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ouncils (LSCs) will manage the funding of different forms of support currently available through a network of Business Links and TECs. In addition to Business Links, LSCs will also collaborate with other agencies such as Chambers of Commerce and Regional Development Agencies. DTI objectives for 2000– 2001 indicate the importance of increasing the productivity and profitability of SMEs, as well as the improvement of support for exporters (DTI Strategic Framework 2000–2001). On a national level, the DTI provides centralised services of advice and information relating to all aspects of international trade and European issues.
Support and advice services specifically related to international business will continue to be provided, within this overall framework, by Export Development Counsellors accessed through the Business Link network. Advice, grants and seminars will be made available to support small firms in activities such as: the design and support of business strategies (domestic or international); training in skill areas such as marketing and export; the provision of market intelligence and information; and visits to trade shows and potential markets.
Empirical studies have shown that small firms utilise the state-provided sources of advice infrequently, preferring ‘business friends’ as a source of advice and support (Bennett and Robson, 1999). Medium-sized firms tend to make more use of official sources of advice, guidance and support, and there is also some evidence that uptake may be greater among the slower growth firms. DTI evaluation studies of the services provided through the TEC network suggest that they are well received by those SMEs that use them, although they also indicate that the services remain underutilised by most firms within the sector. Where the services are used, the most frequently cited benefits are in relation to changing ‘motivation and attitudes’, and improvements in ‘financial control and business planning’. The ‘development of new markets (including export markets)’ is cited less often (DTI, 1995).
The evidence of this programme of research goes some way to explaining why the goal of new market development might not be attained. First, many of the services available through Export Development Counsellors are informational, technical and procedural, and they tend to focus on market intelligence and training and advice about export skills. This type of ‘programmed learning’ does not seem to be an area of difficulty for most small firms. Support might be better targeted, therefore, to the earlier pre-internationalisation phase. The quality of initial decisions about internationalisation is critical and the implications of different options for the continued management of the business have to be evaluated at this stage. Proactive ‘outreach’, in partnership with networks already familiar with the particular industry sector, may be required to identify organisations that may be involved in the pre-internationalisation decision-making process.
Opportunities to meet learning needs for small firms seeking to consolidate and further develop their international activity are also lacking. These needs might best be met through provision of opportunities for learning through networks and tapping into the experience of others in fostering effective social, business and cross-cultural relationships. The re-evaluation of business orientations, underpinning generative learning processes, may also be required if