Current Resources and Support Available to Small and Medium-sized Enterprises in the United Kingdom - Coursework Example

Current Resources and Support Available To SMEs In the UK to Support Them Overcome Linguistic and Cultural Barriers Table of Contents Introduction 3 Critical Analysis of Current Resources and Support Available To SMEs In the UK to Support Them Overcome Linguistic and Cultural Barriers 4 Key Recommendations 8 Conclusion 10 References 11 Introduction Small and medium sized enterprises (SMEs) occupy a major position in the economic development of the United Kingdom. SMEs in the UK are considered as the prominent source of innovation and entrepreneurship. SMEs in the UK are well placed in terms of export. SMEs in the UK have the advantage of the British brand while at the same time, these SMEs are imposed with the challenges pertaining to language skills as English as a ‘lingua franca’ cannot help to a certain extent in building international trading relationships. Evidently, it has been observed that language acts as a barrier for SMEs in the UK in exporting to other countries such as Russia and China. SMEs have currently recognised language skills and cultural awareness as critically important for achieving success in the international trade. Furthermore, it has been reported that language prevents SMEs from developing exporting market. It has been widely proclaimed that absence as well as acquisition of language skills has tremendous commercial and financial impacts. It has been further observed the SMEs in the UK have generally low language skills (House of Lords, 2013; Senik & et. al., 2010; Hornby & et. al., 2002). In this backdrop, the essay intends to present a critical report on the current resources and support available to SMEs in the UK to support them overcome linguistic and cultural barriers. In addition, the essay also intends to outline key recommendations pertaining to language management strategy (LMS) towards a one stop shop solution. Critical Analysis of Current Resources and Support Available To SMEs In the UK to Support Them Overcome Linguistic and Cultural Barriers It has been argued that exporting is similar to conducting business in domestic trade in terms of challenges faced by the business for gaining substantial profit from the operations. In this regard, success of exporting largely relies on identifying the potential barriers to businesses that are likely to be faced by SMEs. Notably, SMEs dealing with exporting are often faced with certain imperative challenges associated with complexity and fear of unknown related to foreign market. These challenges associated with SMEs dealing with exporting are ascertained to be a combination of various complexities which include language and cultural differences, political turmoil, poorly established legal and regulatory institutions and ordinary infrastructure (Parcelforce Worldwide, 2014). However, among this combination of challenges, it has been ascertained that a lack of language skills and cultural awareness has resulted in considerable amount of loss of business across Europe. SMEs were reported to lose their contract primarily due to the language and cultural barriers. On the other hand, those SMEs recruiting staff having the knowledge of prevailing language skills, ensuing language management strategy, employing native speaking employees and those SMEs hiring professional interpreters and translators were able to achieve greater success (CILT, 2007). Clearly, language and cultural differences have a significant impact on SMEs performance engaged in exporting. In the backdrop of the challenges associated with SMEs exporting to foreign market, many SMEs have recognised the need for acquiring additional language skills and cultural awareness in order to meet their future trading endeavours. Apparently, SMEs across the globe are recognising language management strategies except the SMEs in the UK where the evidence of complacency has been ascertained (Hagen, 2008). In this regard, language management strategies are defined as “the planned adoption of a range of techniques to facilitate effective communication with clients and suppliers abroad” (House of Lords, 2013; European Commission, 2011). In light of the emerging challenges associated with the language and cultural barriers faced by SMEs in the UK, the government has had revealed significant concern over the education policy development. During the year 2003, the UK government introduced the National Skills Strategy entitled as 21st Century Skills with the objectives of ensuring that the employers have the right skill for achieving success of their business. This strategy launched by the UK government provided significant opportunities in terms of developing high level skills without endangering the productivity of SMEs. Similarly, during the year 2006, The Higher Education Funding Council for England (HEFCE) introduced Engaging Employers’ strategy with the aim of developing networks to ‘improve the journey to higher-level learning for employers and employees’. Nonetheless, it can be argued that these strategies undertaken by the UK government was not a coherent and proven strategy to overcome the challenges such as language barriers faced by the SMEs in the UK. Several names were used to define these strategies such as workplace learning, work-related learning and vocational learning which simply created confusion diminishing the ability to overcome the challenges of language and cultural barriers (Treadwell & Kennard, 2009). At the same time, during the year 2011, ‘the British Academy’s language programme’ was introduced for addressing the strategic deficits in language learning. The focus was placed on learning foreign language. Nonetheless, the key priority behind this programme was to achieve economic growth by promoting SMEs success in the foreign market. However, it