey hav e had at l east s ome di fficulty i n t his r espect (scoring 2-5 out of 5).  This difference may be connected to the fact that UKTI users are significantly more likely to be doing business in countries outside of the EU and North America. 

7.2.4 Customs Procedures & Paperwork (Customs Barrier) The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have ex perienced b arriers r elating t o ' dealing w ith c ustoms pr ocedures a nd paperwork'.  Comparative data has also been provided for users of UKTI support. 

 

 
 
Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 2%), Up to 5 years ago (99, 2%), 6-10 years old (100, 1%), Over 10 years old (101, 3%)  
Users - Total (242, 2%), Up to 5 years ago (43, 2%), 6-10 years old (74, 1%), Over 10 years old (125, 2%) Less t han a t hird o f non-user firms ( 31%) hav e ex perienced a ny di fficulties w ith customs pr ocedures or pa perwork i n t he course of c arrying o ut t heir ov erseas business (i.e. scored 2 -5 out of 5).  However, amongst UKTI users t his proportion increases sharply to 66%. 

 

7.2.5 Identifying Contacts (Contacts Barrier) The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have experienced barriers relating to 'identifying who to make contact with in the first instance'.  Comparative data has also been provided for users of UKTI support. 



Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 2%), Up to 5 years ago (99, 4%), 6-10 years old (100, 1%), Over 10 years old (101, 1%)  
Users - Total (242, 2%), Up to 5 years ago (43, 0%), 6-10 years old (74, 0%), Over 10 years old (125, 2%) Contact facilitation is clearly an i ssue for a large number of UKTI clients, with 62% reporting at  least some level of difficulty in t his respect (and 30% indicating it has been a significant barrier).  This may well have been one of the issues that prompted many of these firms to access UKTI support. Non-users firms are less likely to identify this as a problem, which is consistent with the fact t hat no n-users ar e m ore l ikely t o i ndicate t hat t hey do  b usiness ov erseas because they receive orders/enquires from overseas customers.  This implies that in many cases these firms do not need to identify contacts (as the customers approach them).  H owever, it is still the case that over a quarter of non-users do r eport some degree of difficulty with identifying contacts, suggesting that a significant proportion of these firms would benefit from the type of contact-facilitation assistance provided by UKTI through services such as OMIS. 

## 7.2.6 Initial Dialogue (Contacts Barrier)

The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have experienced barriers relating to 'establishing an initial dialogue with prospective customers or business partners'.  Comparative data has also been provided for users of UKTI support.  


Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 1%), Up to 5 years ago (99, 3%), 6-10 years old (100, 1%), Over 10 years old (101, 1%)  
Users - Total (242, 4%), Up to 5 years ago (43, 0%), 6-10 years old (74, 4%), Over 10 years old (125, 5%) As well as being more likely than non-users to encounter difficulties in identifying who to contact in the first instance, users of UKTI support are also much more likely to have ex perienced problems establishing an i nitial dialogue w ith t hese c ontacts.  
Overall, 67% of users report some degree of difficulty in this area, compared to just 21% of non-user firms. Those non-user firms that had reported no or very small difficulties with establishing an initial dialogue (i.e. 1-2 out of 5) were asked why this had not been a problem for them. 

Non-Users (PIMS 2011) 
 
6-10 years 
>10 years 
Total 
Up to 5 
years old 
old 
old  
Base 
300 
99 
100 
101 
Already had contacts 
38% 
43% 
36% 
38% 
Customers initiated the contact 
45% 
38% 
48% 
46% 
Other reason 
4% 
6% 
6% 
2% 
Don't know 
4% 
3% 
0% 
6% 
Initial dialogue was a barrier (3-5 out of 5) 
19% 
16% 
20% 
19% 

 As detailed above, there is a fairly even split between firms indicating that they had not had difficulty establishing an initial dialogue because they already had contacts and t hose i ndicating t hat i t w as bec ause t he c ustomers t hemselves i nitiated t he contact. 

## 7.2.7 Building Relationships (Contacts Barrier)

The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have experienced barriers r elating t o ' building r elationships with key i nfluencers or decision-makers'.  Comparative dat a has a lso bee n pr ovided for us ers o f U KTI 
support. 

 
 
Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 0%), Up to 5 years ago (99, 1%), 6-10 years old (100, 1%), Over 10 years old (101, 0%)  
Users - Total (242, 1%), Up to 5 years ago (43, 0%), 6-10 years old (74, 0%), Over 10 years old (125, 1%) There is also a marked contrast in the proportion of users and non-users reporting problems w ith b uilding r elationships w ith k ey c ontacts ov erseas, w ith 71 % of  t he former experiencing at least some difficulties in this respect compared to just 22% of the latter. 

 

## 7.2.8 Obtaining Information (Information Barrier)

The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have experienced barriers relating to 'obtaining basic information about an overseas market'.  Comparative data has also been provided for users of UKTI support. 



Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 1%), Up to 5 years ago (99, 2%), 6-10 years old (100, 3%), Over 10 years old (101, 0%)  
Users - Total (242, 1%), Up to 5 years ago (43, 0%), 6-10 years old (74, 0%), Over 10 years old (125, 1%) Less than a quarter of non-user firms claim to have had difficulties in obtaining basic information about an  ov erseas m arket (with ju st 13% j udging i t t o h ave be en a  
significant pr oblem), whereas 67% o f U KTI us ers have experienced at l east s ome problems in this area.  Again, this may be linked to the more reactive nature of nonusers w hen i t c omes t o overseas bus iness ( i.e. t hey t ypically r espond t o orders/enquiries from overseas customers), meaning that they have less need to find information about potential overseas markets. 

## 7.2.9 Management Time (Resource Barrier)

The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have ex perienced barriers r elating t o ' finding t he nec essary m anagement t ime t o devote to doing business in an overseas country'.  Comparative data has also been provided for users of UKTI support. 

 
 
Base: All respondents (Base, Don't know/Refused)  
Non-Users - Total (300, 2%), Up to 5 years ago (99, 5%), 6-10 years old (100, 1%), Over 10 years old (101, 2%)  
Users - Total (242, 1%), Up to 5 years ago (43, 0%), 6-10 years old (74, 1%), Over 10 years old (125, 1%) Lack o f m anagement time was the most w idespread barrier f or non-user f irms, although only 15% felt that this was a significant problem (i.e. scoring 4-5 out of 5) and two-thirds did not report any difficulties in this respect.  In contrast, 72% of UKTI 
users had experienced at least some problems with this (29% to a significant extent). Given t hat t hey t end to have fewer em ployees, i t might be expected t hat younger firms would be more likely to have difficulty finding the required management time to do business overseas, but there is no evidence that this is the case.  Furthermore, when looking at these results by size of firm, it appears that larger non-user firms are in fact more likely to be constrained by a lack of management resources, with a third of those with 100 or more staff reporting significant problems in this respect. 

7.2.10 Language (Language & Cultural Barrier) The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have experienced barriers relating to 'language barriers'.  Comparative data has also been provided for users of UKTI support5
. Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 1%), Up to 5 years ago (99, 3%), 6-10 years old (100, 1%), Over 10 years old (101, 1%)  
Users - Total (242, 1%), Up to 5 years ago (43, 0%), 6-10 years old (74, 0%), Over 10 years old (125, 1%) It is clear that non-users are considerably less likely to have experienced significant language barriers than UKTI users.  As seen below, in most cases this was because firms had been able to use English when dealing with their overseas customers. 

Non-Users (PIMS 2011) 
 
6-10 years 
>10 years 
Total 
Up to 5 
years old 
old 
old  
Base 
300 
99 
100 
101 
Always been able to use English 
72% 
65% 
73% 
73% 
Have staff with necessary language skills 
17% 
7% 
20% 
19% 
Other reason 
5% 
7% 
2% 
5% 
Don't know 
0% 
2% 
0% 
0% 
Language was a barrier (3-5 out of 5) 
14% 
18% 
16% 
12% 

 

## 7.2.11 Cultural Differences (Language & Cultural Barrier)

The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have experienced barriers r elating t o ' cultural di fferences outside of l anguage barriers'.  Comparative data has also been provided for users of UKTI support6
. Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 1%), Up to 5 years ago (99, 4%), 6-10 years old (100, 1%), Over 10 years old (101, 0%)  
Users - Total (242, 1%), Up to 5 years ago (43, 0%), 6-10 years old (74, 0%), Over 10 years old (125, 1%) Only 17 % of  no n-users felt t hat t hey ha d experienced any di fficulties w ith c ultural differences, and only 4% judged these to have been 'significant' (i.e. 4-5 out of 5).  In comparison, well over half of UKTI users had experienced problems with this (23% to a significant extent).  However, it should be noted that the user data displayed in the above chart relates to difficulties with 'language or cultural differences' (as these two barriers were combined in the Internationalisation Survey). 

 

As s een below, i n most c ases w here non-user f irms hav e not ex perienced any problems with cultural differences, this is because they have not come across them, although a fifth have avoided them by virtue of having staff that are familiar with the culture in the overseas markets in which they do business. 

Non-Users (PIMS 2011) 
 
6-10 
>10 years 
Total 
Up to 5 
years old 
years old 
old  
Base 
300 
99 
100 
101 
Not come across cultural differences 
65% 
59% 
64% 
67% 
Have staff familiar with the culture 
20% 
19% 
24% 
19% 
Other reason 
5% 
5% 
6% 
4% 
Don't know 
1% 
0% 
0% 
2% 
Cultural differences were a barrier (3-5 out of 5) 
13% 
16% 
11% 
13% 


7.2.12 Bias (Bias Barrier) The c hart below s hows t he ex tent t o w hich t he non-user b usinesses i nterviewed have experienced barriers relating to 'a preference on the part of overseas customers for doing bus iness with firms from t heir own c ountry'.  C omparative dat a has al so been provided for users of UKTI support. 

 
 
Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 3%), Up to 5 years ago (99, 6%), 6-10 years old (100, 4%), Over 10 years old (101, 2%)  
Users - Total (242, 8%), Up to 5 years ago (43, 7%), 6-10 years old (74, 8%), Over 10 years old (125, 9%) Only a fifth of non-users (21%) have experienced any problems with overseas firms preferring to do business with companies from their own country.  This issue of bias towards dom estic firms i s a m uch m ore s ignificant problem for U KTI u sers, with almost two-thirds (64%) reporting some difficulties in this respect. 

## 8. Ukti Support: Awareness & Alternatives 8.1 Awareness Of Ukti

The chart below shows the proportion of non-user businesses that were aware that UK Trade & Investment provide assistance to help UK firms do business overseas. Base: All respondents (Base, Don't know/Refused) Non-Users - Total (300, 1%), Up to 5 years old (99, 1%), 6-10 years old (100, 2%), Over 10 years old (101, 0%) Only just over a third of non-users firms were aware that UKTI provide assistance to help UK firms do bus iness overseas.  Awareness levels are broadly similar across the different firm age groups. However, t he t able bel ow de monstrates t hat awareness of U KTI i ncreases significantly amongst supported non-users, and this does raises the question of why half of those firms t hat are accessing external export-related support are aware of UKTI but choosing not to use their services.   
 

| Total      | Up to 5 years    | 6-10 years    | Over 10 years    |
|------------|------------------|---------------|------------------|
|            |                  |               |                  |
| Supp-      | Unsupp           | Supp-         | Unsupp           |
| orted      | -orted           | orted         | -orted           |
| Base       |                  |               |                  |
|            |                  |               |                  |
| 142        |                  |               |                  |
|            |                  |               |                  |
| 460        |                  |               |                  |
|            |                  |               |                  |
| 39         |                  |               |                  |
|            |                  |               |                  |
| 156        |                  |               |                  |
|            |                  |               |                  |
| 39         |                  |               |                  |
|            |                  |               |                  |
| 161        |                  |               |                  |
|            |                  |               |                  |
| 64         |                  |               |                  |
|            |                  |               |                  |
| 143        |                  |               |                  |
|            |                  |               |                  |
| Yes        |                  |               |                  |
| 52%        |                  |               |                  |
| 32%        | 51%              | 28%           | 44%              |
| No         |                  |               |                  |
| 47%        |                  |               |                  |
| 68%        | 46%              | 72%           | 54%              |
| Don't know |                  |               |                  |
| 1%         |                  |               |                  |
| 0%         | 3%               | 1%            | 3%               |

## 8.2 Awareness & Interest In Ukti Services

8.2.1 The Overseas Market Introduction Service (OMIS) Businesses were read out the following description of OMIS and asked if they had heard of this service and whether they would be interested in using it.  
 
"The Overseas Market Introduction Service, or OMIS, is a charged service delivered by UK embassies and consulates overseas. It can include advice about an overseas market or the identification of possible customers or business partners".   

Non-Users (PIMS 2011) 
 
6-10 
Over 10 
Total 
Up to 5 
years old 
years old 
years old  
Base 
300 
99 
100 
101 
Have you heard of this service before? 
Yes 
18% 
14% 
15% 
21% 
No 
80% 
85% 
84% 
76% 
Don't know 
2% 
1% 
1% 
3% 
Would you be interested in using this service? 
Yes 
20% 
32% 
27% 
14% 
Maybe 
13% 
8% 
11% 
16% 
No 
66% 
60% 
61% 
70% 
Don't know 
0%  
0% 
1% 
0% 

 Approaching a fifth of non-user firms had heard of the OMIS service.  Based on the brief description that respondents were given about OMIS, a fifth felt that they would be interested in using it (with a further 13% indicating they may be interested). Interestingly, aw areness s eems t o b e s lightly hi gher am ongst ol der firms, b ut i t i s younger firms that find the service most appealing. 

