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Defence & Security Exporting: Support for Small Businesses

Defence & Security Exporting: Support for Small Businesses. Arfan Chaudhry Head, Support to Business. Origin/Background. DSO established 1966 Led on all defence export-related activities Changed to DESO in mid 80s Around 450 civilian/military staff

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Defence & Security Exporting: Support for Small Businesses

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  1. Defence & Security Exporting:Support for Small Businesses Arfan Chaudhry Head, Support to Business

  2. Origin/Background • DSO established 1966 • Led on all defence export-related activities • Changed to DESO in mid 80s • Around 450 civilian/military staff • Most DESO staff & services transferred to UKTI on 1 April 2008 to form the Defence & Security Organisation

  3. Government Support For Defence & Security Exports – Why? • Support/underpin Defence/Security relations • Enhance interoperability • Defence/Security procurement benefits • Maintain Defence/Security industrial base • Wider economic benefits

  4. But Why Help Small Companies? • Around 95% of defence exports (by value) achieved by the 20 largest companies (source: DSO industry review) • HOWEVER • An estimated 99% of UK businesses classified as SMEs (source: BIS) • Less than 25% of SMEs actively export goods and services (source: BIS) • Prime contract sales in UK and overseas underpinned by UK SMEs and their wide range of capabilities

  5. What Is An SME? • Fewer than 250 employees • Turnover not exceeding €50M (c. £42M) • or • Balance sheet not exceeding €43M (c.£36M) • Less than 25% owned by a non-SME • DSO flexible

  6. Principal DSO Services • Regional Directorates • Military Support • Export Support Team • Events – home and abroad • Prime Contractor (Key Account) Management • Exportability Policy Advice • Market Analysis • Security

  7. DSO Regional Directorates • Provide market focus to UKTI DSO activity • Know the customer • Deliver ‘Whitehall’ • Customer’s friend • In-country support

  8. Military Support • All three services • Mainstream & niche marketing • Senior Military Adviser • Embedded specialist Military staff • Above Water Weapons Systems, Electronic Warfare, Air Defence Radar, Comms/Info Systems, Armour, Naval Air, Naval Surface/Underwater, Air Logistics/Eng, Naval Air, Homeland & Maritime Security • Export Support Team

  9. Product Promotion: The Export Support Team • Demos/displays at UK & overseas exhibitions and for Inward Visits • Training in support of sales • Sales promotion/marketing support • Product evaluations • Small business focus

  10. DSO Events • UK – incl. Farnborough (FIAS), DSEi, Security & Policing • Overseas exhibitions • Multi-Nation Inward Missions • Symposium • SME regional seminars • Defence/Security Industry Days (DSIDs) • Briefings

  11. Key Account Management • Closer working relationship with selected companies at senior level • Aim is for a strategic performance review between the two organisations • Key Account Managers, supported by the KAM secretariat

  12. Exportability Exportability Policy Adviser responsible for: • Optimising export potential at an early stage in MoD’s CADMID acquisition cycle • Setting up and managing the provision of advice on exportability to MoD’s acquisition process • Providing an analysis of export opportunities to the MoD procurement teams

  13. Market Analysis:Equipment, Global Issues & Defence Economics/Horizon Scanning ROLE Analysing and forecasting the Global Defence Market and Defence Sectors OUTPUTS Market Intelligence • Annual Global Market overview • Country market reports • Competitor reports • Regional briefs • Defence Economic Analyses • Global statistics

  14. MoD Industrial Engagement Policy Policy encourages foreign participating companies to: • See the UK as a prime location to engage in R&D, inward investment and technology transfer • Extend supply chain opportunities for UK companies • Report their activities in the UK annually

  15. Export Licensing – Controlled Activities Export Control Organisation - the UK’s Licensing Authority for Strategic Export Controls. Controlled Activities - Exports/transfers of listed items from UK or EU; End Use Controls (military and WMD); Trade Controls; and Sanctions/ Embargoes Controlled listed items - identified on Strategic Export Control Lists – Military List and/or Dual Use List www.businesslink.gov.uk/exportcontrol • Provides introductory and background advice and key guidance on export licence process and application • Do I need a licence? What types are there, etc?? • Links to all key resources eg. Control Lists, SPIRE etc www.bis.gov.uk/exportcontrol • Provides more specific policy-related information, etc • Announcements/News – Notices to Exporters & Awareness Bulletins • Training/Awareness events – UK Export Control Training Academy