has been argued that only a few languages were provided with greater importance which includes French language among the most dominant language followed by German and Spanish. Conversely, other new languages such as Russian, Chinese, Hindi and other new languages were barely focussed upon. Correspondingly, it has been observed that despite the increasing demand for foreign language, the UK’s capacity to meet the rising demand for foreign language is argued to be continuously shrinking. The UK Commission for Employment and Skills has been focused on reviewing the areas of language skills in the working life (Tinsley, 2013; European Commission, 2011; Foreman-Peck, 2007). Additionally, driven by the overwhelming evidence pertaining to demand for language and intercultural skills across the SMEs in the UK, the British Chambers of Commerce has made language learning compulsory for all up to Advanced Subsidiary (AS) level. Coupled with the decision of the British Chambers of Commerce, Confederation of British Industry (CBI) has also sought the UK Government to support SMEs to internationalise their business procedures and awareness by assisting the enhancement of the foreign language capability of the UK. Nonetheless, the response of the government has been far from taking a range of actions (University Alliance, n.d.). The UK Trade and Investment (UKTI) can be identified to be active in rendering support to exporting SMEs on matters related to language through its Passport to Export scheme along with providing enterprises an evaluation of their export communications comprising written and spoken communications language training and the application of professional translation as well as interpreting services. UKTI offers SMEs with a subsidised service, the Export Communications Review (ECR), which represents a bespoke report on how companies can deal and overcome language and cultural barriers in order to succeed in foreign markets. UKTI also provides in excess of 50 Web Optimisation for International Trade workshops which covers relevant solutions for SMEs for operating in the international market coupled with addressing the challenges of language and cultural barriers (Coleman, 2014). However, the initiatives of UKTI have not been able to abridge language skill gap so far. Notably, it has been identified that learning languages are seldom combined with the attainment of other workplace skills. It cannot be denied that policymakers in the UK share ambitions to foster a better-educated workforce, rendering more employment opportunities for young people and avail the opportunities associated with international trade, foreign investment and export. Arguably, the fragility associated with language provision, as well as difficulties of engaging course providers, learners, and employers along with government has resulted in significant challenges in terms of seeking the best outcome from the language management strategies (Tinsley, 2013; European Commission, 2011; Foreman-Peck, 2007). It has been further observed that non-government organisations such as HSBC has also identified the needs for developing language skills and cultural awareness where it has introduced Manifesto for British Exports emphasising the challenges faced by SMEs exporting. However, its endeavours towards supporting SMEs have been politically criticised as its policy to promote its own business (HSBC Bank plc, 2013). Federation of Small Businesses (FSB) which is a business support network can also been seen to be active in rendering their support to SMEs with respect to the challenges faced by SMEs in terms of language and cultural barriers along with other issues. However, it can be argued that certain imperative factors associated with this network of business such as a lack of knowledge and experience has resulted in reducing the effectiveness of their support to SMEs (Baldock & Blundel, 2014; European Commission, 2011). Eventually, it can be firmly stated that the contribution of language skills in the UK has been frequently overlooked in policy documents on enterprise and skills. Key Recommendations The critical review of the current resources and support available to SMEs in the UK to support them overcome linguistic and cultural barriers revealed that language and culture are the important aspects for SMEs dealing with exporting in order to succeed in the international market. Correspondingly, the critical review also provided evidences that there is an increasing demand for language Skills in the UK but at the same time the critical review postulated that the capacity of the UK to meet the rising demand for language skills is constantly shrinking. Correspondingly, certain imperative suggestions can be made in order to promote SMEs in overcoming the linguistic and cultural barriers. It has been ascertained that the UK government has undertaken several policies towards supporting SMEs dealing with exporting for ensuring economic growth (European Commission, 2011; Worton, 2009). However, there is no clear provision directed towards language management strategy. Thus, following one stop shop solution pertaining to language management strategy can be outlined below: The provisions of the UK government towards improving the declining language skills should have clear language management strategy. In this regard, it is vital to develop a strategic approach towards offering a series of languages for the workplace It is also crucial that the focus should not be allocated to only French, German or Spanish languages but the language management strategy should also incorporate the importance of new languages particularly Chinese, Russian, Brazilian and Indian languages among others as most of the exporting activities of SMEs in the UK are conducted with the aforesaid countries. Besides, these countries are among the world’s rapidly growing economics There is