 
The table below provides further analysis of awareness of, and interest in, the OMIS service amongst non -user firms by  t heir g rowth obj ectives a nd i nnovation l evels. Please note that to enable more robust analysis at this level, the data is based on both the 2010 and 2011 Non-User surveys.  
 

| Growth objectives                              | Innovation    |
|------------------------------------------------|---------------|
| Innovative                                     |               |
|                                                |               |
| Substantial                                    | Moderate      |
| high                                           |               |
| growth                                         | growth        |
| Innovative                                     |               |
| Non-                                           |               |
| innovative                                     |               |
| growth                                         |               |
| Base                                           |               |
| 163                                            | 316           |
| Have you heard of this service before?         |               |
|                                                |               |
| Yes                                            |               |
| 17%                                            | 15%           |
| No                                             |               |
| 83%                                            | 83%           |
| Don't know                                     |               |
| 0%                                             | 2%            |
| Would you be interested in using this service? |               |
|                                                |               |
| Yes                                            |               |
| 27%                                            | 22%           |
| Maybe                                          |               |
| 57%                                            | 63%           |
| No                                             |               |
| 16%                                            | 14%           |
| Don't know                                     |               |
| 0%                                             | 1%            |

 As seen above, awareness of the OMIS service was higher amongst firms that do not plan to grow over the next 5 years.  However, those firms that are aiming for growth (particularly substantial growth) were significantly more interested in the service once they had  h eard a s ummary of  w hat i t i nvolved, w ith onl y a m inority of  this g roup indicating that they definitely would not want to use it.  This clearly demonstrates that there are a significant number of dynamic firms t hat would potentially benef it from OMIS but  have no t c onsidered us ing i t s imply bec ause t hey ar e unaw are o f i ts existence. There is a slightly different picture when it comes to innovation, with innovative firms demonstrating b oth hi gher aw areness of O MIS an d a s lightly g reater deg ree of interest in using the service.  Reflecting the lower awareness level amongst growing firms as a whole, innovative high growth firms were less likely to have heard of OMIS than o ther i nnovative f irms, b ut t his g roup di d f ind t he i dea o f OMIS par ticularly appealing. 

8.2.2 International Trade Advisors Businesses w ere read out t he f ollowing description o f UKTI's International T rade Advisors and asked if they had heard of this service before and whether they would be interested in using it.  
 
"UK Trade & Investment employ a number of International Trade Advisors who are based in the UK and provide one-to-one advice to help firms develop their overseas business.  They can also provide referrals to other support or specialist advice".   
 

Non-Users (PIMS 2011) 
 
6-10 
Over 10 
Total 
Up to 5 
years old 
years old 
years old  
Base 
300 
99 
100 
101 
Have you heard of this service before? 
Yes 
22% 
17% 
20% 
25% 
No 
77% 
81% 
80% 
74% 
Don't know 
1% 
2% 
0% 
1% 
Would you be interested in using this service? 
Yes 
36% 
45% 
38% 
33% 
Maybe 
13% 
9% 
10% 
15% 
No 
50% 
44% 
51% 
50% 
Don't know 
2% 
1% 
1% 
2% 

 Awareness of the ITAs is marginally higher than that seen for OMIS (22% vs. 18%).  
This service also seems to be more appealing to non-users than OMIS, with over a third of firms expressing an i nterest in using the ITAs (and a further 13% indicating that they may be interested). As with O MIS, awareness of ITAs is slightly higher amongst older f irms, but more recently established firms are most interested in using this type of support. 

The t able b elow pr ovides further an alysis of aw areness of, a nd i nterest i n, t he services pr ovided by  I TAs a mongst no n-user f irms by t heir g rowth o bjectives a nd innovation levels.  P lease note that to enable more robust analysis at this level, the data is based on both the 2010 and 2011 Non-User surveys. 

| Growth objectives                              | Innovation    |
|------------------------------------------------|---------------|
| Innovative                                     |               |
|                                                |               |
| Substantial                                    | Moderate      |
| high                                           |               |
| growth                                         | growth        |
| Innovative                                     |               |
| Non-                                           |               |
| innovative                                     |               |
| growth                                         |               |
| Base                                           |               |
| 163                                            | 316           |
| Have you heard of this service before?         |               |
|                                                |               |
| Yes                                            |               |
| 22%                                            | 20%           |
| No                                             |               |
| 77%                                            | 79%           |
| Don't know                                     |               |
| 1%                                             | 1%            |
| Would you be interested in using this service? |               |
|                                                |               |
| Yes                                            |               |
| 42%                                            | 37%           |
| Maybe                                          |               |
| 42%                                            | 48%           |
| No                                             |               |
| 15%                                            | 15%           |
| Don't know                                     |               |
| 1%                                             | 1%            |

 As was the case with OMIS, awareness of the ITAs was actually lower amongst firms that were planning to grow over the next 5 years, but this group were considerably more i nterested i n using t he service.  This again s uggests t hat usage o f the I TAs could be  i ncreased ( particularly am ongst more a mbitious firms t hat ar e pl anning growth) if the service is more widely publicised. Both awareness and interest in ITAs appears to be slightly higher amongst innovative firms, although these differences are not statistically significant.  However, innovative high growth firms are significantly more likely to express clear interest in the service than non-innovative firms. 

 

 
8.2.3 UK Events Businesses were read out the following description of UKTI export events and were asked whether they had heard of t hese events before and whether t hey would be interested in attending.  
 
"UK Trade & Investment put on a variety of events and seminars in the UK that focus on export opportunities and other aspects of doing business overseas" 
 

Non-Users (PIMS 2011) 
 
6-10 
Over 10 
Total 
Up to 5 
years old 
years old 
years old  
Base 
300 
99 
100 
101 
Have you heard of these events before? 
Yes 
44% 
34% 
40% 
48% 
No 
56% 
65% 
60% 
52% 
Don't know 
0%  
1% 
0% 
0% 
Would you be interested in attending this type of event? 
Yes 
29% 
38% 
33% 
25% 
Maybe 
9% 
10% 
12% 
7% 
No 
61% 
51% 
54% 
67% 
Don't know 
1% 
1% 
1% 
1% 

 Awareness of this type of UKTI export-focussed events is higher than was seen for either OMIS or the ITAs, at 44%.  H owever, given that only 37% of firms knew that UKTI provide assistance to help UK firms do business overseas, it seems that this figure refers to awareness of export-related events in general, rather than UKTI ones specifically. There is also considerable interest in this type of event, with over a quarter indicating that they would be interested in attending (and a further 9% stating that they may be interested). 

 

The table below provides further analysis of awareness of, and interest in, UK export events amongst no n-user firms by  t heir g rowth obj ectives and  i nnovation l evels.  
Please note that to enable more robust analysis at this level, the data is based on both the 2010 and 2011 Non-User surveys.  
 

| Growth objectives                              | Innovation    |
|------------------------------------------------|---------------|
| Innovative                                     |               |
|                                                |               |
| Substantial                                    | Moderate      |
| high                                           |               |
| growth                                         | growth        |
| Innovative                                     |               |
| Non-                                           |               |
| innovative                                     |               |
| growth                                         |               |
| Base                                           |               |
| 163                                            | 316           |
| Have you heard of this service before?         |               |
|                                                |               |
| Yes                                            |               |
| 43%                                            | 43%           |
| No                                             |               |
| 57%                                            | 57%           |
| Don't know                                     |               |
| 0%                                             | 0%            |
| Would you be interested in using this service? |               |
|                                                |               |
| Yes                                            |               |
| 42%                                            | 33%           |
| Maybe                                          |               |
| 47%                                            | 55%           |
| No                                             |               |
| 11%                                            | 12%           |
| Don't know                                     |               |
| 0%                                             | 1%            |

 There are no significant differences in awareness of this type of event by the level of firms' growth ambitions, although innovative firms are more likely to have heard of them than their non-innovative counterparts. In terms of the appeal of these events, firms that are expecting to grow (particularly those planning for substantial growth) and innovative firms both exhibit significantly higher levels of interest in attending. 

## 8.3 Use Of Non-Ukti Support

The chart below shows the proportion of non-user firms that have received any (non-
UKTI) information, advice or support in relation to doing business overseas in the last two years. Base: All respondents (Base, Don't know/Refused) Non-Users - Total (602, 1%), Up to 5 years old (195, 0%), 6-10 years old (200, 1%), Over 10 years old (207, 0%) Just o ver a quarter of n on-users ha d received ex port s upport from a non-UKTI 
source in the previous two years, and are therefore classed as 'supported' non-users. Older firms established for more than 10 years were most likely to have accessed external support. As detailed below, the most widely used sources of support were HM Revenue and Customs and the Chamber of Commerce, followed by banks and trade associations.  
  

Non-Users 
| Up to 5                        | 6-10 years    | Over 10    |
|--------------------------------|---------------|------------|
| Total                          |               |            |
|                                |               |            |
| years old                      | old           | years old  |
| Base: All non-users            |               |            |
|                                |               |            |
| 602                            |               |            |
|                                |               |            |
| 195                            |               |            |
|                                |               |            |
| 200                            |               |            |
|                                |               |            |
| 207                            |               |            |
|                                |               |            |
| HM Revenue and customs         |               |            |
| 9%                             | 9%            | 8%         |
| Chamber of Commerce            |               |            |
| 9%                             | 4%            | 5%         |
| Bank                           |               |            |
| 8%                             | 6%            | 3%         |
| Trade Association              |               |            |
| 6%                             | 2%            | 5%         |
| Consultant                     |               |            |
| 4%                             | 5%            | 5%         |
| Regional Development Agency    |               |            |
| 4%                             | 4%            | 4%         |
| Market research agency         |               |            |
| 3%                             | 2%            | 2%         |
| Other                          |               |            |
| 4%                             | 4%            | 1%         |
| No support received            |               |            |
|                                |               |            |
| 73%                            |               |            |
|                                |               |            |
| 80%                            |               |            |
|                                |               |            |
| 79%                            |               |            |
|                                |               |            |
| 69%                            |               |            |
|                                |               |            |
| Don't know if received support |               |            |
| 1%                             |               |            |
|                                |               |            |
| 0%                             |               |            |
|                                |               |            |
| 1%                             |               |            |
|                                |               |            |
| 0%                             |               |            |
|                                |               |            |
|                                |               |            |
|                                |               |            |

## 8.4 Supported Non-Users

 8.4.1 Focus Of Support The most widespread type of support accessed by non-users related to information on how to do business in an overseas market, with just over half of all supported nonusers indicating that they had obtained this in the previous 2 years.  Over a quarter of firms had also received specific information about business opportunities overseas, with a s lightly lower proportion accessing information about entering a new market and help identifying overseas contacts.   

Supported Non-Users  
 
Total 
Up to 5 
6-10 years 
Over 10 
years old 
old 
years old 
Base: Supported non-users 
142 
39 
39 
64 
Info on how to do business in an overseas market 
53% 
54% 
59% 
52% 
Info about business opportunities overseas 
28% 
31% 
33% 
27% 
Info about entering a new market 
23% 
28% 
31% 
20% 
Help identifying overseas contacts 
21% 
23% 
33% 
17% 
Certificates of Origin 
18% 
10% 
5% 
23% 
Help accessing finance or funding 
17% 
26% 
15% 
16% 
Help with developing overseas business strategy  
16% 
21% 
28% 
13% 
Help with doing market research overseas  
13% 
21% 
23% 
9% 
Political support 
3% 
5% 
5% 
2% 
Other 
7% 
10% 
10% 
6% 
Don't know 
6% 
10% 
5% 
5% 

 8.4.2 Paid-For Support Supported non-users were also asked whether they had paid for any of the support they had received, and as detailed below, just over a quarter had done s o.  Young firms ar e c onsiderably l ess l ikely t o h ave p aid for s upport, per haps r eflecting t he lower financial resources of many newly established firms. 

 
Supported Non-Users 
 
Total 
Up to 5 
6-10 years 
Over 10 
years old 
old 
years old 
Base: Supported non-users 
142 
39 
39 
64 
Yes 
27% 
13% 
26% 
30% 
No 
72% 
87% 
74% 
69% 
Don't know 
1% 
0% 
0% 
2% 

8.4.3 Time Spent Supported n on-users were also asked t o es timate h ow m uch t ime t he s upport provider had spent on assisting them. 

Supported Non-Users  

Up to 5 years 
Total 
old 
6-10 years old 
Over 10 
Years old 
Base: Supported non-users 
142 
39 
39 
64 
More than a week 
8% 
5% 
13% 
8% 
3-5 day's work 
11% 
10% 
18% 
9% 
1-2 day's work 
14% 
15% 
10% 
14% 
Less than a day 
31% 
33% 
33% 
29% 
Less than an hour  
28% 
23% 
26% 
30% 
Don't know 
8% 
13% 
0% 
9% 

 Most firms receiving external export support indicated t hat this had been relatively light in terms of time, with only 8% feeling that they had received more than a week's worth of  as sistance a nd ov er a q uarter (28%) bel ieving i t was l ess t han an h our.  
However, it should be noted that this relates to firms' perceptions of the time spent by the support provider. 

## 8.5 Unsupported Non-Users

8.5.1 Perceived Benefit Of External Support All non-user businesses that had not received any support were asked whether they thought t hey w ould hav e ben efited from s uch s upport t o help overcome a ny difficulties they had encountered when developing the export side of their business.  
As seen below, two-fifths believed that they *would* have benefited from this type of assistance (with a further 7% indicating that they might have done so). 

