Call for evidence outcome

Call for evidence report: expanding DBT export support in the Nations

Updated 21 February 2024

1. Executive Summary

This report focuses on responses to the Department for Business and Trade’s (DBT) call for evidence on the expansion of export support to Northern Ireland, Scotland, and Wales. The department proposes increasing its export support in the Nations by introducing one-to-one support that complements existing services in the form of DBT International Trade Advisors (ITAs). ITAs are currently available in the English regions, and introducing this support to Northern Ireland, Scotland and Wales, will ensure that DBT offers consistent export support across the UK. This rationale is set out in the corresponding document Exporting for Growth, DBT Services in the Nations. 

1.1 Respondents

This was a public call for evidence which was additionally targeted at key stakeholders to gather views on how the ITA service should be deployed in each of the nations. Respondents shared their views by:

• submitting an anonymous response to an online survey hosted on GOV.UK. Respondents did not need to answer each question to move on to the next, so the total number of responses to each question varies. The maximum number of responses to one question was 173 and the minimum was 15
• submitting a written response to the online survey questions via email directly to DBT (14 responses)
• taking part in a series of 29 engagements with expert stakeholder groups and businesses based in the nations, these included: Business Representative Organisations, sector bodies, Chambers of Commerce, local authorities, Export Champions, and business support organisations. In Scotland, the majority of these stakeholder meetings were undertaken alongside Scotland Development International. Stakeholder meetings were held to raise the profile of the engagement process and to encourage organisations to submit a response. Where there were additional in-depth discussions about the expansion of export support, views have been included in this report (7 meetings)

Throughout this report, findings from the online survey, written responses sent via email, and meeting notes have been summarised together under the title free-text responses. In some instances, the same organisation submitted both a written response and attended a meeting. To avoid double counting, these responses were combined into one response which has been included in the analysis.

2. Summary of findings

2.1 Deployment model

We asked respondents to select which deployment model for the ITA service would ensure there is a geographical and sectoral spread of support out of three options:

• a ‘sectoral approach’ where ITAs are sector specialists
• a ‘regional approach’ where ITAs are based and support specific geographical areas working across all sectors
• a ‘hybrid approach’ which provides a combination of a sectoral and regional approach depending on the strengths of a local region
• other

A hybrid approach was the most popular answer in all three nations. This was followed by a sectoral approach, then a regional approach in Northern Ireland and Scotland. In Wales, a sectoral and regional approach were selected by an equal number of respondents.

2.2 Grouping business for export support

We asked respondents whether there is value in grouping businesses into cohorts based on similar characteristics, for example, sector or export growth, and then providing a programme of export support. Across all nations, grouping businesses into cohorts was seen as ‘beneficial’ or ‘very beneficial’.

2.3 Operational approach  

We asked respondents to specify their preferred approach for how ITAs should be operationalised in Northern Ireland, Scotland, and Wales. Respondents could choose one answer from multiple choice options, which were different for each nation (see annex for the full list).

Northern Ireland operational approach

When respondents were asked to choose a preference for ITA prioritisation in Northern Ireland, the most common answer given was that support should be targeted at specific sectors.

Scotland operational approach

The most common answer given for Scotland was that support should be mapped to the Highlands and Islands Enterprise, South of Scotland Enterprise, and Scottish Enterprise areas.

Wales operational approach

The most common answer given for Wales was that support should be dedicated to specific sectors. However, this was closely followed by ‘support dedicated to specific regions of Wales’. These results should be interpreted with caution due to the small response rates.

2.4 Duration of support

We asked respondents how long one-to-one support should last for. Respondents generally found it challenging to provide an exact time period and where they did, there was significant variation (4 weeks – over 5 years). This was consistent across the three nations. Instead, respondents believe that the duration of support should be flexible and decided based on the business needs. Several respondents across all nations gave examples of export goals that would warrant support ending. These included a mixture of export sales, and knowledge/confidence building:

• until a business is confidently exporting
• when the business can export independently (and export support is no longer required)
• when they have independent capacity to reach a certain amount of export sales
• when they have gained knowledge, a network, and confidence to grow exports

Some respondents provided practical suggestions to ensure that an ITA is not providing resource to a business who is not likely to grow through exporting. These included low engagement from the business leading to the ITA service ceasing.

2.5 Barriers to exporting

We asked respondents to select the barriers to exporting which they think are most prevalent for businesses. The barriers that were mentioned most frequently were knowledge of exporting and access to contacts.

2.6 General feedback

Several respondents left general feedback about DBT’s proposal. Key points were:

• positive views on the ITA expansion - the majority of organisations that provided in-depth feedback were positive about DBT’s proposal to expand the ITA service to the Nations, with some public sector bodies and business associations in particular stating they thought it is an important opportunity to provide additional export support to businesses
• the ITA service should complement existing export support - respondents feel strongly that the expansion of this service to the three nations should enhance existing support, rather than duplicating what’s already on offer. Whilst the majority of respondents were generally positive about DBT’s proposal, they feel that it requires careful management to ensure support is complementary
• the importance of collaboration - whilst ensuring support is complementary to existing export support is a key challenge, the majority of respondents agree that collaboration between the UK government and export support providers in Northern Ireland, Scotland, and Wales is essential. A range of respondents from business associations, public sector bodies and non-governmental organisations said they are keen to have open channels of communication with DBT, and to feed directly into planning for the ITA roll-out
• Green Freeports (Scotland only) - a theme specific to Scotland, which was mostly discussed in responses from business association, was the allocation of Green Freeports in Scotland. In terms of how to deliver this support, business associations agree that delivering freeport advice within a hybrid deployment model for ITAs is the best fit

3. Background 

DBT aims to ensure its services are available in every part of the UK; DBT is funded to provide a UK-wide offering. The supporting document sets out DBT’s suite of services available to businesses in Northern Ireland, Scotland, and Wales. It aims to help companies understand what help they are eligible for, and how to access it.  