a greater need for focussing on language education policy of the UK that supports its aspirations for progress as well as global influence It would be vital to integrate language management strategy with subjects related to business sectors in order to ensure effectiveness of language management strategy It is essential to seek government, employers, providers and other agency involvement in meeting the rising demand of language and intercultural skills. Correspondingly, employer groups such as FSB and the government should agree on a clearer strategic vision for how they should work jointly to foster higher level skills throughout the economy Business support agencies should enter in partnerships with universities to collaboratively offer work-based learning focusing on language and cultural aspects Lastly, specific evaluation or measurement tools should be used in order to determine the effectiveness of the language management strategy for bringing improvement while eliminating any wastage of time, money and effort Conclusion It has been observed from the foregoing discussion that the impact of language and cultural barriers is significant on the UK’s SMEs exporting to overseas market. Nonetheless, English as ‘lingua franca’ has offered significant benefits for the SMEs in the UK. However, in the recent times, the need for foreign language skill and cultural awareness has grown primarily due to the declining performances of SMEs highly valuing English language. In the light of growing demand for foreign language skills and constantly shrinking language skill in the UK, government organisations as well as non-government organisations have revealed their firm concern. However, despite the growing concern, the focus is although provided on supporting SMEs but there has been no clear language management strategy currently followed in the UK. Numerous provisions have been introduced to abridge the language skill gap but none of the provisions has been effective enough to address the concerned matter. Besides, significant focus has been placed on French, German and Spanish language while other new languages with which the SMEs conduct their exporting activities such as Russian, Chinese, Brazilian and Indian languages have been identified to be ignored to a certain extent. Thus, it has been concisely suggested to define clear language management strategy as well as integrate language management strategy with subjects related with business sector and so forth in order to eliminate the fragility associated with the current provisions pertaining to language skill and cultural awareness. References Baldock, R. & Blundel, R., 2014. Special Topic: Networking Trends. Quarterly Survey of Small Business in Britain, Vol. 3, No. 1, pp. 4-35. Coleman, C., 2014. Debate on 6 May: Actions Taken Following the Publication in 2013 of the Report of the Select Committee on Small and Medium Sized Enterprises. House of Lords. [Online] Available at: https://www.google.co.in/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CDIQFjAB&url=http%3A%2F%2Fwww.parliament.uk%2Fbriefing-papers%2Flln-2014-016.pdf&ei=AWBnU8jqMdO0uAS75IAw&usg=AFQjCNFkPTRxZ_CDFdRyoU1ihBe3TbCxig&bvm=bv.65788261,d.c2E [Accessed May 05, 2014]. CILT, 2007. ELAN: Effects on the European Economy of Shortages of Foreign Language Skills in Enterprise. Lost Business As a Result of Language and Cultural Barriers. [Online] Available at: http://www.english.lt/uploads/docs/elan_executivesummary.pdf [Accessed May 05, 2014]. European Commission, 2011. Report on Language Management Strategies and Best Practice in European SMEs: The PIMLICO Project. Semantica Ltd, pp. 1-133. Foreman-Peck, J., 2007. Costing Babel: The Contribution Of Language Skills To Exporting And Productivity. Shaping the Future, pp. 1-2. House of Lords, 2013. Roads to Success: SME Exports. Report of Session 2012–13. [Online] Available at: http://www.publications.parliament.uk/pa/ld201213/ldselect/ldsmall/131/131.pdf [Accessed May 05, 2014]. Hagen, S., 2008. Mapping Successful Language Use In International Business: How, When And Where Do European Companies Achieve Success. Future Language Needs. [Online] Available at: http://www.efnil.org/documents/conference-publications/lisbon-2008/05-EFNIL.Lisbon-publ.Hagen.pdf [Accessed May 05, 2014]. HSBC Bank plc, 2013. HSBC launches Manifesto for British Exports. Press Releases. [Online] Available at: http://www.newsroom.business.hsbc.co.uk/press/release/hsbc_launches_manifesto_for_br [Accessed May 05, 2014]. Hornby, G. & et. al., 2002. Perceptions of Export Barriers and cultural issues: The SMEs E-Commerce Experience. Journal of Electronic Commerce Research, Vol. 3, No. 4, pp. 213-226. Parcelforce Worldwide, 2014. Overcoming Barriers to Export: A Guide for Growing Businesses by Parcelforce Worldwide and UK Trade & Investment. Barriers to Exporting. [Online] Available at: http://www.parcelforce.com/sites/default/files/Exporters.pdf [Accessed May 05, 2014]. Senik, Z. C. & et. al., 2010. Influential Factors for SME Internationalization: Evidence from Malaysia. Int. Journal of Economics and Management, Vol. 4, No.2, pp. 285 – 30. Treadwell, P. & Kennard, B., 2009. Strategic Development of High Level Learning for the Workforce in Wales. Cardiff School of Management, pp. 1-102. Tinsley, T., 2013. Languages: The State of the Nation. Alcantara Communications, pp. 1-194. University Alliance, No Date. The Case for Targeted Support for Modern Foreign Language Study in Higher Education: Enhancing the Economic Competitiveness of the UK; Maintaining the Strength and Diversity in HE. Introduction and Summary. [Online] Available at: http://www.unialliance.ac.uk/wp-content/uploads/2013/02/UA_Proposal_Targeted-Support-for-MFL.pdf [Accessed May 05, 2014]. Worton, M., 2009. Review of Modern Foreign Languages Provision in Higher Education in England. University College London, pp. 1-53. Read More