 

Unsupported Non-Users 
 
Total 
Up to 5 
6-10 years 
Over 10 
years old 
old 
years old 
Base: Unsupported non-users 
460 
156 
161 
143 
Yes 
40% 
45% 
37% 
41% 
Maybe 
7% 
5% 
6% 
8% 
No 
52% 
48% 
56% 
52% 
Don't know 
1% 
2% 
2% 
0% 

 
Those f irms th at fe lt they would hav e b enefited from s ome t ype of ex port r elated assistance were asked t o specify what particular t ypes of advice or support would have helped.  Please not e that c omparable d ata i s n ot available from the 2 010 survey, so the table below is based solely on t he 2011 survey.  A s seen below, the most widely required types of assistance relate to help with export regulations, rules and taxes (29%) and general advice on how to export or enter new markets.   
 

Unsupported Non-Users  
Up to 5 
6-10 years 
Over 10 
 
Total 
years old 
old 
years old 
Base: Unsupported non-users 
239 
80 
83 
76 
Info/advice on export regulations/ rules/taxes  
29% 
24% 
19% 
34% 
General info/advice on how to export/enter new markets  
18% 
23% 
20% 
16% 
Finance/grants/subsidies  
8% 
5% 
6% 
11% 
Info about specific countries/market 
intelligence  
8% 
11% 
7% 
7% 
Help with overseas marketing strategy  
7% 
10% 
5% 
7% 
Help with accessing business contacts  
5% 
11% 
5% 
4% 
Info/advice about securing payment/ enforcing contracts  
5% 
4% 
6% 
5% 
Other 
4% 
5% 
5% 
4% 
Don't know 
3% 
1% 
5% 
3% 
Would not have benefited from support 
47% 
48% 
47% 
46% 
Don't know if would have benefited from support 
1% 
1% 
4% 
0% 

8.5.2 Awareness Of Potential Support Providers Those u nsupported n on-user f irms indicating t hat ex port s upport could hav e been beneficial to them were asked whether they were aware of anyone who could provide this type of support, with the results detailed below. 

 

Unsupported Non-Users (2010/2011 Combined) 

Unsupported Non-Users  

Total 
Up to 5 
6-10 years 
Over 10 
years old 
old 
years old 
Base: All unsupported non-users indicating would benefit from support 
215 
78 
68 
69 
Yes, aware of support providers 
35% 
32% 
34% 
36% 
 - Business Link 
8% 
6% 
6% 
9% 
 - Friend, colleagues, business associates 
7% 
4% 
3% 
10% 
 - Chamber of Commerce 
7% 
3% 
10% 
7% 
 - Trade Association  
5% 
4% 
3% 
6% 
- HM Revenue and Customs  
4% 
8% 
7% 
1% 
 - Bank 
4% 
3% 
3% 
4% 
- UKTI 
3% 
5% 
1% 
3% 
- Dept for Business, Innovation & Skills 
2% 
0% 
3% 
1% 
- Regional Development Agency 
1% 
0% 
1% 
1% 
- Embassies 
1% 
0% 
0% 
1% 
- Consultant 
*% 
3% 
0% 
0% 
- Other  
7% 
4% 
4% 
9% 
No, not aware of support providers 
65% 
68% 
66% 
64% 

 It ap pears t hat i n most c ases t he r eason why those firms that fe el export s upport would be beneficial have not  ac tually us ed i t i s b ecause t hey are u naware o f any providers, with 65% of firms indicating that this is the case. Amongst those firms that were aware of potential support providers, the most widely mentioned suppliers were B usiness Li nk, the C hamber o f C ommerce a nd more informal assistance from friends or business associates.  Only 3% of firms suggested UKTI as a s ource of export support (with a f urther 2% mentioning BIS), and t his is consistent with the low awareness levels seen earlier (37% of all non-users aware of UKTI). 

 

8.5.3 Reasons For Not Needing Export Support Unsupported non-users w ho felt th at they w ould not  hav e be nefitted from any external export-related advice or support were asked why this was.  Please note that comparable data is not available from t he 2010 survey, hence base sizes are low when looking at individual age groups. 

Unsupported Non-Users  

Total 
Up to 5 
6-10 years 
Over 10 
years old 
old 
years old 
Base: All unsupported non-users indicating would not benefit from support 
112 
38 
39 
35 
Easy/straightforward/don't need help 
35% 
42% 
31% 
34% 
Already have experience/expertise within 
the company 
31% 
29% 
38% 
29% 
Manage fine as we are/do it ourselves  
22% 
21% 
15% 
26% 
Customers contact us/we respond to orders/enquiries 
22% 
21% 
21% 
23% 
Have our own/existing contacts  
16% 
11% 
10% 
20% 
No one could provide relevant help/information 
7% 
5% 
5% 
9% 
Have a niche market/product  
6% 
5% 
15% 
3% 
Other 
7% 
5% 
5% 
9% 
Don't know 
3% 
3% 
3% 
3% 

 As detailed above, the main reasons for not requiring support were that firms felt that doing business overseas was easy or straightforward and that they already had the required expertise within their company, with each of these mentioned by around a third of firms. 

## 9. Quality Of Support 9.1 Quality Rating - Measure A09

Supported non-user businesses were asked to rate a number of aspects of the (non-
UKTI) export support they received, as follows: 

- The quality & relevance of the information they provided 
- The quality and relevance of any contacts it allowed you to make - Their attitude & professionalism - Their objectivity and acting in your best interests 
 These ratings have been used to create a m ean quality rating for the summarised through a calculation of the average proportion of firms providing a rating of '4' or '5' 
on the 5-point scale across these aspects of service.  This analysis forms one of the key survey measures, namely 'Measure A09 - Quality rating'. 

Supported Non-Users 
 
Total 
Over 10 
1-5 Years Old 
6-10 Years 
Old 
Years Old 
Base: Supported non-users 
142 
39 
39 
64 
Average proportion providing a rating of '4' or '5' 
52% 
53% 
51% 
52% 
95% confidence interval 
± 8% 
± 16% 
± 16% 
± 12% 

## A09 - Quality Rating

The average proportion of firms scoring '4' or '5' on a 5-point scale for… 

- 
The quality & relevance of the information they provided (56%) 
- 
The quality and relevance of any contacts it allowed you to make (25%) 
- 
Their attitude & professionalism (67%) 
- 
Their objectivity and acting in your best interests (60%) 
 The mean quality rating for non-UKTI support is 52%, and there are no statistically significant differences by age of firm in this respect. The panel below provides further details of how Measure A09 has been calculated for this survey, and d emonstrates that the key strength of non-UKTI support is the attitude and professionalism of those delivering it, but the primary weakness is the contacts provided (with only 25% giving a score of 4-5 out of 5 for this element). Throughout this section, comparative quality data has also been provided for users of UKTI support (from t he m ain PIMS survey).  P lease note t hat for UKTI users, the individual el ements o f t he q uality r ating di ffer dep ending on t he s pecific t ype o f support received.  H owever, unless otherwise stated, the results relate to the mean quality rating across all UKTI services. The following chart provides a comparison with the quality ratings for UKTI support.  . 



Base: All supported firms (Base) Non-Users - Total (142), Up to 5 years old (39), 6-10 years old (39), Over 10 years old (64),  
Users - Total (3945), Up to 5 years old (952), 6-10 years old (664), Over 10 years old (2313) Overall, UKTI s upport i s per ceived to b e of s ignificantly hi gher q uality t han t hat provided by  al ternative pr oviders, w ith m ean q uality r atings of  78%  a nd 52% respectively.  I n each case, t here is little difference in t he perceived quality of  t he support by age of firm. 

## 9.2 Individual Quality Ratings

9.2.1 Quality & Relevance Of Information The chart below shows the ratings given by supported non-user firms for the quality and relevance of the information provided (by non-UKTI sources). Base: All supported non-users (Base, Don't know/Refused) Non-Users - Total (142 ,3%), Up to 5 years old (39, 3%), 6-10 years old (39, 5%), Over 10 years old (64, 3%) Although many supported non-users (56%) gave high ratings (i.e. 4-5 out of 5) for the quality and r elevance o f the i nformation t hey w ere provided with, a significant minority felt that the quality and relevance of information was poor, with 13% scoring just 1-2 out of 5. 

## 9.2.2 Quality & Relevance Of Contacts

The chart below shows the ratings given by supported non-user firms for the quality and relevance of any contacts the (non-UKTI) support allowed them to make. 

 
 
Base: All supported non-users (Base, Don't know/Refused) Non-Users - Total (142 ,5%), Up to 5 years old (39, 3%), 6-10 years old (39, 5%), Over 10 years old (64, 5%) Only a q uarter of supported non-users gave a high rating of 4-5 for the quality and relevance of the contacts they received from the external provider(s).  Whilst this is partly because a fifth indicated that this was not relevant, presumably because the export support had not involved the provision of contacts, it is still the case that 18% gave a poor score of just 1-2 out of 5. 

## 9.2.3 Attitude & Professionalism

The chart below shows the ratings given by supported non-user firms for the attitude and professionalism of the (non-UKTI) support providers used. Base: All supported non-users (Base, Don't know/Refused) Non-Users - Total (142 ,5%), Up to 5 years old (39, 3%), 6-10 years old (39, 5%), Over 10 years old (64, 5%) 
The at titude a nd professionalism o f the s taff i s a major s trength of t hese external support providers, with two-thirds of supported non-users (67%) scoring 4-5 out of 5 
for this element and only 7% giving 'poor' ratings (i.e. 1-2). 

## 9.2.4 Objectivity & Acting In Best Interests

The c hart below s hows t he r atings g iven by  s upported no n-user f irms for t he objectivity of the (non-UKTI) support providers used. Base: All supported non-users (Base, Don't know/Refused) Non-Users - Total (142 ,4%), Up to 5 years old (39, 5%), 6-10 years old (39, 5%), Over 10 years old (64, 3%) The m ajority of  no n-users were al so pos itive abo ut t he i mpartiality of  t he s upport provider they used, with well over half (60%) scoring 4-5 out of 5 for this element. 

## 9.2.5 Comparison With Ukti Users

For UKTI users the individual elements of the quality rating differ depending on the specific service.  F or comparative purposes, the table below provides user data for relevant UKTI services, as follows: 

- 
Passport to Export, Gateway to Global Growth (GGG) & English Regions 
Trade Advisors (ERTA) - These ar e t he adv isory s ervices del ivered by  
International Trade Advisors in the English regions 
- 
Overseas Market Introduction Service (OMIS) - This is the charged service 
delivered by the overseas posts  

UKTI Users (PIMS 20-23) 
Supported Non-Users 
(PIMS 2010/11) 
Passport, GGG & ERTA 
OMIS 
Proportion scoring 4-5 out of 5 
6-10 
>10 
6-10 
>10 
6-10 
>10 
Total 
> 5 
yrs  
yrs 
yrs 
Total 
> 5 
yrs  
yrs 
yrs 
Total 
> 5 
yrs  
yrs 
yrs 
Base 
142 
39 
39 
64 
1062 
297 
213 
552 
426 
80 
51 
291 
Quality Rating (A09) 
52% 
53% 
51% 
52% 
88% 
89% 
90% 
87% 
73% 
78% 
76% 
72% 
- Quality & relevance 
of info and advice 
56% 
62% 
54% 
56% 
79% 
77% 
83% 
79% 
70% 
76% 
75% 
68% 
- Quality & relevance 
of contacts 
25% 
33% 
28% 
23% 
- 
- 
- 
- 
64% 
72% 
70% 
61% 
- Attitude & 
professionalism 
67% 
72% 
74% 
64% 
94% 
97% 
91% 
93% 
87% 
91% 
80% 
88% 
- Objectivity & acting 
in best interests 
60% 
46% 
46% 
66% 
- 
- 
- 
- 
78% 
75% 
75% 
79% 

 As s een a bove, t he v arious U KTI s ervices c onsistently out perform the al ternative support sources for each of the elements tested, with those UKTI services delivered by the regional network of International Trade Advisors rated particularly highly. The difference in the quality of contact facilitation is very apparent, with two-thirds of OMIS users giving a s core of 4-5 out of 5 for this aspect, compared to just 25% for alternative providers. 

## 10. Additionality

 Supported n on-users w ere asked the extent t o w hich t hey would hav e ac hieved similar results anyway had they not received the (non-UKTI) support.  Comparative data has also been provided for users of UKTI support. Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base, None of these)  
Non-Users - Total (127, 0%), Up to 5 years old (36, 3%), 6-10 years old (36, 0%), Over 10 years old (55, 0%),  
Users - Total (3945, 2%), Up to 5 years old (952, 3%), 6-10 years old (664, 1%), Over 10 years old (2313, 2%) There is clear evidence to suggest that support provided by UK Trade & Investment has a higher level of additionality than that provided by alternative sources.   
 
Almost hal f of al l supported non -users j udged t he as sistance t hey r eceived t o be  
'non-additional' (i.e. they feel that they would have achieved similar results anyway), whereas this is only the case for a fifth of UKTI users.  Furthermore, the alternative non-UKTI export support is only classified as 'fully additional' in 10% of cases (i.e. 

they pr obably or  de finitely w ould not have ac hieved s imilar r esults w ithout the support), compared to 26% for UKTI services. These di fferences i n the a dditionality of  U KTI and no n-UKTI s upport ar e c learly evident across all ages of firm. 