Expanding DBT’s in-person support to Northern Ireland, Scotland, and Wales will provide an equivalent service to the dedicated 1-2-1 support that English businesses can already get from a DBT ITA. DBT will work with the Devolved Administrations, their agencies, and other stakeholders to ensure that such additional DBT resource will be complementary to existing support, including existing trade advisors/trade specialists in the nations. 

On 21 September 2023 DBT launched a call for evidence seeking the views on how the ITA service should be implemented in Northern Ireland, Scotland, and Wales. The responses to the call for evidence are intended to inform the operationalisation of the service in the nations. 

4. Methodology and Demographics

4.1 Format

This report summarises responses to the Department’s call for evidence on how DBT export support should be delivered in Northern Ireland, Scotland, and Wales. Responses were collected in three ways by:

• submitting an anonymous response to an online survey hosted on GOV.UK. Respondents did not need to answer each question to move on to the next, so the total number of responses to each question varies. The maximum number of responses to one question was 173 and the minimum was 15
• submitting a written response to the online survey questions via email directly to DBT (14 responses)
• taking part in a series of 29 engagements with expert stakeholder groups and businesses based in the Nations, these included: business representative organisations, sector bodies, chambers of commerce, local authorities, export champions, and business support organisations. In Scotland, the majority of these stakeholder meetings were undertaken alongside Scotland Development International. Stakeholder meetings were held to raise the profile of the engagement process and to encourage organisations to submit a response. Where there were additional in-depth discussions about the expansion of export support, views have been included in this report (7 meetings)

Throughout this report, findings from the online survey, written responses sent via email, and meeting notes have been summarised together under the title free-text responses. In some instances, the same organisation submitted both a written response and attended a meeting. To avoid double counting, these responses were combined into one response which has been included in the analysis.

4.2 Analysis 

Results from the three data collection methods listed above were analysed together to produce total responses for the call for evidence. One dataset which included all results was created and then analysed.

The online survey contained a combination of ‘closed’ tick-box questions (where respondents could select from pre-determined choices) and ‘open-ended’ questions (where respondents could enter any text). Sometimes the answers provided in meetings or written responses gave a descriptive, qualitative response rather than a ‘closed box’ answer. In these instances, researchers recoded responses to the correct quantitative answer.

Responses to ‘open-ended’ questions were analysed thematically. This included coding the data, developing emerging themes, and then categorising these into overarching themes. The thematic analysis was quality assured by social researchers at the DBT.

To reduce the risk of sharing disclosive data, where fewer than five responses were received, they are reported as ‘fewer than 5’ and their percentages are reported as ‘not applicable’.

4.3 Generalisability

The results only represent the views of those who responded to the call for evidence. The number of responses to each question varies throughout the report and in some cases response rates are particularly small, for example, the number of responses to questions about the most prevalent barriers to exporting for businesses in Wales and Northern Ireland. Note that where this report refers to views of respondents this cannot be taken to be representative of the views of the wider business or business stakeholder population.  

4.4 Location of respondent

Table 1 below shows the geographical spread of respondents who answered the call for evidence via the online survey, written responses sent via email and in meetings with DBT.

In the survey we asked: where are you based?

• Scotland
• Wales
• Northern Ireland

Responding to each question was voluntary, and the respondent did not need to answer every question to move on to the next. This means that the total number of responses for each question differs, and it is not possible to provide a total number of ‘completed responses’. In response to the online survey, a large number of respondents only answered this first question about where they or their organisation is located.

Table 1: location of respondents (n=189)

Nation	Count
Northern Ireland	50
Scotland	111
Wales	26
All nations*	Fewer than 5
Total	189

*By ‘All nations’, we mean those who submitted a response on behalf of Northern Ireland, Scotland, and Wales because their organisation operates in all three. In most cases, these respondents provided specific answers for Northern Ireland, Scotland, and Wales, so responses have been counted separately. However, where a general response was provided, responses have been summarised separately in tables under the category ‘All nations’.

5. Findings 

The following section provides a summary of responses to each question asked in the call for evidence. Responses to closed-text questions have been summarised separately for each nation, whereas responses to the open-text questions are usually summarised together due to consistency of responses and themes across the Nations.

5.1 Deployment Model

We asked: “International Trade Advisors in England are deployed regionally in a variety of ways: some hold a specific geographic remit for a local area, others are focused on working with a business sector(s) and some perform a hybrid role with both a geographic and sectoral focus.

Which model do you believe is best placed to ensure there is full sectoral and geographical spread?

• sectoral Approach – ITAs are sector specialists
• regional Approach – ITAs are based and support specific geographical areas working across all sectors
• hybrid approach – Provides a combination of a sectoral and regional approach depending on strengths of local region
• other

Follow-up: please explain why you answered the previous question as you did? (open-text)”

Table 2: deployment model preference in Northern Ireland (n=22)

Approach	Count	%
Sectoral Approach	7*	32
Regional Approach	Fewer than 5	Not applicable
Hybrid Approach	11	50
Other	Fewer than 5	Not applicable
Total	22	100

Table 3: deployment model preference in Scotland (n=55)

Approach	Count	%
Sectoral Approach	11	20
Regional Approach	9	16
Hybrid Approach	29	53
Other	6	11
Total	55	100

Table 4: deployment model preference in Wales (n=16)

Approach	Count	%
Sectoral Approach	Fewer than 5	Not applicable
Regional Approach	Fewer than 5	Not applicable
Hybrid Approach	10	63
Other	0	0
Total	16	100

There were 93 total responses to this question across all nations. A hybrid approach was most popular across all three nations: 11 (50%) of 22 responses in Northern Ireland, 29 (53%) of 55 responses in Scotland, and 10 (63%) of 16 responses in Wales.