  16. Export Licensing Applications • If your goods appear on a Control List or are subject to end use controls apply for an Export Licence using • SPIRE - Online application for export of ‘strategic goods’ – military/dual use • www.spire.bis.gov.uk • Resources on SPIRE • Application Form • Control List Classification Service (Ratings) • MoD Form 680 – release of classified information for use in export promotion • Other resources for rating your goods • www.ecochecker.co.uk – on-line tool to check classification • For sanctions, embargoes and other restrictions www.fco.gov.uk

  17. UKTI DSO Security Directorate • Over 18,000 companies (9,000 core) • Some 336,000 employees (135,000 core) • Global security market worth $180Bn • Forecast to grow to $295Bn by 2018 • Responsible for security in broadest sense – from homeland, counter terror, fire, police & safety to commercial, covering both man-made and natural threats • Facilitates cross-Government support for security exports • Supplies a number of UK and overseas security trade events • Mixed civilian and military team • Advised by a multi-disciplined Security Sector Advisory Group

  18. UKTI DSO Defence & Security Boundaries PUBLIC SECURITY DEFENCE MOI Paramilitary Coastguard Border Agencies Police, Fire Transport Agencies (aviation, rail, ports) Olympics/ sporting & other events COMMERCIAL SAFETY & SECURITY

  19. The UK’s Strengths • UK recognised internationally as a world leader • Overarching national security strategy and a new revised counter-terrorism strategy (CONTEST) • Cutting edge technologies across the sector covering the protection of people, assets and critical national infrastructure • A research base and experience that enables us to respond quickly to new and emerging threats • UK services including respected training, mentoring programmes and advice

  20. UKTI DSO Priority Markets 2012 - 13 Middle East – UAE, Oman, Kuwait, Saudi Arabia, Qatar, Libya Far East – India, Malaysia, Japan, South Korea, Indonesia, Thailand Europe – NATO/EU (as a collective market), Turkey North America – USA, Canada South/Central America – Brazil Australasia - Australia

  21. The Small Business Unit • Small Business Charter • Personal Support • Introduction to wider UKTI & DSO services • Events/activities • Prime contractor network • 650 members • £750M sales

  22. www.ukti.gov.uk/defencesecurity/supportforsmes.html Self-Help Web Based Business Model • Interactive/dynamic 3 stage web process • Set up business alerts • Register at www.ukti.gov.uk • Links to MoD sites for UK sales

  23. www.ukti.gov.uk/defencesecurity/supportforsmes.html Stage 1 – New To Exporting • Why export? • Getting off on the right foot • Business ‘health check’ • UKTI regional support • Training/Education • Links to UK trade groups

  24. www.ukti.gov.uk/defencesecurity/supportforsmes.html Stage 2 – Preparing For Market • Regional marketing guides & briefings • OMIS/TAP • Market Analysis • Licensing & Legal • Trade sanctions • Advisory links: • Business ethics • IPR protection • UK Export Finance (ECGD) • The ‘White Book’ • BDEC

  25. www.ukti.gov.uk/defencesecurity/supportforsmes.html Stage 3 – Access New Markets • Defence/Security business opportunities • UK/Overseas events & exhibitions • ‘Meet the Buyer’ • Licensing & Legal • Overseas Government/Agency websites

  26. The 5% • Access to UKTI DSO services/support, based on specific issues, projects, etc • 1 – 2 – 1 support • Relationship Management’ • Personal advice from DSO civilian/military experts • UKTI DSO contact directory

  27. UKTI DSO Support to Business Arfan Chaudhry 020 7215 8337 arfan.chaudhry@ukti.gsi.gov.uk UKTI Small Business Unit Howard Gibbs 020 7215 8204 howard.gibbs@ukti.gsi.gov.uk Welsh Government Ian Jenkins Business, Enterprise, Technology & Science (BETS) 03000 615887 Ian.jenkins@wales.gsi.gov.uk MoD Defence Suppliers Service Phil Margerison 030 679 32832 DESSRT-DSS@mod.uk MoD Centre for Defence Enterprise Jonathan Byrne 01235 438445 science-enterprise@mod.uk Contacts

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