## 11. Impacts & Outcomes

The following section reports on the impacts and outcomes of the (non-UKTI) support received by non-user firms.  P lease note that only impacts and outcomes judged to be additional are referred to (i.e. non-additional interventions do not score against the key m easures).  N on-additional i nterventions ar e de fined as  t hose w here t he firm indicated that they 'would have achieved similar results anyway' without the support. It should also be noted that those supported non-users that received very 'light touch' 
support (i.e. only received Certificates of Origin or 'other' support lasting for less than one h our) w ere not  asked t he full r ange o f i mpact q uestions and ar e t herefore excluded from this analysis.  T he rationale for this was partly to reduce respondent burden by not asking a s eries of detailed questions about very minimal support, but also to provide a more valid comparison with the support provided by UKTI. 

11.1 Increased Skills - Measure A81 

## 11.1.1 Summary

The t able bel ow s hows t he s ummarised pr oportions o f s upported non-user businesses classified as benefiting from the (non-UKTI) support received in terms of increasing their skills.  This analysis forms one of the key survey measures, namely 'Measure A81 - Increased skills'. 

Supported Non-Users 
 
Total 
1-5 Years 
6-10 Years 
Over 10 
Old 
Old 
Years Old 
Base 
127 
36 
36 
55 
14% 
25% 
14% 
13% 
Proportion displaying at least one 'increased skill', net of nonadditionality 
95% confidence interval 
± 6% 
± 14% 
± 11% 
± 9% 
 

## A81 - Increased Skills

Firms are classified as indicating increased skills if they feel that they have 'to a significant extent' (i.e. scored '4' or '5' for)… 
- 
Improved their knowledge of the competitive environment in an overseas 
market (C7i) - 10% 
- 
Or, improved their overseas marketing strategy (C7o) - 8% 
 
In each case, net of non-additionality, with non-additionality in this context taken to be f irms indicating t hat t hey f eel t hat they ' could have got s imilar s upport 
Overall, just 14% of supported non-users are judged to have significantly increased their skills as a result of the assistance they received.  Whilst there is some indication that this proportion increases amongst younger firms, this apparent difference is not statistically significant. The panel below provides further details of how A81 has been calculated. 

elsewhere' (C9). The chart below includes comparative data for users of UKTI support (from PIMS) 
scoring against Measure A817
. 

 
 
Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base)  
Non-Users - Total (127), Up to 5 years old (36), 6-10 years old (36), Over 10 years old (55),  
Users - Total (3945), Up to 5 years old (952), 6-10 years old (664), Over 10 years old (2313) UKTI users are more than three times as likely to increase their skills as a result of the support than is the case for firms accessing non-UKTI export support.  For both users and non-users, skills benefits are most widely experienced by younger firms. 

## 11.1.2 Knowledge Of Competitive Environment

The c hart below s hows t he ex tent t o w hich, as  a  di rect r esult of t he (non-UKTI) 
support t hey r eceived, bus inesses h ave either benefited or  anticipate ben efiting through i mproving t heir k nowledge of  t he c ompetitive env ironment i n an overseas market.  Comparative data has also been provided for users of UKTI support (from PIMS). 

Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base, Don't know)  
Non-Users - Total (127, 3%), Up to 5 years old (36, 0%), 6-10 years old (36, 0%), Over 10 years old (55, 4%)  
Users - Total (3945, 0%), Up to 5 years old (952, 1%), 6-10 years old (664, 1%), Over 10 years old (2313, 0%) Only 1 i n 1 0 s upported n on-users ex perience s ignificant b enefits i n terms o f improving t heir k nowledge o f t he c ompetitive env ironment ov erseas, c ompared to over a third of UKTI users. 

## 11.1.3 Improved Overseas Marketing Strategy

The c hart below s hows t he ex tent t o w hich, as  a  di rect r esult of t he ( non-UKTI) support they received, businesses have either benefited or anticipate benefiting from making improvements to their overseas marketing strategy.  C omparative data has also been provided for users of UKTI support (from PIMS). 



Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base, Don't know)  
Non-Users - Total (127, 2%), Up to 5 years old (36, 3%), 6-10 years old (36, 0%), Over 10 years old (55, 2%) Users - Total (3945, 0%), Up to 5 years old (952, 1%), 6-10 years old (664, 0%), Over 10 years old (2313, 0%) There i s al so c lear ev idence t hat UKTI support i s more l ikely t o r esult i n improvements to firms' overseas marketing strategies than support provided by non-
UKTI sources. 

## 11.2 Changed Behaviour - Measure A83 11.2.1 Summary

The t able bel ow s hows t he s ummarised pr oportions o f s upported non-user businesses classified as benefiting from the (non-UKTI) support received in terms of changing t heir be haviour.  This analysis f orms o ne o f t he k ey s urvey m easures, namely 'Measure A83 - Changed behaviour'. 

Supported Non-Users 
 
Total 
1-5 Years 
6-10 Years 
Over 10 
Old 
Old 
Years Old 
Base 
127 
36 
36 
55 
26% 
28% 
19% 
27% 
Proportion displaying at least one 'change in behaviour', net of nonadditionality 95% confidence interval 
± 8% 
± 14% 
± 13% 
± 12% 

## A83 - Changed Behaviour

Firms are classified as having changed their behaviour if they feel that they have 'to a significant extent' (i.e. scored '4' or '5' for)… 
 
- 
Made i mprovements t o products, s ervices o r m anagement p ractices 
(C7l) - 10% 
- 
Or, made improvements to your new product or service development 
strategy (C7t) - 6% 
- 
Or, improved t he way you do bus iness in overseas m arkets (C7n) - 15% 
- 
Or, gained the confidence to either explore a new market or expand in an existing one (C7h) - 11% 
- 
Or, improved your overseas marketing strategy (C7o) - 8% 
 
In each case, net of non-additionality, with non-additionality in this context taken 
to be f irms indicating t hat t hey f eel t hat they ' could have got s imilar s upport elsewhere' (C9). Just over a quarter of supported non-user firms score against this measure, and the 
most widespread behavioural c hange i nvolves f irms i mproving t he w ay t hey d o business in overseas markets. The p anel bel ow pr ovides further details o f how  A 83 has  be en calculated for t his survey. 
 The chart below includes comparative data for users of UKTI support (from PIMS) 
scoring against Measure A838
. Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base)  
Non-Users - Total (127), Up to 5 years old (36), 6-10 years old (36), Over 10 years old (55),  
Users - Total (3945), Up to 5 years old (952), 6-10 years old (664), Over 10 years old (2313) Over half of UKTI users score against this measure, compared to only a q uarter of firms accessing non-UKTI export support. 

11.2.2 Improved Products, Services Or Management Practices The c hart below s hows t he ex tent t o w hich, as  a  di rect r esult of t he ( non-UKTI) support they received, businesses have either benefited or anticipate benefiting from making i mprovements t o t heir pr oducts, services or m anagement pr actices.  
Comparative data has also been provided for users of UKTI support (from PIMS)9
. 

 
 
Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support & users receiving Special Reports 
(Base, Don't know)  
Non-Users - Total (127, 0%), Up to 5 years old (36, 0%), 6-10 years old (36, 0%), Over 10 years old (55, 0%),  
Users - Total (3915, 1%), Up to 5 years old (950, 1%), 6-10 years old (660, 0%), Over 10 years old (2289, 1%) UKTI assistance is significantly more likely than the alternative support to result in improved products, services or practices, and this is true irrespective of age of firm.  
For both users and non-users, the younger the firm the more likely they are to make significant behavioural changes as a result of the support. 

11.2.3 Improved New Product Development Strategy The c hart below s hows t he ex tent t o w hich, as  a  di rect r esult of t he ( non-UKTI) support they received, businesses have either benefited or anticipate benefiting from improving their new product development strategy.  Comparative data has also been provided for users of UKTI support (from PIMS). 



Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support & users receiving Special Reports 
(Base, Don't know) Non-Users - Total (127, 2%), Up to 5 years old (36, 3%), 6-10 years old (36, 0%), Over 10 years old (55, 2%),  
Users - Total (3915, 1%), Up to 5 years old (950, 0%), 6-10 years old (660, 1%), Over 10 years old (2289, 0%) The above findings clearly demonstrate that UKTI support is significantly more likely to lead firms to improve their product/service development strategy.  
 

11.2.4 Improved Way Of Doing Business Overseas The c hart below s hows t he ex tent t o w hich, as  a  di rect r esult of t he ( non-UKTI) support they received, businesses have either benefited or anticipate benefiting from improving t he w ay t hey do business i n overseas markets.  C omparative da ta has  
also been provided for users of UKTI support (from PIMS). 

 Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base, Don't know)  
Non-Users - Total (127, 0%), Up to 5 years old (36, 0%), 6-10 years old (36, 0%), Over 10 years old (55, 0%),  
Users - Total (3945, 1%), Up to 5 years old (952, 1%), 6-10 years old (664, 1%), Over 10 years old (2313, 1%) UKTI clients are al so t wice as  l ikely as  us ers o f other pr oviders t o s ignificantly improve the way they do business overseas following the support. 

## 11.2.5 Gained Confidence To Explore/Expand

The c hart below s hows t he ex tent t o w hich, as  a  di rect r esult of t he ( non-UKTI) support they received, businesses have either benefited or anticipate benefiting from gaining the confidence to either explore new markets or expand in an ex isting one. Comparative data has also been provided for users of UKTI support (from PIMS). Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support  & users attending Posts Events Seminars & Sector Events Abroad Seminars (Base, Don't know) Non-Users - Total (127, 0%), Up to 5 years old (36, 3%), 6-10 years old (36, 0%), Over 10 years old (55, 0%),  
Users - Total (3921, 1%), Up to 5 years old (947, 1%), 6-10 years old (660, 1%), Over 10 years old (2300, 0%) As detailed above, only around 1 in 10 users of non-UKTI export support feel that this has s ignificantly ben efited t hem i n t erms of giving t hem t he c onfidence t o expand their ov erseas o perations.  I n c ontrast, two-fifths o f U KTI us ers i ndicated t hat this was a significant benefit of the support. 

## 11.3 Increased Innovation - Measure A04 11.3.1 Summary

The t able bel ow s hows t he s ummarised pr oportions o f s upported non-user businesses classified as benefiting from the (non-UKTI) support received in terms of increased innovation.  T his analysis forms one of the key survey measures, namely 'Measure A04 - Increased Innovation'. 

 
Supported Non-Users 
 
Total 
1-5 Years 
6-10 Years 
Over 10 
Old 
Old 
Years Old 
Base 
127 
36 
36 
55 
13% 
19% 
14% 
11% 
Proportion displaying at least one 'increase in innovation', net of nonadditionality 95% confidence interval 
± 6% 
± 13% 
± 11% 
± 8% 

## A04 - Increased Innovation

 Overall, j ust 13% of  supported n on-users score ag ainst t his measure o f i ncreased innovation.  Whilst this proportion appears to increase amongst younger firms, this 
apparent difference is not statistically significant. The p anel bel ow pr ovides further details o f how  A 04 has  be en calculated for t his survey. 
Firms are classified as having increased innovation if they feel that they have 'to a significant extent' (i.e. scored '4' or '5' for)… 
 
- 
Made i mprovements t o products, s ervices o r m anagement p ractices 
(C7l) - 10% 
- 
Or, m ade i mprovements to y our new  p roduct development s trategy (C7t) - 6% 
 
In each case, net of non-additionality, with non-additionality in this context taken 
to be f irms indicating t hat t hey f eel t hat they ' could have got s imilar s upport 
elsewhere' (C9). 
 The chart below includes comparative data for users of UKTI support (from PIMS) 
scoring against Measure A04.10 Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support & users receiving Special Reports 
(Base) Non-Users - Total (127), Up to 5 years old (36), 6-10 years old (36), Over 10 years old (55),  
Users - Total (3915), Up to 5 years old (950), 6-10 years old (660), Over 10 years old (2289) UKTI s upport l eads t o i ncreased i nnovation ac tivity i n ar ound a t hird o f al l c ases, whereas only 13% of supported non-user firms score against this measure.  For both users and non-users, younger firms are more likely to benefit in this way. 

## 11.4 Barriers To Market Access Overcome - Measure A92 11.4.1 Summary

Shown i n t he t able b elow ar e t he s ummarised pr oportions o f s upported non-user businesses classified as benefiting from the (non-UKTI) support received in terms of overcoming barriers to market access.  This analysis f orms one of t he key survey measures, namely 'Measure A92 - Barriers to market access overcome'. 

Supported Non-Users 
 
Total 
1-5 Years 
6-10 Years 
 Over 10 
Old 
Old 
Years Old 
Base 
127 
36 
36 
55 
30% 
25% 
36% 
29% 
Proportion displaying at least one 'barrier overcome', net of nonadditionality 95% confidence interval 
± 8% 
± 14% 
± 16% 
± 12% 

## A92 - Barriers To Market Access Overcome

Firms are classified as indicating barriers to market access overcome if they feel that they have 'to a significant extent' (i.e. scored '4' or '5' for)… 
 
- 
Gained ac cess t o pr ospective c ustomers, business par tners or ot her people you would otherwise have been unable to meet (C7a) - 11% 
- 
Or, gained access to information that you would otherwise have been unable to come by (C7e) - 25% 
- 
Or, improved your company's profile overseas (C7c) - 12% In each case, net of non-additionality, with non-additionality in this context taken to be f irms indicating t hat t hey f eel t hat they ' could have got s imilar s upport elsewhere' (C9). Approaching a third of all supported non-users score against this measure, and the 
most w idely ex perienced b enefit r elates to ac cessing i nformation t hat they w ould otherwise have been unable to come by. The panel below provides further details of how this measure has been calculated. 
 The chart below includes comparative data for users of UKTI support (from PIMS) 
scoring against Measure A9211
. 



Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base)  
Non-Users - Total (127), Up to 5 years old (36), 6-10 years old (36), Over 10 years old (55),  
Users - Total (3945), Up to 5 years old (952), 6-10 years old (664), Over 10 years old (2313) Users o f UK TI services are t wice as  l ikely as firms a ccessing n on-UKTI ex port support to have overcome barriers to market access. 

## 11.4.2 Access To Contacts

The c hart below s hows t he ex tent t o w hich, as  a  di rect r esult of t he ( non-UKTI) 
support they received, businesses have either benefited or anticipate benefiting from gaining ac cess to pr ospective c ustomers, business par tners or o ther people t hey would ot herwise hav e be en u nable t o meet.  C omparative d ata h as also be en provided for users of UKTI support (from PIMS). 

 
 
Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base, Don't know)  
Non-Users - Total (127, 1%), Up to 5 years old (36, 0%), 6-10 years old (36, 0%), Over 10 years old (55, 2%) Users - Total (3945, 1%), Up to 5 years old (952, 1%), 6-10 years old (664, 1%), Over 10 years old (2313, 1%) Contact pr ovision appears t o be a major s trength of t he U KTI s upport, and differentiates it from the alternative sources of export assistance that are available to firms.  Overall, 44% of UKTI users have benefited significantly from gaining access to contacts, c ompared t o j ust 11 % of  supported n on-users.  This as pect o f export support i s par ticularly c ritical given t hat ' contacts b arriers' em erged as  on e o f t he major di fficulties faced by  i nternationalising f irms ( as d etailed i n S ection 7 o f t his report). 11.4.3 Access To Information The c hart below s hows t he ex tent t o w hich, as  a  di rect r esult of t he ( non-UKTI) 
support they received, businesses have either benefited or anticipate benefiting from gaining ac cess t o i nformation t hey would ot herwise hav e been unable to access. Comparative data has also been provided for users of UKTI support (from PIMS). 

 
 
Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base, Don't know)  
Non-Users - Total (127, 1%), Up to 5 years old (36, 0%), 6-10 years old (36, 0%), Over 10 years old (55, 2%) Users - Total (3945, 1%), Up to 5 years old (952, 1%), 6-10 years old (664, 0%), Over 10 years old (2313, 1%) UKTI support is also more effective at filling knowledge gaps that might be hol ding back exporting firms, with 40% of UKTI users benefiting significantly from access to information they would otherwise have been unable to come by, compared to 25% of non-users. 

## 11.4.4 Improved Profile Or Credibility

The c hart below s hows t he ex tent t o w hich, as  a  di rect r esult of t he ( non-UKTI) support they received, businesses have either benefited or anticipate benefiting from improving t heir c ompany's pr ofile overseas.  C omparative da ta has  also b een provided for users of UKTI support (from PIMS). 

 
 
Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support & users receiving Special Reports 
(Base, Don't know)  
Non-Users - Total (127, 3%), Up to 5 years old (36, 3%), 6-10 years old (36, 0%), Over 10 years old (55, 4%) Users - Total (3915, 1%), Up to 5 years old (950, 1%), 6-10 years old (660, 1%), Over 10 years old (2289, 1%) Two-fifths of UKTI users have significantly improved their profile or credibility as a result o f the s upport, which i s enc ouraging g iven t hat t his i s a  k ey m otivation for doing business overseas (53% of users highlighted this as a reason for exporting).  In contrast, just 12% o f f irms ac cessing ex port support f rom non -UKTI pr oviders experienced this benefit to a significant extent. 

## 11.5 Increased Sales 11.5.1 Summary

Shown i n t he t able b elow ar e t he s ummarised pr oportions o f s upported n on-user businesses classified as benefiting from the (non-UKTI) support received in terms of increasing sales.  T his anal ysis f orms one o f t he k ey s urvey m easures, na mely 'Increased Sales'. 

 

Supported Non-Users 
 
Total 
1-5 Years 
6-10 Years 
Over 10 
Old 
Old 
Years Old 
Base 
127 
36 
36 
55 
Proportion 'increasing sales', net of non-additionality 
13% 
14% 
8% 
15% 
95% confidence interval 
± 6% 
± 11% 
± 9% 
± 9% 

## Increased Sales

Firms are classified as indicating increased sales if they feel that they have 'to a significant extent' (i.e. scored '4' or '5' for)… 
 
- 
Increased total sales (C7q) - 13% 
 
Net o f non -additionality, with non -additionality i n t his c ontext t aken to be firms indicating that they feel that they 'could have got similar support elsewhere' (C9). Just over a tenth of supported non-users scored against this measure, and there are no consistent differences by age of firm. The panel below provides further details of how this measure has been calculated. The chart below includes comparative data for users of UKTI support (from PIMS) scoring against the Increased Sales measure. 



Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base)  
Non-Users - Total (127), Up to 5 years old (36), 6-10 years old (36), Over 10 years old (55),  
Users - Total (3945), Up to 5 years old (952), 6-10 years old (664), Over 10 years old (2313) UKTI support is significantly more likely to result in increased sales for participating businesses than is the case for support provided by alternative providers. 

## 11.5.2 Benefit - Increased Total Sales

The chart below shows a m ore detailed analysis of the extent to which businesses have either benefited or anticipate benefiting from increased total sales as a direct result o f th e ( non-UKTI) s upport t hey r eceived.  C omparative d ata h as al so be en provided for users of UKTI support (from PIMS). 



Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base, Don't know)  
Non-Users - Total (127, 0%), Up to 5 years old (36, 0%), 6-10 years old (36, 0%), Over 10 years old (55, 0%) Users - Total (3945, 3%), Up to 5 years old (952, 3%), 6-10 years old (664, 2%), Over 10 years old (2313, 3%) Only a quarter of non-user firms (26%) expect any increase in sales as a result of the support received (i.e. 2-5 out of 5), compared to over half of UKTI users. 

## 11.6.1 Summary

The t able bel ow s hows t he s ummarised pr oportions o f s upported non-user businesses t hat ar e c lassified as  b enefiting f rom t he s upport r eceived i n t erms o f improved productivity and c ompetitiveness.  T his a nalysis f orms one o f t he k ey survey measures, nam ely 
'Measure A
06 
- 
Improved pr oductivity and competitiveness'. 

Supported Non-Users 
 
Total 
1-5 Years 
6-10 Years 
>10 Years 
Old 
Old 
Old 
Base 
127 
36 
36 
55 
39% 
31% 
36% 
42% 
Proportion displaying at least one improvement in 'productivity and competitiveness', net of nonadditionality 95% confidence interval 
± 8% 
± 15% 
± 16% 
± 13% 

## A06 - Improved Productivity & Competitiveness

Firms are classified as experiencing improved productivity and competitiveness if they score against… 
 
- 
Measure A81 Increased Skills - 14% 

- 
Or, Measure A83 Changed Behaviour - 26% 
- 
Or, Measure A92 Barriers to Market Access Overcome - 30% 
- 
Or, Increased Sales - 13% 
 
In each case, net of non-additionality, with non-additionality in this context taken to be f irms indicating t hat t hey f eel t hat they ' could have got s imilar s upport elsewhere' (C9). Around two-fifths of supported non-user firms score against this measure of improved productivity and competitiveness, and there is some indication that the likelihood of benefiting in this way increases amongst older firms (although this is not statistically significant). The p anel bel ow pr ovides further details o f how  A 06 has  be en calculated for t his survey. The chart below includes comparative data for users of UKTI support (from PIMS) 
scoring against Measure A0612
. Base: All supported firms excluding non-users just receiving Certificates of Origin or <1 hour of 'other' support (Base)  
Non-Users - Total (127), Up to 5 years old (36), 6-10 years old (36), Over 10 years old (55),  
Users - Total (3945), Up to 5 years old (952), 6-10 years old (664), Over 10 years old (2313) As d emonstrated a bove, two-thirds o f UKTI us ers are cl assified a s significantly improving their productivity and competitiveness as a result of the support, compared to just two-fifths of supported non-users. 


## 11.7 'Light Touch' Support

A small number o f n on-user f irms (15) h ad r eceived export-related s upport bu t indicated t hat t his o nly c onsisted o f C ertificates o f O rigin ( from t he C hamber of Commerce) or 'other' support that lasted less than 1 hour.  Due to the minimal nature of this assistance, these firms were not asked the full range of impact questions but instead were simply asked whether it had any positive impact on the performance of their firm.  The table below shows these results (net of non-additionality). 

 
 
Total 

| Base: 'Light touch' supported firms    | 15    |
|----------------------------------------|-------|
| Yes                                    | 39%   |
| No                                     | 36%   |
| Non-additional                         | 25%   |

 Reflecting the light nature of the support received, less than half of these firms felt that it had a positive impact on their business performance and a quarter judged it to be non-additional (i.e. they would have achieved similar results anyway). 

## 12. Economic Climate

12.1 Sustained Economic Growth Or Increasing Demand Overseas Those non -user f irms that w ere c urrently ex porting w ere as ked w hether t heir business ha d benefited from s ustained economic g rowth or  i ncreasing de mand i n any ov erseas c ountries i n t he previous year.  Comparative da ta has  also be en provided for users of UKTI support. Base: All exporters (Base, Don't know/Refused) Non-Users - Total (524, 3%), Up to 5 years old (157, 3%)  6-10 years old (178, 2%), Over 10 years old (189, 3%)  
Users - Total (3552, 2%), Up to 5 years old (734, 2%), 6-10 years old (594, 1%), Over 10 years old (2208, 2%) There is some evidence that UKTI users are better placed to benefit from economic growth or increasing demand overseas than is the case for non-users.  Approaching two-thirds of UKTI users have benefited in this way over the past year, compared to less t han a third of non-users.  I n particular, UKTI users were more likely t o have benefited from growth/demand arising from outside of the EU. The considerable difference between users and non-users in this respect is likely to be p artly due t o t he former being more ' involved' ex porters ( i.e. ac tive i n more markets, overseas sales account for a greater proportion of turnover, etc).  However, the results also suggest that the support provided by UKTI may put firms in a better position to benefit from any positive changes in overseas economies. The chart below tracks how responses to this question have changed over the last 2 years. 



Base: All exporters (Base, Don't know/Refused) For both users and non-users, there appears to have been a rise in the proportion of firms ben efiting f rom e conomic g rowth or  i ncreased de mand ov erseas.  H owever, this increase is much more pronounced amongst UKTI clients. 

 

12.2 Sterling Exchange Rates All non-user firms were asked whether they felt that they were receiving more orders or enq uiries f rom overseas c ustomers as  a r esult o f t he recent fall i n S terling Exchange rates.  Comparative da ta has  also been provided for us ers o f U KTI support. 

 Base: All respondents (Base, Don't know/refused) Non-Users - Total (300, 5%), Up to 5 years old (99, 6%), 6-10 years old (100, 5%), Over 10 years old (101, 4%) 
Users - Total (2938, 6%), Up to 5 years old (690, 5%), 6-10 years old (494, 3%), Over 10 years old (1744, 6%) There is no difference between users and non-users in this respect, with approaching a q uarter o f firms bel ieving t hat t hey hav e r eceived m ore interest from ov erseas customers as a result of the decline in exchange rates. 

## 12.3 Export Credit Insurance

Those firms that were currently exporting were asked whether they used export credit insurance and, if so, whether they had had any difficulties in accessing it over the previous 6 months.   
 

| Non-Users (PIMS 2011)    | Users (PIMS 20-23)    |
|--------------------------|-----------------------|
|                          |                       |
| 6-10                     | >10                   |
| Total                    |                       |
| Up to 5                  |                       |
| years                    | years                 |
| Total                    |                       |
| Up to 5                  |                       |
| years                    | years                 |
| Base: All exporters      |                       |
|                          |                       |
| 253                      |                       |
|                          |                       |
| 73                       |                       |
|                          |                       |
| 94                       |                       |
|                          |                       |
| 86                       |                       |
|                          |                       |
| 3552                     |                       |
|                          |                       |
| 734                      |                       |
|                          |                       |
| 594                      |                       |
|                          |                       |
| 2208                     |                       |
|                          |                       |
| Yes                      |                       |
| 0%                       |                       |
| 0%                       | 0%                    |
| No                       |                       |
| 7%                       |                       |
| 3%                       | 5%                    |
| Do not use export credit |                       |
| insurance                |                       |
| 85%                      |                       |
| 95%                      | 86%                   |
| Don't know/refused       |                       |
| 8%                       |                       |
| 3%                       | 9%                    |

 Only a s mall pr oportion o f i nternationalising f irms use export c redit i nsurance, although usage i s hi gher am ongst U KTI users t han no n-users ( 14% and 7%  
respectively). None of the non-user firms reported any difficulty in accessing this type of insurance. However, 3% of UKTI users had experienced problems with this and, although only a small proportion, this does equate to around a quarter of all those using export credit insurance. 

## Annex A - Questionnaire Omb Research Ltd Ukti Trade Development Non-User Questionnaire March/April 2011

 TARGET QUOTAS: 
 
- 
100 interviews businesses 0-5 years old (codes 1-5 or 9 at S1c) 

- 
100 interviews with businesses 6-10 years old (code 6 at S1c) 
- 
100 interviews with businesses more than 10 years old (codes 7-8 at S1c) 

## Screener

 ASK ALL 
Good morning/afternoon, my name is … and I am calling on behalf of OMB Research, an independent market research agency. We have been commissioned by UK Trade & Investment and the Department for Business, Innovation and Skills (BIS) to conduct a survey of businesses on the topic of exporting and trading overseas. 