*One response provided by a business organisation based in Northern Ireland was given in a verbal meeting. This response expressed a preference for a ‘sectoral focus’ when thinking about export support in general, although it did not provide a specific response to this question. For this reason, that response has not been included within the table above.

Summary of free-text responses

Responses to this question generally provided a rationale for the respondent’s choice. Key themes across Northern Ireland, Scotland, and Wales were broadly similar. For this reason, responses have been summarised together.  

Support for a hybrid approach

As shown in Tables 2 to 4 above, across all three nations a hybrid approach providing a sectoral and regional approach was the most popular option. Respondents generally felt that a hybrid approach would be most likely to deliver successful outcomes to businesses for several reasons:

• a hybrid approach would allow more flexibility in how ITAs provide support to businesses, as they could tailor support to specific businesses’ needs and provide a consistent stream of support to address a range of barriers
• it would be the most cost and resource effective approach
• it would harness existing connections that businesses and ITAs have both domestically and internationally
• it would help prevent individual businesses or regions from being overlooked and removes the risk of some regions or sectors being over prioritised

In stakeholder meetings with the DBT, representatives from business associations based in Scotland who supported a hybrid model highlighted the importance of having ITAs based in rural areas. They also noted that criteria for support should be flexible in remote or island areas where businesses have limited access to domestic markets.
“Businesses vary in terms of their sector, size, and international trade needs. A hybrid approach allows ITAs to tailor their support to the individual requirements of businesses. This ensures that businesses receive customised guidance and assistance, which is often vital for their success in international trade.” Non-Governmental Organisation, All Nations

Support for a sectoral approach

As shown in Tables 2 to 4 above, this was the second most popular response in Northern Ireland and Scotland, and joint second in Wales. Respondents who favour this model for ITA deployment believe that it would provide the most useful, effective support for businesses. A strong view, which was consistent across the three nations, was that sector specific knowledge is more useful for businesses than general knowledge about how to export.

In a written response submitted to DBT, a business association in Scotland highlighted a separate point; that using ITAs who are sector specialists would reduce the burden on ITAs to upskill in ‘historical and contemporary issues facing the industry’ (see full quote below). Finally, a small number of respondents in Northern Ireland also thought that sector specific ITAs would be able to promote networking and collaboration between businesses in specific sectors.

“This therefore means that a degree of sector specific expertise is required to ensure smaller members can continue to benefit from specialised advisors across government and industry as opposed to spending time and resources informing regional or hybrid organised ITAs of the historical and contemporary issues facing the industry. Having sector specialist ITAs would ensure that this process is limited owing to the prerequisite knowledge and experience demanded of ITAs by the industry they are tasked with assisting.” Business Association, Scotland

Support for a regional approach

In Scotland and Northern Ireland, a regional approach was the least common answer. The small number of respondents who chose this believe that having regionally focused ITAs would provide localised support, focusing on regional needs and opportunities, such as shown in the quote provided by a business association below. These respondents argued that local knowledge could aid business learning and facilitate closer relationships with their ITAs.

Respondents in Northern Ireland and Scotland also described several other advantages of having regional focused ITAs.

• it would allow the general and regional needs of businesses, which are not sector specific, to be addressed
• it would ensure support is available in all regions and that some sectors are not over prioritised by ITAs in comparison with others
• it would not duplicate the sector specific support that’s already available (for example by Scottish Development International)
• in Scotland, a regional approach would align well with the sector support offered by the Scottish development agencies already and by building relationships and aligning with development agency staff, ITAs could increase their use and have greater impact

“The small businesses in the UK’s nations and regions are extremely diverse, with complex and diverse ecosystems from coastal communities to cities. The support delivered by ITAs should reflect the strengths and needs of local businesses, whether that is boosting exports in an area where international trade is particularly low, or providing expertise for a sector that is particularly linked to a nation’s heritage or culture.” Business Association, All Nations

5.2 Grouping approach

We asked: “It is possible to create a group or cohort of businesses, for example within related sectors or at a similar stage of growth. This group could have common objectives in targeting particular overseas markets. Grouping these businesses into a cohort and working through a programme of support would allow focused support and the opportunity for the businesses to learn from each other.

To what degree do you think using a grouping approach would be beneficial to target overseas markets?

• very beneficial
• somewhat beneficial
• not beneficial
• don’t know

Please explain why you answered the previous question as you did? (open-text)”

Table 5: Benefits of grouping businesses, Northern Ireland (n=19)

Benefits of grouping	Count	%
Very beneficial	12	63
Somewhat beneficial	Fewer than 5	Not applicable
Not beneficial	Fewer than 5	Not applicable
Don’t know	0	0
Total	19	100

Table 6: Benefits of grouping businesses, Scotland (n=53)

Benefits of grouping	Count	%
Very beneficial	23	43
Somewhat beneficial	25	47
Not beneficial	5	9
Don’t know	0	0
Total	53	100

Table 7: Benefits of grouping businesses, Wales (n=13)

Benefits of grouping	Count	%
Very beneficial	7	54
Somewhat beneficial	6	46
Not beneficial	0	0
Don’t know	0	0
Total	13	100

Table 8: Benefits of grouping businesses, All Nations* (n= fewer than 5)

Benefits of grouping	Count	%
Very beneficial	Fewer than 5	Not applicable
Somewhat beneficial	Fewer than 5	Not applicable
Not beneficial	0	0
Don’t know	0	0
Total	Fewer than 5	100

*All Nations includes respondents who answered on behalf of Northern Ireland, Scotland, and Wales in one response, and gave an answer that was general rather than specific to each nation.

