I am off to London to participate in a week of events selling the opportunity for British business that Emerging Europe represents. Let me begin by defining Emerging Europe. At its core are nine markets, Austria, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Slovakia and Slovenia, which together make up the Foreign Office’s Central European Network. However, in a globalised world business does not function within tight boundaries. Neither do we and I am delighted that representatives from Macedonia and Serbia will also be participating in the London events.
Why Emerging Europe? It is an exciting region which brings together over 100 million people, large sums in EU structural and cohesion funds, and a group of countries that experience higher growth rates by EU standards and which are seeking to modernise and develop rapidly. They are also members of the Single Market and on our doorstep. There are more flights to Poland every day from the UK as there are within Poland. British brands, expertise and quality are valued across the region. And the language of business is increasingly easy for Brits since, increasingly, it’s English!
I have lived and breathed the region since 1982. In those days, the number of British exhibitors at the biggest international fair in Poznań would fit into a very small room. Anything east of the Iron Curtain was distant and unimaginable for most companies. Post 1989, there was an upsurge in interest from British companies in the opportunities right across the region. Some stayed and prospered and are now household names. Others came and went for a variety of reasons. These included difficulties in market entry, excessive bureaucracy, corruption and issues with public procurement.
Since then, the world has moved on. No market is perfect. The scores in terms of the World Bank ease of doing business report vary significantly. But the reality is that even in the newest EU markets, Bulgaria and Romania, there are already a wide range of UK companies making money and doing well. There is room for a lot more. For such a high-potential region, UK market penetration is very low. For new to export and innovative SMEs, the region offers an excellent introduction to selling into emerging markets too. Cultural, linguistic and business barriers are low, especially by emerging market standards.
Our challenge now is to ensure that our Embassies across the region, spearheaded by our UK Trade and Investment teams, help more and more GREAT British companies to export to or invest in our region. So I will be visiting the North West of England and Scotland, as well as London, to help get our message across.