 
ASK ALL 
Could I please speak to either the owner or someone responsible for your firm's strategy in relation to exporting or overseas sales? 

 
INTERVIEWER NO TE - IF THERE I S A N AMED C ONTACT ON SA MPLE YO U CAN ASK FOR THIS PERSON, BUT THEY MAY NOT BE THE BEST PERSON TO SPEAK TO. INTERVIEWER N OTE - YOU M AY T AKE R EFERRALS T O AN OTHER SI TE WITHIN THE UK. 

ASK ALL 
We're conducting an evaluation to measure the impact of overseas business and identify any issues or difficulties that businesses face when trying to do business overseas, particularly in the current economic climate.  UK Trade & Investment will use this to improve the services they offer to help businesses export.  The research will take around 15-20 minutes, depending on your answers.  Is it convenient to speak to you now or would you prefer to make an appointment for another time? 

 
AS NECESSARY: It doesn't matter if you only sell overseas on a small scale, we're interested in speaking to ALL exporters.  Even if you just make the occasional sale to overseas customers, we are still keen to talk to you. AS NECESSARY: A summary of the key findings from this evaluation will be made available on the UK 
Trade 
& 
Investment website, at www.uktradeinvest.gov.uk 
 
 
FOR ALL SAMPLE GROUPS ADD IF NECESSARY 

 
The research is being conducted under the Code of Practice of the Market Research Society, which means that all of the answers you give 
are strictly confidential and anonymous. Participation in this survey is voluntary. 
 
The responses of all organisations taking part will be combined into a statistical report 
 
Your organisation was selected at random from a list of UK businesses held by a commercial list broker 
 
If you wish to check that OMB Research is a bona fide market research agency, you can contact the Market Research Society on 0500 396999, or call James Murray at OMB Research on 01732 220582 or Heather Booth di Giovanni at UK Trade & Investment on 020 7215 4989. 
 
OFFER EMAIL REASSURANCE IF NECESSARY 
 
ASK ALL 
S1a - Can I confirm that you are one of the people best qualified to talk about your company's overseas activities? 

 
INTERVIEWER NOTE: IF KNOW ALREADY THAT YOU ARE SPEAKING TO THE CORRECT PERSON THEN CODE YES AUTOMATICALLY REFERRALS CAN BE TAKEN TO ANY SITE WHEN THE CONTACT FEELS THAT THERE I S S OMEONE W ITHIN THE C OMPANY BET TER PL ACED T O AN SWER QUESTIONS ON THE TOPIC AREAS OUTLINED  
 

Yes  ................................................................................ 1 
No - take referral and being transferred ......................... 2 
No - take referral and arrange call back ......................... 3 No - refused referral 
....................................................... 4 

 
ASK ALL 
S2 - Over the last 2 years have you sold goods or services to any customers based overseas, either directly or via agents or distributors? AS NECESSARY: This includes licensing agreements where you licence your products, services or intellectual property for use overseas. AS NECESARY: This  includes selling to either business or individuals overseas INTERVIEWER NOTE: SOUTHERN IRELAND COUNTS AS OVERSEAS  
 

Yes  ................................................................................ 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 
 

 
 
IF NOT EXPORTED (CODES 2-3 AT S2) 
S3a - Have you seriously considered conducting any business overseas within the last two years? 

Yes  ................................................................................ 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 
IF NOT CONSIDERED EXPORTING (CODES 2-3 AT S3a) 
S3b - Have you actually attempted to win any overseas business within the last two years? 

Yes  ................................................................................ 1 
No 
................................................................................... 2 - CLOSE 
(Don't know) ................................................................... 3 - CLOSE 

 
IF NOT EXPORTED BUT CONSIDERED/ATTEMPTED (CODE 1 AT S3a OR CODE 
1 AT S3b) 
S3c - Can I just check, do you anticipate doing business overseas at all over the next 5 years? 

 

Yes  ................................................................................ 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 
ASK ALL 
S7a –In the last 5 years has your firm received any form of information, advice or support from UK Trade & Investment in relation to doing business overseas?  You may have received this from UK Trade & Investment in the UK, or from a UK embassy or consulate based overseas. 

 

Yes  ................................................................................ 1 No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 
IF RECEIVED UKTI SUPPORT (CODE 1 AT S7a) 
S7b - And can I just check, did this information or advice definitely relate to doing business overseas?  
 

Yes  ................................................................................ 1 - CLOSE 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 



IF PART OF MULTINATIONAL (CODE 1 AT S4) 
S5 - And <IF CODE 1 AT S2 **do you export to /** IF CODE 1 AT S3a OR S3b have you considered exporting to > any affiliated companies overseas? 

Yes  ................................................................................ 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 
IF EXPORT TO AFFILIATED COMPANIES (CODES 1 OR 3 AT S5)  
S6 - And <IF CODE 1 AT S2 **do you export to /** IF CODE 1 AT S3a OR S3b have you considered exporting to > any overseas customers other than affiliated companies? 

Yes  ................................................................................ 1 
No 
................................................................................... 2 - CLOSE 
(Don't know) ................................................................... 3 - CLOSE 

 

## Section X: Usage Of Trade Development Services

 
ASK ALL 
X1 - Over the last 2 years, has your firm received any information, advice or support in relation to DOING BUSINESS OVERSEAS from any of the following? 

READ OUT - CODE ALL THAT APPLY - RANDOMISE  
 
AS NECESSARY: we are only asking about support relating to overseas business. 

 

A bank (other than just setting up accounts, payments, etc.) ... 1 A consultant 
............................................................................. 2 
A market research company .................................................... 11 
A Trade Association 
................................................................. 4 
The Chamber of Commerce .................................................... 5 A Regional Development Agency (RDA) 
.................................. 6  
HM Revenue & Customs ......................................................... 9 
Anyone else? (SPECIFY) ........................................................ 95 
None of these .......................................................................... 96 
(Don't know) ............................................................................ 97 

 
READ OUT IF 2 OR MORE PROVIDERS SELECTED AT X1 
For the next few questions I'd like you to think about all the help or support you've received from these external providers over the last 2 years, and answer about this support overall. 



IF RECEIVED ANY SUPPORT (CODES 1-95 AT X1)  
X2a - Which of the following forms did this support take? READ OUT - CODE 
ALL THAT APPLY - ROTATE 
 
ALWAYS ASK CODES 5, 6 & 8 IN ORDER & ALWAYS ASK CODES 3 & 4 IN ORDER 
 

Help accessing finance or funding opportunities .........................................1 Help identifying or accessing business contacts overseas (such as 
customers or business partners) ...........................................................2 
Help with doing marketing research overseas 
.............................................3 
Help with developing your overseas business strategy ...............................4 Information or advice about how to do business in an overseas market 
(such as help dealing with either the regulatory or cultural environment) 
.........................................................................................5 
Information or advice about entering a new market 
.....................................6 
Information or advice about business opportunities in an overseas market 
.8 
ONLY SHOW IF CODE 9 OR 95 AT X1: Political support (such as help 
resolving an issue with an existing contract, or help accessing a regulated market) 
..................................................................................10 
ONLY SHOW IF CODE 5 AT X1: Certificates of Origin 
...............................11 
Anything else? (SPECIFY) 
..........................................................................95 
(Don't know) ...............................................................................................97 
 

IF RECEIVED ANY SUPPORT (CODES 1-95 AT X1) 
X2b - And did you have to pay for any of this support? SINGLE CODE 

 Yes  ................................................................................ 1 No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 
IF RECEIVED ANY SUPPORT (CODES 1-95 AT X1) 
X2c - Overall, how much time would you estimate that < IF ONLY ONE 
SELECTED AT X1 <NAME OF PROVIDER FROM X1> / IF MORE THAN ONE 
SELECTED AT X1 these external providers > they spent providing this information, advice or support?  Would you say it was…?  READ OUT 
 

| More than a week of their time    |    1  |
|-----------------------------------|-------|
| 3-5 day's work 2                  |       |
| 1-2 day's work 3                  |       |
| Or, less than a day's work        |    4  |
| (Don't know) 5                    |       |

 
IF LESS THAN A DAY AT X2c (CODE 4) 
X2d - Would you say that it was more or less than an hour's work?  READ 
OUT 

More than an hour's work ............................................... 1 
Less than an hour's work ................................................ 2 
 (Don't know) .................................................................. 3 



IF RECEIVED ANY SUPPORT (CODES 1-95 AT X1)  
X4 - I'm now going to read through a list of service aspects and I'd like you to rate your experience of each one on a scale of 1 to 5, where 1 is 'very poor' and 5 is 'very good'. 

Overall, how would you rate the quality of the support you have received from < IF ONLY ONE SELECTED AT X1 <NAME OF PROVIDER FROM X1> / IF MORE 
THAN ONE SELECTED AT X1 these external providers **> in terms of…**  READ 
OUT - RANDOMISE 
 

(a) The quality & relevance of the information they provided  
(b) DELETED 
(c) The quality & relevance of any contacts it allowed you to make 
(d) Their attitude and professionalism 
(e) Their objectivity and acting in your best interests 

 

1 - Very poor  ................................................................. 1 
2 ..................................................................................... 2 
3 ..................................................................................... 3 
4 ..................................................................................... 4 
5 - Very good ................................................................. 5 
Not relevant .................................................................... 6 
(Don't know) ................................................................... 7 

## Section B: Export Strategy

 ASK ALL 
I'd now like to move on to talking a bit more about your current overseas business activity and your plans for the future. 

 
IF ALREADY EXPORTING (CODE 1 AT S2) 
B1 - How long ago did your firm start doing business overseas?   
CLARIFY AS NECESSARY: And by that I mean selling goods or services to either businesses or individuals based abroad. AS NECESSARY Please answer just for the UK part of your business AS NECESSARY Please include any licensing deals with overseas companies READ OUT AS NECESSARY - CATI TO ONLY SHOW FEASIBLE CODES BASED ON ANSWER TO S1c 

 Within the last year ......................................................... 1 
Over 1, up to 2 years ago ............................................... 2 
Over 2, up to 3 years ago ............................................... 3 
Over 3, up to 4 years ago ............................................... 4 
Over 4, up to 5 years ago ............................................... 5 
Over 5, up to 10 years ago ............................................. 6 
Over 10, up to 20 years ago ........................................... 7 
Over 20 years ago .......................................................... 8 
(Don't know) ................................................................... 10 
(Refused) 
........................................................................ 11 

 
ASK ALL 
C11 - <IF S2=2-3 You mentioned earlier that you had considered or attempted to do business overseas in the last 2 years.>  I'm now going to read out some possible reasons for <IF B1=1-2 OR S3c=1 OR 3 **starting to sell overseas /** IF 
S3c=2 **considering selling overseas /** IF B1=3-11 AND B3b=1 seeking to increase your overseas sales / IF B1=3-11 AND B3b=2-5 doing business overseas >, and I'd like you to tell me the extent to which each one applies to your business.  Please give me a score of 1 to 5 where 1 means that you 'disagree strongly' and 5 means that you 'agree strongly'.  So firstly… 
ON EACH OF THE C11 SCREENS SHOW (AT BOTTOM): 
To what extent do you agree with that?    
 
ORDER OF STATEMENTS TO BE RANDOMISED 
 
(a) You <IF B1=1-2 **started selling overseas /** IF S3c=1 OR 3 are looking to start selling overseas / IF S3c=2 **considered selling overseas /** IF B1=3-11 AND B3b=1 
are looking to increase your overseas sales / IF B1=3-11 AND B3b=2-5 sell overseas > to enable you to achieve a level of growth otherwise not possible (b) You <IF B1=1-2 **started selling overseas /** IF S3c=1 OR 3 are looking to start selling overseas / IF S3c=2 **considered selling overseas /** IF B1=3-11 AND B3b=1 
are looking to increase your overseas sales / IF B1=3-11 AND B3b=2-5 sell overseas > because it allows you to more fully utilise your existing capacity 
(c) You <IF B1=1-2 **started selling overseas /** IF S3c=1 OR 3 are looking to start selling overseas / IF S3c=2 **considered selling overseas /** IF B1=3-11 AND B3b=1 
are looking to increase your overseas sales / IF B1=3-11 AND B3b=2-5 sell overseas > to reduce your dependence on the UK market (d) You <IF B1=1-2 **started selling overseas /** IF S3c=1 OR 3 are looking to start selling overseas / IF S3c=2 **considered selling overseas /** IF B1=3-11 AND B3b=1 
are looking to increase your overseas sales / IF B1=3-11 AND B3b=2-5 sell overseas > to improve your firm's profile or credibility 
(e) You <IF B1=1-2 **started selling overseas /** IF S3c=1 OR 3 are looking to start selling overseas / IF S3c=2 **considered selling overseas /** IF B1=3-11 AND B3b=1 
are looking to increase your overseas sales / IF B1=3-11 AND B3b=2-5 sell overseas > because you <IF B1=1-2 OR S2=2-3 **received** / IF B1=3-11 keep getting> orders or enquiries from overseas customers ONLY ASK IF EXPORTING 2 YEARS OR LESS (B1=1-2 OR S2=2-3) (f) You <IF B1=1-2 **started selling overseas /** IF S3c=1 OR 3 are looking to start selling overseas / IF S3c=2 considered selling overseas > because you have personal connections overseas or a desire to travel abroad 

| 1 - Disagree strongly    |    1  |
|--------------------------|-------|
| 2 2                      |       |
| 3 3                      |       |
| 4 4                      |       |
| 5 - Agree strongly       |    5  |
| (Don't know) 6           |       |



ASK ALL EXCEPT NOT PLANNING TO EXPORT (I.E. DO NOT ASK IF CODE 2 AT 
S3c) 
C10a - Overall, < IF ALREADY EXPORTING (CODE 1 AT S2) would you say that your experiences of doing business overseas have led / IF ONLY ATTEMPTED TO WIN EXPORT BUSINESS (CODES 2 OR 3 AT S2) do you expect that doing business overseas will lead > you to make any significant changes to your products or services? 