There were 87 total responses to this question. As shown in Tables 5 to 8 above, grouping businesses into cohorts was seen as beneficial by the vast majority of respondents. In Wales no respondents said that grouping is not beneficial, whereas in Northern Ireland (fewer than 5) and in Scotland 9% of respondents chose this option.

Summary of free-text responses

As shown in Tables 5 to 8 above, the majority of respondents believed that grouping businesses together for group support is a good idea. Free-text responses provided detail on how respondents see this working. Key themes across Northern Ireland, Scotland, and Wales were broadly similar, so written responses have been summarised together.

Benefits of providing group support

Respondents shared their views on why grouping businesses is beneficial. The key benefits of grouping listed were consistent across all nations. These were:

• collaboration and peer-to-peer learning through sharing experiences and learning from other businesses, as shown in the quote from an individual business below. This was seen as a key benefit, especially given the often-limited resources that SMEs have to navigate complex trade processes
• networking opportunities, described by some respondents as a potential outcome of groups as partnership working between members could be established
• cost savings through sharing best practice with other businesses. Respondents felt that grouping could reduce the burden on an individual business, particularly those with limited resources and/or experience of international trade. Some respondents thought grouping can even be an opportunity to pool resources and reduce costs, for example market research expenses

“We would find this hugely beneficial to work with others going through the same process and in particularly helpful if it is alongside similar sectors. Share best practice and a feeling of being supported in the export journey”. Individual Business, Northern Ireland

Ways to group businesses (export stage vs. sector)

Respondents shared their views on the best ways to group businesses to ensure that the approach is successful. Two key and competing views emerged: grouping by export stage vs. grouping by business sector. Many respondents, and particularly those from business associations and non-governmental organisations, believe that grouping by export stage is essential. This is because the differing levels of support required for a) new to export businesses who need intensive guidance and b) those who have prior experience of exporting, who may need specific market/sector support, would be too difficult to manage within one group. Several respondents believe that having a group which includes businesses who are at different stages would make the group too diverse to deliver targeted support. For example:

“Unless all businesses are at complete rookie stage, you will quickly find disparity eg business X is live in country A, at the research stage in country B and country C is on the two-year horizon. By contrast Business B is at the research stage in 4 different countries, so there will be some mutual interest but there will be more time wasted.” Individual Business, Scotland

Responses that argued for grouping based on business sector were most common among those representing the views of an individual business. They explained that this would ensure businesses receive the necessary specialist expertise required, and many discussed how ‘generalist support’ would not be useful.

“Must be sector based in Scotland. Far better to have a specialist than a generalist approach. The basics of export can be applied across all sectors as part of a ‘step 1’ introduction” Individual Business, Scotland

Overall, respondents felt that the best approach would be to group businesses who are at the same stage of their exporting journey and in the same sector. This was strongly endorsed by business associations in particular. However, respondents were aware that this would be challenging, given the proportion of businesses within each nation who would be eligible and willing to take part.

“Bringing together cohorts of early-stage companies would be welcomed. Using a grouping approach to targeting overseas markets would be very beneficial in rural areas. There is an opportunity to identify a cohort approach themed around our key sectors e.g., food and drink, textiles, and energy.” Public Sector Body, Scotland

Risks of providing group support: competition among members

Whilst respondents were generally supportive of a grouping approach, many were realistic about the challenges which would need to be addressed for it to work effectively. The key risk highlighted was managing competition amongst group members. Respondents believe there is a danger that businesses operating within the same sector or market, with similar products or services, may not want to collaborate with others and will be wary of competitors. This could lead to a lack of openness, reduced participation and difficult relationships within a group. It’s likely that competing businesses may not want to share information with each other, which would undermine the purpose of the grouping approach. 

Other risks highlighted (but less frequently than ‘competition’) were:

• individual business voices may get drowned out
• the view that grouping hasn’t worked before in Scotland
• getting enough businesses to join groups may be difficult

5.3 ITA Operational Approach: Northern Ireland

We asked: “Thinking specifically about how ITA support should be prioritised in Northern Ireland, please specify your preferred approach:

• support aimed at specific sectors
• support focused on market based opportunities
• support depending on exporting experience
• other

Please explain why you answered the previous question as you did? (open-text)”

Table 9: ITA operational approach in Northern Ireland (n=26)

Approach	Count	%
Support aimed at specific sectors	11	42
Support focused on market based opportunities	7	27
Support depending on exporting experience	5	19
Other	Fewer than 5	Not applicable
Total	26	100

As shown in Table 9 above, aligning ITA support to specific sectors was the most popular answer, with 11 respondents choosing this option (42%). ITAs providing support focused on market-based opportunities and depending on exporting experience had a similar level of support, with 7 (27%) and 5 (19%) responses respectively.

Summary of choices from free-text responses

Respondents comments explained their choice. Some respondents also provided an explanation of why a hybrid approach combining all three prioritisation approaches would be the most effective way to prioritise ITA support.

Support for sector focused support

The key reasons given by those who support a sector focused approach were:

• the belief that some industries require more intensive support, either because they don’t get enough support currently, for example the creative industry, or because it is more difficult for certain sectors to begin or expand exporting
• a sector focus would provide a wider range in its approach to providing support, which would be more impactful for businesses
• because Northern Ireland is known and respected for success in cluster sectors, e.g. materials handling and engineering, targeting at new growth areas could lead to new opportunities

Support for focusing ITA support on market-based opportunities

Of the respondents who supported aligning ITA support to market-based opportunities, the main reasons were because it would help to explore and exploit market opportunities that businesses otherwise may have missed.

