Languages a key driver in boosting SME exports - study

New research from Aston University has found language capabilities are a key driver for boosting exports for UK SMEs.

The results of the research, presented in the LO-C 30 Report published by the Association of Translation Companies, reveal that SMEs making use of language capabilities are 30 per cent more successful in exporting than those who do not.

Aston Business School researcher Ankita Tibrewal 's quantitative research on 415 UK SMEs across different sectors examines their organisational-level language capacity and its drivers through statistical analysis and modelling.

The research analyses the impact of language capacity (LO-C) on companies ' export performance and identifies key drivers that facilitate LO-C within an SME.

LO-C, a key concept within the research, indicates the company 's motivation, preparedness and attitudes towards developing language-related capabilities, as well as the actual use of available language capabilities.

SMEs play a critical role in the UK economy, and their contribution increases year on year. SME companies represent 99.9 per cent of the business population with six million businesses and around half of all turnover in the UK 's private sector.

SMEs employ 16.8 million people, 61 per cent of the total workforce.

The LO-C 30 Report is the first comprehensive, country-wide quantitative research study investigating how language capabilities at an organisational level can facilitate the internationalisation of UK SMEs.

Dr Geoff Parkes, senior lecturer at Aston Business School, said: “Previous academic research on UK companies has shown a strong link between exporting and growth and, for SMEs, a key way to generate growth is through exporting products and services to international markets.

“The results of the research strongly indicate that SMEs can significantly increase their export sales, growth and profits by hiring people with language skills and high cultural intelligence, providing language training to existing staff and investing in professional translation services using sophisticated language technology. ”

Raisa McNab, CEO at the Association of Translation Companies, said: “SMEs have had a really hard time adapting to the challenges brought on by Brexit and the Covid pandemic, and we haven 't had any good news for a while. Language services are a very easy, accessible way to drive international growth, and the LO-C 30 Report shows that the returns can be significant. ”

You can read the full LO-C 30 report here.