Yes  ................................................................................ 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 
ASK IF CHANGED PRODUCTS/SERVICES (CODE 1 AT C10a) AND ALREADY EXPORTING (CODE 1 AT S2) 
C10b - And were these changes to your products or services designed for your overseas customers, your UK customers or both? 

| Overseas customers     |    1  |
|------------------------|-------|
| UK customers 2         |       |
| Both                   |    3  |
| (Don't know) 4         |       |

 
ASK IF CHANGED PRODUCTS/SERVICES (CODE 1 AT C10a) AND ALREADY EXPORTING (CODE 1 AT S2) 
C10c - And to what extent have these changes been a benefit to your business?  Please answer on a scale of 1 to 5, where 1 means 'to no extent' and 5 means they have benefited you 'to a critical extent'. 

| 1 - To no extent         |    1  |
|--------------------------|-------|
| 2 2                      |       |
| 3 3                      |       |
| 4 4                      |       |
| 5 - To a critical extent |    5  |
| (Don't know) 6           |       |

 
ASK ALL 
B29 - Compared with a year ago, would you say that your business is now…?  
READ OUT - SINGLE CODE 
 

| Focussing more on overseas markets than it was a year ago    |     | 1    |
|--------------------------------------------------------------|-----|------|
| Focussing less on overseas markets                           | 2   |      |
| Or has there been no change in this respect                  | 3   |      |
| (Don't know)                                                 |     |      |



IFCODE 1 AT B30 
B30a - And do you use them in...?  READ OUT -  SINGLE CODE. 

 

| All overseas countries you do business in    | 1    |
|----------------------------------------------|------|
| Most                                         | 2    |
| Or, just some                                | 3    |
| (Don't know)                                 | 4    |
| (Refused)                                    |      |

## Ask All F10A Thinking Now About Your Main Business Objectives, Which One

 of the 
following would you say is the key focus for your business at this time? 
READ OUT. SINGLE CODE IF POSSIBLE BUT MULTICODE ALLOWED 
 

| Maintaining sales of your current products or services    |    1  |
|-----------------------------------------------------------|-------|
| Increasing sales of your current products or services     |    2  |
| Or, developing new products or services 3                 |       |
| (None of these) 4                                         |       |
| (Don't know)                                              |    5  |

 
IF CODE 2 AT F10a 
F10b <IF CODES 2 A ND 3 AT F10a Thinking about your current products or 
services, > Are you mainly looking to…? READ OUT. SINGLE CODE 
 

| Increase sales in countries in which you are already operating           |    1  |
|--------------------------------------------------------------------------|-------|
| Or, introduce your current products or services into new countries ... 2 |       |
| (Both)                                                                   |    3  |
| (None of these) 4                                                        |       |
| (Don't know)                                                             |    5  |

 
IF CODE 3 AT F10a 
F10c <IF CODES 2 A ND 3 A T F10a Thinking now about the development of 
any new products or services, > Will these new products or services be 
aimed at customers based in…? READ OUT. SINGLE CODE 
 

| Countries in which you are already operating    |    1  |
|-------------------------------------------------|-------|
| Or, new countries                               |    2  |
| (Both)                                          |    3  |
| (None of these) 4                               |       |
| (Don't know)                                    |    5  |

 
IF ALREADY EXPORTING (CODE 1 AT S2) 
B25b - In the last year, has your business benefited from sustained economic growth or increasing demand in any overseas countries?   SINGLE CODE.  IF 
YES, PROBE: Does this relate to countries within the EU, outside the EU or both? 

Yes, in countries within the EU ....................................... 1 
Yes, in countries outside of the EU ................................. 2 
Yes, both ........................................................................ 3 
No  ................................................................................. 4 
(Don't know)  .................................................................. 5 



ASK ALL 
B26d - And thinking about the recent fall in Sterling exchange rates, do you think that you are getting more orders <IF S2=2-3 or enquiries> from overseas customers as a result of this?   
 

Yes ................................................................................. 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 
(Refused) 
........................................................................ 4 

 
IF ALREADY EXPORTING (CODE 1 AT S2)  
B5a - In the last 2 years have you successfully started doing business in any new countries? CLARIFY AS NECESSARY: By that I mean have you started selling goods or services in a country that your business hasn't dealt with before? 

Yes ................................................................................. 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 
IF ENTERED NEW COUNTRIES (CODE 1 AT B5a) 
B5b - Which new countries have you started doing business in over the last 2 
years? WRITE IN - PROBE AS NECESSARY Any others? 

 

 ....................................................................................... (None/Not entered any new countries) 
............................ 96 
(Don't know) 
 ................................................................... 97 

 
 
ASK ALL 
B13 - I'm now going to read out a list of issues that you may have had to tackle when trying to develop the overseas side of your business.  Thinking about all the overseas countries that you've < IF S 2 =  1 **dealt with/** IF S2 =  2  or  3  
considered doing business with>, has YOUR BUSINESS ever had any difficulties with…?  
ROTATE LIST 
ALWAYS ASK STATEMENT H AFTER STATEMENT G ALWAYS ASK STAEMENTS B, K & C IN THAT ORDER. 

ON EACH OF THE B13 SCREENS ADD ABOVE EACH STATEMENT  
AS NECESSARY- 'Have you had any difficulties with...?' 
 
ON EACH OF THE B13 SCREENS ADD AFTER EACH STATEMENT  
AS NECESSARY- **'Please only answer about difficulties you have <**IF S 2=1 
experienced when doing business overseas / I F S2=2-3 already experienced when trying to do business overseas>.' 
 
(a) Obtaining basic information about an overseas market 
 

(b) Identifying who to make contact with in the first instance 
(c) Building relationships with key influencers or decision-makers  
(d) Dealing with legal or tax regulations or standards overseas 
(g) Language barriers 
(h) Cultural differences outside of language barriers 
(j) A preference on the part of overseas customers for doing business with 
firms from their own country 
(k) Establishing an initial dialogue with prospective customers or business 
partners 
(p) Finding the necessary management time to devote to doing business in an 
overseas country 
(q) Protecting your intellectual property 
(r) Ensuring you get paid and enforcing contracts 
(s) Dealing with customs procedures or paperwork 
 

Yes ................................................................................. 1 
No 
................................................................................... 2 

(Don't know) ................................................................... 3 
 
ASK FOR EACH OF A-S THAT RESPONDENT AGREES IS A DIFFICULTY THEY HAVE ENCOUNTERED. ASK B14 DIRECTLY AFTER B13 FOR EACH ONE 
B14 - And to what extent do you feel that this has been a difficulty, on a scale of 1 to 5 where 1 means it has 'not been at all difficult' and 5 means it has been 
'extremely difficult'. 

 1 - Not at all difficult ....................................................... 1 
2  .................................................................................... 2 3  .................................................................................... 3 4  .................................................................................... 4 5 - Extremely difficult  
..................................................... 5 
(Don't know) ................................................................... 6 

IF NO (CODE 2) AT B13g OR CODES 1-2 AT B14g - TO FOLLOW DIRECTLY 
AFTER B13/14g B20g - Is the reason that you haven't had <IF CODE 2 AT B13g OR CODE 1 AT 
B14g **any /** IF CODE 2 AT B14g many> difficulties with language barriers because…? READ OUT  
 

|                                                               | You've always been able to use English as a common language    |   1  |
|---------------------------------------------------------------|----------------------------------------------------------------|------|
| Or, because you have staff with the necessary language skills |                                                                |   2  |
| (Other)                                                       | 95                                                             |      |
| (Don't know)                                                  | 97                                                             |      |

 
IF NO (CODE 2) AT B13h OR CODES 1-2 AT B14h - TO FOLLOW DIRECTLY 
AFTER B13/14h B20h - Is the reason that you haven't had <IF CODE 2 AT B13h OR CODE 1 AT 
B14h **any /** IF CODE 2 AT B14h many> difficulties with cultural differences because…? READ OUT  
 

| You haven't come across any cultural differences             |   2  |
|--------------------------------------------------------------|------|
| Or, because you have staff who are familiar with the culture |   3  |
| (Other)                                                      |  95  |
| (Don't know)                                                 |  97  |

 
IF NO (CODE 2) AT B13k OR CODES 1-2 AT B14k - TO FOLLOW DIRECTLY 
AFTER B13/14k B20k - Is the reason that you haven't had <IF CODE 2 AT B13k OR CODE 1 AT 
B14k **any /** IF CODE 2 AT B14k many> difficulties establishing an initial dialogue because…? READ OUT  
 

| You already had contacts        |   1  |
|---------------------------------|------|
| They initiated the contact      |   2  |
| Or, some other reason (SPECIFY) |  95  |
|                                 |      |
| (Don't know)                    |  97  |

 

## Section Y: Reasons For Not Seeking Support & Awareness

 
IF HAVE NOT RECEIVED ANY SUPPORT (CODES 96 OR 97 AT X1)  
Y1 - Thinking about < IF AT LEAST ONE 'YES' AT B13 **these** IF ALL 'NO' AT B13 
any > difficulties that you < IF ALL 'NO' AT B13 may > have had to tackle when < 
IF S2 = 1 **developing/** IF S2 = 2 or 3 trying to develop>the overseas side of your business, do you think you would have benefited from some kind of external advice or support to help you overcome any of these difficulties? 

Yes ................................................................................. 1 
No 
................................................................................... 2 
(Maybe) .......................................................................... 3 
(Don't know) ................................................................... 4 

 
IF YES OR MAYBE AT Y1 (CODES 1 OR 3) 
Y2 - What types of advice or support would have helped? DO NOT READ OUT 
BUT PROMPT TO CLARIFY.  CODE ALL THAT APPLY 

| General info/advice on how to export / enter new markets    |     |   1  |
|-------------------------------------------------------------|-----|------|
| Info/advice on export regulations/rules/taxes               | 2   |      |
| Info about specific countries / market intelligence         | 3   |      |
| Help with overseas marketing strategy                       | 4   |      |
| Help with accessing business contacts                       | 5   |      |
| Info/advice about securing payment/enforcing contracts      |     |   6  |
| Finance/grants/subsidies                                    | 7   |      |
| Other (Specify)                                             | 95  |      |
| (Don't know)                                                | 97  |      |

 
IF YES OR MAYBE AT Y1 (CODES 1 OR 3) 
Y3 - Are you aware of anywhere or anyone who could provide this type of advice or support? ADD AS NECESSARY: Please include all sources of export support that you are aware of even if you wouldn't personally use them. 

 

Yes ................................................................................. 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 
 
IF YES AT Y3 
Y4 - Who could provide this? CODE ALL THAT APPLY - DO NOT PROMPT 
ADD AS NECESSARY: **Anyone else?** 
 

A bank ............................................................................ 1 A consultant 
.................................................................... 2 
Friends, colleagues or other business associates 
........... 3 
A Trade Association 
........................................................ 4 
The Chamber of Commerce ........................................... 5 A Regional Development Agency (RDA) 
......................... 6 
UK Trade & Investment (UKTI) ....................................... 7 
Department for Business, Innovation and Skills (BIS) ..... 8 
Business Link ................................................................. 9 
HM Revenue and Customs 
............................................. 11 
A Market Research Company 
......................................... 12  
Anyone else? (SPECIFY) ............................................... 95 (No-one that I am aware of) ............................................ 96 (Don't know) ................................................................... 97 

 
IF NO AT Y1 
Y7 - Could you tell me why you think you would not have benefitted from any external advice or support? DO NOT READ OUT BUT PROMPT TO CLARIFY.  
CODE ALL THAT APPLY 
 

Already have experience / expertise within the company 1 
Have our own/existing contacts ...................................... 2 
Customers contact us / we respond to orders/enquiries 
.. 3 
Have a niche market/product .......................................... 4 
No one could provide relevant help/information .............. 5 
Manage fine as we are / do it ourselves 
.......................... 6 
Easy /straightforward / don't need help ........................... 7 
Other (Specify) ............................................................... 95 
(Don't know) ................................................................... 97 

 
ASK ALL 
S8 - Before today, were you aware that UK Trade & Investment provide assistance to help UK firms do business overseas? 

 

Yes  ................................................................................ 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 


ASK ALL 
S9 - I'm now going to read out details of some services that are designed to 
help UK firms do business overseas.  For each one, I'd like you to tell me 
whether you're aware of it, and whether you would be interested in using this 
type of service.  
 
Please note that this is just to measure interest in these services and your 
details will not

               be passed on to UKTI.  If you would like to find out more about 
any of these services we can arrange to send you details at the end of the 
interview.   

 
So firstly…  READ OUT DESCRIPTION FOLLOWED BY QUESTIONS FOR EACH 
OF A-D.  RANDOMISE ORDER OF A-D A) The Overseas Market Introduction Service, or OMIS, is a charged service delivered by UK embassies and consulates overseas.  It can include advice about an overseas market or the identification of possible customers or business partners. 

 
A1 - Have you heard of this service before? 
 

Yes  ................................................................................ 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 

A2 - And would you be interested in using this service?   