Among written responses, business associations and public sector bodies discussed the value of the current DBT offer which provides ‘global reach’, as DBT have staff working on the ground in many countries. This respondent believes that the ITA approach in Northern Ireland should act as an extension of this approach and harness the global network that DBT has to offer.  

Support for aligning ITA support to exporting experience

Of respondents who believe that aligning ITA support to exporting experience would be the most beneficial, the key reason given was the importance of tailoring ITA support to businesses to provide the right level of support, e.g. the fundamentals of getting started for new to export businesses.

Support for a hybrid approach

Those who selected ‘other’ tended to support a hybrid approach which would combine all three prioritisation approaches. Some respondents commented that a hybrid approach would be beneficial as it would allow a focus on sectors where Northern Ireland has a strong reputation worldwide, whilst also driving up the number of small and medium enterprise (SME) exporters by focusing on encouraging them to begin trading overseas. 

5.4 ITA Operational Approach: Scotland

We asked: “Thinking specifically about how ITAs should be deployed in Scotland, please specify your preferred approach:

• aligning with city region and growth deals
• mapping to Highlands and Islands Enterprise, South of Scotland Enterprise and Scottish Enterprise areas
• mapping to Regional Economic Partnerships
• other

Follow-up: please explain why you answered the previous question as you did? (open-text)”

Table 10: ITA operational approach in Scotland (n=64)

Approach	Count	%
Aligning with City Region and Growth Deals	12	19
Mapping to Highlands and Islands Enterprise, South of Scotland Enterprise and Scottish Enterprise areas	23	36
Mapping to Regional Economic Partnerships	14	22
Other	15	23
Total	64	100

A total of 64 respondents in Scotland answered this question through either the online survey, written response or in a verbal meeting with DBT, as shown in Table 10 above. The most popular answer was ‘Mapping to Highlands and Islands Enterprise, South of Scotland Enterprise and Scottish Enterprise areas’ which made up 36% of the total responses.

Summary of choices from free-text responses:

Most respondents based in Scotland provided feedback about why they supported a certain prioritisation approach, which is provided below.

Mapping to Highlands and Islands Enterprise, South of Scotland Enterprise and Scottish Enterprise areas

Key reasons for supporting this approach were:

• as the Highlands and Islands Enterprise, South of Scotland Enterprise, and Scottish Enterprise areas are key development agencies in Scotland, respondents felt that ITA alignment would lead to the best outcomes for businesses
• this approach would complement existing support and ensure businesses can access support in the simplest, most convenient way. Some respondents thought it would ensure businesses can benefit from ITA support without “having to navigate a secondary or tertiary stakeholder relationship” by aligning support to what exists already
• respondents believed that aligning ITAs to the Scottish development agencies (Highlands and Islands Enterprise and South of Scotland Enterprise) would provide the best geographical coverage. This is because they have the same or similar boundaries as their related Regional Economic Partnerships and some of the city region and growth deals and have offices across Scotland

Explanation of Mapping to Regional Economic Partnerships

Several respondents who chose this answer believed that regional support is critical to achieving exporting success and thought it would be best provided through alignment with the Regional Economic Partnerships. A small number of responses stated it would allow for greater collaboration between public sector organisations and businesses.

Explanation of Aligning with City Region and Growth Deals

This was the least common response as shown in Table 10 above. Those who gave this answer said that it would allow ITAs to provide more focused, specialised support to exporters in specific areas than if ITAs were aligned to regions, through a better understanding of the current and potential exporters in the areas. These respondents generally felt that a local area focus would be beneficial and broader regional areas e.g. ‘Highlands and Islands’ are not specific enough.

A small number of responses from public sector bodies noted that the Scottish regions would be covered through this approach, whilst ensuring that areas with larger needs (the cities) get an adequate level of support. Another public sector body noted that it would align with the support already being provided through the Tay Cities Trade and Investment Partnership.

Support for other operating model approaches

Some respondents thought that it would be best if ITAs in Scotland were prioritised in ways not provided as an option in the survey. Several respondents believed that a hybrid approach which encompasses alignment to all local/regional breakdowns and sectoral specific support, would be best.

Business associations based in Scotland from the food and drink sector thought that additional support for food and drink would be useful.

“We welcome the prospect of additional support for exporting food and drink from Scotland. This should ideally complement existing sources of business support and wider work by ourselves and partners in this area. We believe a tailored approach that flexibly adapts to the individual requirements of each business/group of businesses is likely to be most conducive to effective export support.” Business Association, Scotland

5.5 ITA Operational Approach: Wales

We asked: “Thinking specifically about how ITA support should be prioritised in Wales, please specify your preferred approach:

• support dedicated to specific sectors (please specify below)
• support dedicated to specific regions of Wales, (if not the three-region model in the document, please recommend a model in the open text box below)
• Support focused on particular overseas markets (please specify below)
• other”

Table 11: ITA operational approach in Wales (n=19)

Approach	Count	%
Support dedicated to specific sectors	7	37
Support dedicated to specific regions of Wales	6	32
Support focused on particular overseas markets	Fewer than 5	Not applicable
Other	5	26
Total	19	100

As shown in Table 11 above, the most common answer provided amongst all respondents was ‘support dedicated to specific sectors’, which was chosen by 7 (37%) respondents. This was closely followed by ‘support dedicated to specific regions of Wales’ which was selected by 6 (32%) respondents to this question. Please note that these results should be interpreted with caution due to the small response rates.

Summary of choices from free-text responses

Respondents in Wales provided limited comments about why those chose their answer. For instance, ‘aligning support focused on particular overseas markets’ did not receive any written feedback.

