Poor language skills weakens export growth, say BCC

A British Chambers of Commerce (BCC) survey of 1,000 exporters has revealed that poor language skills and a lack of cultural understanding of overseas markets are stunting UK growth.

The survey found that 31% of companies place the least value on languages whilst 25% place the highest value on these skills within their business.

Releasing the second part of a two-part research programme, sponsored by the Learning & Skills Council, looking at the attitudes to and quality of foreign language ability in British exporters, the BCC has found that the UK's export businesses could be missing-out on valuable opportunities because of poor language skills.

President of the BCC, Isabella Moore, said: "I am worried about what these findings mean for exporters seeking to strengthen their business. Although language skills are just one ingredient to the success of an exporter, there is clearly much room for improvement. Language skills must be placed higher-up the agenda as the majority of exporters do not speak foreign languages competently, have no formal strategy to capitalise on overseas markets and risk losing business as a result."

The survey shows a connection between the value an exporter places on language skills within their business and their annual turnover - the greater value placed on language skills, the greater the annual turnover. Only 33% of firms who place the least value on language skills have an annual export turnover above £500,000, whilst 77% of firms who place the highest value on language skills have an annual export turnover above that mark.

Export sales at firms who place the least value on language skills are declining by an average of £50,000 a year, while firms who place the highest value on language skills are on average enjoying growth of £290,000 a year.

Many exporters fail to adapt and localise their company's offering to individual foreign markets, communicating only in English. Though half of exporters have a foreign language qualification, four out of five do not have the competence to conduct business in a foreign language.

The survey revealed that 63% of exporters have no strategy to develop language skills and 77% admit to having lost export sales over the past two years.

(SP)