 

Yes  ................................................................................ 1 
No 
................................................................................... 2 
(Maybe) .......................................................................... 3 
(Don't know) ................................................................... 6 

## B1 & B2 - Deleted C) Uk Trade & Investment Employ A Number Of International Trade Advisors, Who Are Based In The Uk And Provide One-To-One Advice To Help Firms Develop Their Overseas Business.  They Can Also Provide Referrals To Other Support Or Specialist Advice.

 
C1 - Have you heard of this service before? 

 
Yes  ................................................................................ 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 

C2 - And would you be interested in using this service?   

 

Yes  ................................................................................ 1 
No 
................................................................................... 2 
(Maybe) .......................................................................... 3 
(Don't know) ................................................................... 6 


## Section C: Impact & Outcomes

 
IF MENTIONED AT LEAST ONE FORM OF SUPPORT AT X1 (CODES 1-95), EXCEPT… 

- 
DO NOT ASK IF ONLY MENTIONED 'CERTIFICATE OF ORIGIN' (CODE 11 
AT X2a) 
- 
DO NOT ASK IF ONLY MENTIONED 'OTHER' (CODE 95 AT X2a) AND 
LESS THAN 1 HOUR (CODE 2 AT X2d) 

C7 - Thinking now specifically about the support you have received from 
<CATI TO INSERT ALL FROM X1, UNLESS 3 OR MORE CODED & THEN INSERT 
the external providers you mentioned earlier > in relation to overseas business.  
I'm going to read out a list of ways in which your business may have benefited 
from this support and I would like you to tell me whether this is a benefit that 
you have felt as a DIRECT RESULT.  
So, firstly… 
 
STATEMENTS TO BE RANDOMISED WITHIN GROUPS.   
ALWAYS ASK GROUP 1 FIRST, RANDOMISE ORDER OF GROUPS 2-3, ALWAYS 
ASK GROUP 4 LAST. 
 
ON EACH OF THE C7 SCREENS ADD AFTER EACH STATEMENT  
AS N ECESSARY- 'Is this a benefit you have experienced as a result of the 
support you have received from < CATI TO INSERT ALL FROM X1>?' 
 
GROUP 1 - BARRIERS TO MARKET ACCESS OVERCOME 
(a) Gained access to prospective customers, business partners or other people 
that you would otherwise have been unable to meet (as a result of the support)  
(c) Improved your company's profile or credibility overseas (as a result of the 
support) 
(e) Gained access to information that you would otherwise have been unable to 
come by (as a result of the support)  
 
GROUP 2 - INCREASED SKILLS 
(h) Gained the confidence to either explore a new market or expand in an 
existing market (as a result of the support) 
(i) Improved your knowledge of the competitive environment in an overseas 
market (as a result of the support) 
 
GROUP 3 - CHANGED BEHAVIOUR (& MISCELLANEOUS) 
(l) Made improvements to your products, services, processes or management 
practices (as a result of the support) 
AS N ECESSARY By 'products and services' I mean everything that your 
business offers 
(t) Made improvements to your new product or service development strategy 
(as a result of the support) 
(n) Improved the way you do business in overseas markets (as a result of the 
support) 
(o) Improved your overseas marketing strategy (as a result of the support)  
 

Still thinking about the possible ways in which your business may have benefited from the support you received from < CATI TO INSERT ALL FROM 
X1>. Have you benefited from…? GROUP 4 - IMPROVEMENTS IN HARD BUSINESS PERFORMANCE 
(q) Increased total sales (as a result **of the support)** 
FOR EAC H T HAT R ESPONDENT A GREES I S A BEN EFIT (ASK C 8 DIRECTLY AFTER C7) 
C8 - And to what extent do you feel that this has been a benefit of the support you received. Please give me a score of 1 to 5, where 1 means 'to no extent' and 5 means 'to a critical extent'. READ OUT AS NECESSARY  
 

| 1 - To no extent          |
|---------------------------|
| 2 2                       |
| 3 3                       |
| 4 4                       |
| 5 -To a critical extent 5 |
| (Don't know) 6            |

 
ASK IF ONLY MENTIONED CERTIFICATE OF ORIGIN (CODE 11 AT X2a) OR (ONLY MENTIONED 'OTHER' (CODE 95 AT X2a) AND LESS THAN 1 HOUR 
(CODE 2 AT X2d)) 
C10 - Thinking now specifically about the support you have received from 
<CATI TO INSERT ALL FROM X1, UNLESS 3 OR MORE CODED & THEN INSERT the external providers you mentioned earlier > in relation to sales in overseas markets.  Would you say that this support has had any positive impact on the performance of your firm? 

 Yes ................................................................................. 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 
IF MENTIONED AT LEAST ONE FORM OF SUPPORT AT X1 (CODES 1-95) BUT 
DO NOT ASK IF NO (CODE 2) AT EVERY C7 STATEMENT  
C9 - Which of the following best describes your view on the contribution the support you have received from <CATI TO INSERT ALL FROM X1, UNLESS 3 OR MORE CODED & THEN INSERT these external providers > has made to your firm? READ OUT - SINGLE CODE 
We would have achieved similar results anyway............................. 

1 

| We would have achieved similar results, but not as quickly    | 2    |
|---------------------------------------------------------------|------|
| We would have achieved some but not all of the results        | 3    |
| We probably would not have achieved similar results           | 4    |
| We definitely would not have achieved similar results         |      |
| (None of these)                                               |      |


## Section F: Profiling

 
ASK ALL 
Finally, I'd just like to ask you some questions about your business - these are just to classify your answers for analysis purposes. You may of course skip any question you do not wish to answer.  Please be assured your responses are confidential and will only be presented to UK Trade & Investment in the form of statistical summaries. 

 
ASK ALL EXCEPT 'NOT YET TRADING' (CODE 9) AT S1c  
F1a- Which of these best describes the current status of your business?  READ 
OUT - MULTICODE 
 

| An independent business with no subsidiaries    |    1  |
|-------------------------------------------------|-------|
| A business with subsidiaries 2                  |       |
| A subsidiary of another business 3              |       |
| (A not for profit organisation) 4               |       |
| (Other (SPECIFY))                               |   95  |
| (Don't know) 97                                 |       |
| (Refused)                                       |   98  |

 
IF CODES 1-3 AT F1a F1b - Can I just check, is the business UK or foreign-owned? 

 

| UK-owned                       |    1  |
|--------------------------------|-------|
| Foreign-owned                  |    2  |
| (Joint UK and foreign-owned) 3 |       |
| (Don't know) 4                 |       |
|                                |       |

TEXT IF CODE 3 AT F1a From now on when I ask about your business I'd like you to answer just for the subsidiary in which you work. 

 
ASK ALL EXCEPT 'NOT YET TRADING' (CODE 9) AT S1c  
F2a - How many people are currently employed by your business within the UK?   
 
INTERVIEWER NOTE AS NECESSARY Please include both full and part-time staff. 

 
INTERVIEWER NOTE Please only include UK-based staff 
 
Write in number (0+): (Refused) 
(Don't know) - PROMPT WITH RANGES 
 
SHOW IF ZERO ENTERED AT F2a INTERVIEWER NOTE - Please confirm that the firm has NO employees in the UK. If they are unsure or don't know please code accordingly rather than putting zero 
 
ASK IF DON'T KNOW AT F2a F2b - If you had to estimate, approximately how many people are employed by your business in the UK?   
READ OUT AS NECESSARY 

 No employees 
................................................................. 1 
1-4 .................................................................................. 2 
5-9 .................................................................................. 3 
10-19 .............................................................................. 4 
20-49 .............................................................................. 5 50-99 .............................................................................. 6 100-199 .......................................................................... 7 
200-249 .......................................................................... 8 
250-499 .......................................................................... 9 
500 or more .................................................................... 10 
(Don't know) ................................................................... 11 (Refused) 
........................................................................ 12 

 
IF F2a>250 OR IF F2b=9-10  
F2c - So can I just confirm that you have <INSERT RESPONSE FROM F2a/b> 
employees based in the UK?    
 

Yes ................................................................................. 1 
No  ................................................................................. 2 

 
IF NO, CATI TO ROUTE INTERVIEW BACK TO F2a & INTERVIEWER TO AMEND 
ASK ALL EXCEPT 'NOT YET TRADING' (CODE 9 AT S1c)  
F3a - <IF NOT ESTABLISHED IN LAST YEAR (S1c = NOT1 AND NOT9) Can I ask, what is the current annual turnover of your business / IF ESTABLISHED IN LAST YEAR (S1c =1 OR 9) What do you anticipate will be the turnover of your business in the first year of trading>? 

 
AS NECESSARY By this I mean your annual sales, income or receipts.  
 
IF SUBSIDIARY (CODE 3 AT F1a):  
AS NECESSARY Please just give me the turnover of the subsidiary in which you work 
 
IF HAS SUBSIDIARIES (CODE 2 AT F1a): 
AS NECESSARY Please give me the turnover for the UK part of your business, but including revenues from overseas sales made from the UK 
 
Write in amount in £ (£0+): (Refused) (Don't know) - PROMPT WITH RANGES 
 
CATI TO VALIDATE AMOUNT ENTERED USING RANGES IN F3b 
 
ASK IF BUSINESS OVER 1 YEAR OLD AT S1c (2-8 OR 10-11) 
F8 - <IF BUSINESS MORE THAN 5 YEARS OLD (CODES 6-8 OR 10-11 AT S1c) 
Thinking about your business as a whole, in the last FIVE years would you say that your business has…? / IF BUSINESS 1-5 YEARS OLD (CODES 2-5 AT S1c) 
Thinking about your business as a whole, since your business was established would you say that it has…?> 
READ OUT 
INTERVIEWER TO ADD AS NECESSARY This is just your overall impression of the growth of the business taking account of factors like size, number of employees, turnover and sales. 

 

Remained the same size ................................................ 1 Become smaller 
.............................................................. 2 
Grown moderately .......................................................... 3 
Grown substantially ........................................................ 4 
(Don't know) ................................................................... 5 
(Refused) 
........................................................................ 6 

 
next ASK ALL 
F9 - And, what growth objectives do you have for the business over the next FIVE years?  Do you plan to…?   
READ OUT 
 

Remain the same size .................................................... 1 
Become smaller 
.............................................................. 2 
Grow moderately ............................................................ 3 
Grow substantially .......................................................... 4 
(Don't know) ................................................................... 5 
(Refused) 
........................................................................ 6 

 
ASK ALL 
F11 - Can I just check, do you have a current, written business plan?  
 

Yes ................................................................................. 1 
No  ................................................................................. 2 
(Don't know)  .................................................................. 3 
(Refused) 
........................................................................ 4 

 
IF YES AT F11 
F12 - Does the plan contain any targets relating to revenues from overseas sales? 

Yes ................................................................................. 1 
No  ................................................................................. 2 (Don't know) ................................................................... 3 
(Refused) 
........................................................................ 4 



ASK ALL CURRENTLY EXPORTING (CODE 1 AT S2) 
F21a - Can I just check, does your firm use export credit insurance?  SINGLE 
CODE 
INTERVIEWER NOTE: IF RESPONDENT DOES NOT KNOW WHAT EXPORT CREDIT INSURANCE IS THEN CODE AS 'NO' 
 

Yes ................................................................................. 1 
No 
................................................................................... 2 
(Don't know)  .................................................................. 3 

 
IF USE EXPORT CREDIT INSURANCE (CODE 1) AT F21a F21b - And over the last 6 months, have you had any difficulties in accessing export credit insurance?  SINGLE CODE 
INTERVIEWER NOTE: IF THE RESPONDENT SAYS THEIR EXPORT CREDIT INSURANCE HAS BEEN REDUCED, THEN CODE AS 'YES'  
 

Yes ................................................................................. 1 
No 
................................................................................... 2 
(Don't know)  .................................................................. 3 
(Refused)  
....................................................................... 4 

 
ASK ALL EXCEPT 'NOT YET TRADING' (CODE 9 AT S1c) F14 - How many owners, partners or directors are there in day-to-day control of the business? (at this site) PROBE FOR BEST ESTIMATE 
 
Enter number (Don't know) 
(Refused) 
 
IF ANY NUMBER GIVEN AT F14 (1+) 
F15 - < IF 2+ AT F14 **How many of these owners, partners, or directors** / IF 1 AT 
F14 **Does this person > have degree level or equivalent qualifications?** PROBE 
FOR BEST ESTIMATE INTERVIEWER NOTE: IF THERE IS JUST 1 PERSON ENTER 1 IF YES 
 
Enter number (ALLOW FOR ZERO) 
(Don't know) (Refused) 
 
ASK ALL 
F17 - That's the end of the interview, thank you very much for taking part.  
Would you be willing to take part in any future research on this topic conducted on behalf of UK Trade & Investment or the Department for Business, Innovation & Skills (BIS)? 

 

Yes ................................................................................. 1 
No 
................................................................................... 2 
(Don't know) ................................................................... 3 

 
IF CODE 1 AT S9A2 OR S9C2 OR S9D2 
F20 - You mentioned earlier that you may be interested in some of the services offered by UKTI.  Would you like to be emailed some more information on these services?  IF Y ES, R ECORD EM AIL ACCURATELY & R EAD I T BAC K 
LETTER BY LETTER TO CONFIRM. 

 

| Yes (RECORD EMAIL ADDRESS)    |    1  |
|-------------------------------|-------|
| No                            |    2  |

 
ASK ALL 
F18 - Finally as proof of this interview please could I just confirm your business postcode? 

CATI TO D ISPLAY P OSTCODE I F AVAI LABLE - AMEND I F M ISSING O R 
INCORRECT 
 
ASK ALL 
F19 - And may I take a note of your name? 

WRITE IN…………………………………………… 

## Standard Thank & Close