Support dedicated to specific sectors

Those who chose this answer did not provide a detailed response explaining their choice. Instead, a small number of respondents gave examples of sectors that they believe should be a priority. These were: robotics and artificial intelligence, the pharmaceutical and life sciences industries, the aerospace industry, and semiconductors/advanced materials.

Support dedicated to regions of Wales

Again, written explanations of this question were limited. Some respondents to the online survey discussed the importance of regional ITAs having a strong grasp of local landscapes. Some respondents argued that a regional approach would complement the Welsh Government’s approach to regional economic development. They also thought that a sector-based approach would risk excluding certain geographical areas.

Support for a hybrid (sectoral and regional) prioritisation approach

Respondents who selected ‘other’ generally stated a preference for a hybrid approach, which takes regional and local contexts into account. Business association’s written responses recommended that the deployment model take an approach that is part regional and part sectoral. This was seen as essential due to the unique landscape of Wales, where much of the nation is categorised by rural and sparsely populated areas. They recommended a strategic concentration of ITAs in major cities, whilst complimenting this by focusing on specific sectors already supported by the Welsh Government, for example, food and drink, high-value manufacturing, fintech, medtech and green technologies.

5.6 Duration of support

We asked: “ITAs can offer one-to-one support to small/medium sized enterprises with high potential to export to begin exporting for the first time, grow exports or expand to new markets. In your opinion, how long should one to one support last for?

Follow-up: what should be the criteria for ending support?”

Summary of free-text responses

Responses have been summarised together as key themes were consistent across all nations, these were:

Duration should be flexible and defined by business need.

Respondents generally struggled to provide a time period for ITA support and where they did, there was significant variation across all three nations (4 weeks – over 5 years). Instead, respondents agreed that the duration of support should be flexible and decided with active input from the business, depending on their needs. Respondents believed that there should not be a ‘one-size fits all’ approach and instead support length should be assessed on a case-by-case basis, depending on a range of factors including:

• export experience of the business
• export development stage: a general view was that for those new to exporting, intensive support for a longer period is needed
• export potential
• the export objectives of the business

This was a strong view among responses from business associations. They stated that flexibility in the duration and style of support is essential, and should be achieved by providing support that is:

• business-centric: As above, those newer to exporting may require comprehensive support for an extended period. Whereas those with prior experience or specific market/industry knowledge may require support for a shorter duration
• continuous: This is seen as essential, as international trade is not a linear journey – businesses will experience new barriers at different stages
• offering tailored solutions: The business association’s view is that by allowing businesses to define their specific needs and objectives to the ITA and offering tailored and flexible support to meet those businesses will be effectively supported
• fostering business independence: Encouraging the business to take ownership of their export journey is ‘essential’

A key point raised via written responses and during meetings with DBT was that there needs to be a clear pathway of support and where businesses should go next, so there isn’t a ‘cliff edge’ end for support. Representatives felt that around a two-year duration of support from an ITA is reasonable and should focus on helping businesses to develop the skills they need to export independently.

“In conclusion, adopting a business-centric, flexible and continually supportive approach, where businesses have the autonomy to determine the length of one-to-one support, is a strategic choice. This ensures that SMEs receive the support they require while fostering their independence and adaptability in the complex world of international trade.” Non-Governmental Organisation, All Nations

Criteria for ending support

In response to the question ‘what should be the criteria for ending support?’, a common view across was that the decision should be made with or by the business, rather than being made by the ITA alone. Respondents felt that support should only end once the business no longer finds it valuable, e.g. because they have reached their export goals, and that an ITA should support the business for ‘as long as it takes’ to achieve desired outcomes. Several respondents across all nations gave examples of export goals that would warrant support ending. These included a mixture of export sales, and knowledge/confidence building:

• until a business is confidently exporting
• when the business can export independently (and export support is no longer required)
• when they have independent capacity to reach a certain amount of export sales
• when they have gained knowledge, a network, and confidence to grow exports
• some respondents provided practical suggestions to ensure that an ITA is not providing resource to a business that is not likely to grow through exporting. These included low engagement from the business leading to the ITA service ceasing

Responses from business associations and public sector bodies illustrated the cyclical nature of the exporting support journey: businesses initially require intensive support to begin exporting, which then subsides. Then, when the business is looking to expand to new markets or increase exporting behaviour, they would likely require intensive support again. This would benefit from a sustained relationship between an individual business and an ITA, and they felt that having a hard cut-off for export support would not be useful.

“Ongoing but should depend on size of business and potential impact in terms of FTE jobs and Export Revenue. But practically could be stopped by Incompetence and poor discipline of the business management team.” Business Association, Wales

Requirements for support to continue

Although respondents struggled to provide a conclusive time period for support from an ITA, they did provide some practical suggestions to ensure that an ITA is not providing resource to a business who is not likely to grow through exporting. These are:

• several respondents from Scotland believed that export planning from the outset is required. ITAs should work with the business to agree export goals and key milestones. A business association in Scotland suggested setting key KPIs for export value and volume, which an ITA can use to assess performance and determine whether support should continue
• poor export or growth potential: This was seen as a scenario that would warrant an ITA ending support to a business prematurely (before objectives have been achieved).
• low engagement from the business

5.7 Barriers to exporting

We asked: “In your opinion, what are the key barriers to exporting that International Trade Advisors should focus on in Scotland, Wales and Northern Ireland?:

• cost
• capability
• knowledge
• contacts
• risk
• connectivity
• other (open-text box)

Follow up: please explain why you answered the previous question as you did? (open-text)”

Respondents could choose multiple barriers.

A total of 81 unique respondents answered this question. Two respondents answered this question on behalf of all nations and provided specific barriers for each nation. So, their responses are captured within each nation respectively in Table 12 to 14 below.

Table 12: Proportion of respondents who selected each barrier in Northern Ireland (n=20)

Barrier	%
Cost	55
Capability	40
Knowledge	80
Contacts	85
Risk	50
Connectivity	15
Other	10

Table 13: Proportion of respondents who selected each barrier in Scotland (n=50)

Barrier	%
Cost	58
Capability	56
Knowledge	74
Contacts	64
Risk	26
Connectivity	28
Other	20

Table 14: Proportion of respondents who selected each barrier in Wales (n=14)

Barrier	%
Cost	64
Capability	50
Knowledge	71
Contacts	71
Risk	50
Connectivity	36
Other	29

The percentage of respondents who listed each barrier has been presented in table 12 to 14 above. The barriers that were mentioned most frequently across the three nations were knowledge and contacts:

• of the 20 respondents based in Northern Ireland, 85% said contacts is a key barrier for businesses and 80% said knowledge.
• of the 50 respondents based in Scotland, 74% said knowledge is a priority barrier, followed by contacts which was listed by 64% of respondents.
• of the 14 respondents base in Wales, 71% listed knowledge and 71% listed contacts.

However, these results should be interpreted with caution due to the small number of responses in Northern Ireland, and Wales.

Summary of free-text responses

Responses have been summarised together as key themes were consistent across all nations, these were:

All barriers are important

Several respondents from a range of organisations discussed how each of the exporting barriers listed are significant in their own way. This is because businesses face a range of challenges throughout their exporting journey and will need support to address each of those in turn.

Business associations across all nations, but particularly those based in Scotland, discussed how all barriers are relevant depending on many factors including:

• the stage that the company is at on their export journey
• the individual businesses’ experience, sector, location, target markets and resources

“The barriers to exporting will vary depending at what stage the company is on in their export journey. All of the barriers above are important for ITAs to focus on. Some can be addressed by providing training, strategic advice, contacts, information, trade advice and technical advice (for example, to address the complexity of paperwork).” Public Sector Body, Scotland

Description of most important barriers to address

Written responses mirrored the finding that knowledge and access to contacts were most reported as priorities for export support to focus on:

• knowledge: Several respondents see knowledge as the key barrier to support businesses with initially, particularly those who are newer to exporting, as it provides the stepping-stone for businesses to begin thinking about exporting.
• contacts: Some respondents in Wales and Scotland discussed how establishing contacts and connections is often challenging. They also raised the issue of connectivity in rural areas where transport is limited
• cost:  respondents shared that individual businesses are concerned about costs and how profits will be affected

A small number of respondents are concerned that ITAs could exacerbate some of these barriers if their remit is not made clear from the start. This will be discussed in more detail in the ‘General Feedback’ section.

Other barriers

Scottish business associations also highlighted other barriers which they believed are salient, these are:

• tariff and non-tariff barriers: Some respondents believe that these are equally as important as the survey options for this question
• EU green deal which may affect Scottish business in addressing the carbon border adjustment mechanism

5.8 General feedback

This section summarises the key overarching themes from all responses. However, the majority of general feedback is taken from in-depth written responses or stakeholder engagement meetings.

Positive views on the ITA expansion

The majority of organisations that provided in-depth feedback were positive about DBT’s proposal to expand the ITA service to the Nations. In particular, several public sector bodies and business associations stated that they appreciated the opportunity to feedback on the roll-out of the service, which will provide an opportunity to provide additional support to businesses, particularly if it is complementary to the existing export support available in the Nations. Several businesses also stated that they would appreciate additional export support, in particular within priority sectors in the Nations, for example, high value manufacturing in Wales.

“International Trade Advisors (ITAs) would be a fantastic additional resource available to Scottish businesses” Business Association, Scotland

“The proposal by DBT to focus new trade resource on businesses with exporting potential, but not currently identified within SG’s A Trading Nation (ATN) segments i.e. predominantly those new to exporting or with potential to increase their market reach, is really welcomed by [public sector body] and we would look to encourage and provide support to DBT.” Public Sector Body, Scotland

The ITA service roll-out should complement existing export support

This was a common thread across all nations and respondent type. Respondents felt strongly that the expansion of this service to the Nations should enhance existing support, rather than duplicating what’s already available. Whilst the majority of respondents were generally positive about DBT’s proposal to expand export support to the Nations, they felt that it requires careful management to ensure support is complementary. If not, several respondents used to believe that duplicating support could confuse businesses about where to access the help that they need, and even exacerbate business barriers to trade.

Representatives from businesses organisations based in Scotland and Wales highlighted the need for the offer for businesses, that is, what sits with DBT and what sits with Scotland Development International, to be clear. Some respondents flagged the need for a clear pathway for support with ‘one front door’ for businesses to avoid confusion. They believed that this should be complemented with clear messaging and a marketing push to flag the enhanced service offer.

“The key concern at the heart of the ITA programme is how their work fits into the already diverse and established network of export-focussed advisory and facilitation bodies in Scotland.” Business Association, Scotland

The importance of collaboration

Whilst ensuring support is complementary to existing export support is a key challenge, the majority of respondents agreed that collaboration between the UK government and export support providers in Northern Ireland, Scotland, and Wales is essential. Business organisations in particular were keen to have open channels of communication with DBT, and to feed directly into planning for the ITA roll-out.

In Northern Ireland, responses highlighted several key organisations who DBT should engage with throughout this process, for example, Northern Ireland’s Export Forum, CBI Northern Ireland, InterTradeIreland, and key business associations and public sector bodies.

In Scotland, it was suggested that key partners that DBT should consult with are the Scottish Government itself, Scottish Development International and the Scottish Chambers of Commerce, as well as key business associations.

Responses from Wales pointed to the importance of collaboration with the Welsh Government, Business Wales, Local Authorities, and Trade & Invest Wales to ensure support enhances the existing offer. In stakeholder meetings representatives from Welsh organisations recommended a renewed engagement across Wales on the support provided to businesses and how it works alongside the support offered by the Welsh Government, regional deals and local authorities.

Freeports (Scotland only)

A theme specific to Scotland, which was mostly discussed in responses from business associations and public sector bodies, was the allocation of Green Freeports in Scotland. Respondents believe that these should be factored into the export support framework, as many businesses will be based within the Green Freeport areas and will require support in customs, excise, VAT reliefs and benefits, and ESG Net Zero reporting, before exporting. In terms of how to deliver this support, business associations agreed that delivering freeport advice within a hybrid deployment model for ITAs is the best fit.
“In view of the freeports implementations, I think the most advantageous approach would be option three above the hybrid approach, bringing to the businesses, technical freeport support, Customs, Excise and VAT technical support and in terms of the higher level support (all government funding, that is, £10million seed funding for each freeport) ESG reporting framework (Environment, Social and Governance) will be required in support of the green ports as they have been referred to in Scotland” Business Association, Scotland

6. Annex

6.1 Engagement questions

Question 1

Where are you based?

• Scotland
• Wales
• Northern Ireland

Question 1 A – Scotland only

Thinking specifically about how ITAs should be deployed in Scotland, please specify your preferred approach:

• aligning with City Region and Growth Deals
• mapping to Highlands and Islands Enterprise, South of Scotland Enterprise and Scottish Enterprise areas
• mapping to Regional Economic Partnerships
• other

Follow-up: please explain why you answered the previous question as you did? (open-text)

Question 1 B - Wales only

Thinking specifically about how ITA support should be prioritised in Wales, please specify your preferred approach:

• support dedicated to specific sectors (please specify below)
• support dedicated to specific regions of Wales, (if not the three region model in the document, please recommend a model in the open text box below)
• support focused on particular overseas markets (please specify below)
• other

Question 1 C - Northern Ireland only

Thinking specifically about how ITA support should be prioritised in Northern Ireland, please specify your preferred approach:

• support aimed at specific sectors
• support focused on market based opportunities
• support depending on exporting experience
• other

Please explain why you answered the previous question as you did? (open-text)

6.2 Question 2 - all

It is possible to create a group or cohort of businesses, for example within related sectors or at a similar stage of growth. This group could have common objectives in targeting particular overseas markets. Grouping these businesses into a cohort and working through a programme of support would allow focused support and the opportunity for the businesses to learn from each other.

To what degree do you think using a grouping approach would be beneficial to target overseas markets?

• very beneficial
• somewhat beneficial
• not beneficial
• don’t know

Please explain why you answered the previous question as you did? (open-text)

6.3 Question 3 - all

International Trade Advisors in England are deployed regionally in a variety of ways: some hold a specific geographic remit for a local area, others are focused on working with a business sectors and some perform a hybrid role with both a geographic and sectoral focus.

Which Model do you believe, is best placed to ensure there is full sectoral and geographical spread?

• sectoral approach - ITAs are sector specialists
• regional approach - ITAs are based and support specific geographical areas working across all sectors
• hybrid approach - Provides a combination of a sectoral and regional approach depending on strengths of local region
• other

Follow-up: please explain why you answered the previous question as you did? (open-text)

6.4 Question 4 - all

ITAs can offer one-to-one support to small/medium sized enterprises with high potential to export to begin exporting for the first time, grow exports or expand to new markets. In your opinion, how long should one to one support last for?

Follow-up: what should be the criteria for ending support?

6.5 Question 5 - all

In your opinion, what are the key barriers to exporting that International Trade Advisors should focus on in Scotland, Wales and Northern Ireland?

• cost
• capability
• knowledge
• contacts
• risk
• connectivity
• other (open-text box)

Follow up: please explain why you answered the previous question as you did? (open-text)

6.6 Question 6 - all

How are you responding to this call for evidence?

• an individual – you are responding with your personal views, rather than as an official representative of a business, business association or other organisation
• non-governmental organisation – in an official capacity as the representative of a non-governmental organisation, trade union, academic institution or other organisation
• public sector body – in an official capacity as a representative of a devolved administration, local government organisation, public service provider, other public sector body in the UK or elsewhere
• business – in an official capacity with the views of an individual business
• business association – in an official capacity representing the views of a business organisation

6.7 Respondent type

We wanted to gather responses from a range of stakeholders who would have useful insights on this matter. To capture the range of views across organisations, we asked those answering the online survey to select which of the following best describes how they are responding to the survey. Note that the text in bold is how each of these categories will be described within this report: 

• an individual responding with personal views, rather than as an official representative of a business, business association, other organisation
• an individual business in an official capacity with the views of an individual business
• public sector body, in an official capacity as a representative of a devolved administration, local government organisation, public service provider, other public sector body in the UK or elsewhere
• business association, in an official capacity representing the views of a business organisation
• non-governmental organisation, in an official capacity as the representative of a non-governmental organisation, trade union, academic institution or other organisation

6.8 Total consultation responses   

88 respondents (70 respondents through the online survey and 18 through a written response or a meeting) answered, ‘how are you responding to this call for evidence?’. As shown below, those responding on behalf of an individual business (32) was the most common, followed by those responding as a representative of a public sector body (19).

Table 15: Responses to ‘how are you responding to this call for evidence?’ (n=88)

Respondent	Count
An individual responding with personal views	18
Individual business	32
Public sector body	18
Business association	14
Non-governmental organisation	6
Total	88