Press about us

Private sector challenges OSEC

Stiff competition in Swiss export promotion: OSEC needs to be more market-oriented in utilizing subsidies. Private sector offers result-based services.

A revolution in export promotion: The new export promotion law enacted by the Bundesrat which came into force on 1 March 2001 will compel a complete re-orientation of the Swiss Office for Trade Promotion (OSEC), although it will continue to receive over 15 million Francs annually in federal subsidies. However, the government will in future expect the organization's till now complacent, public sector style of functioning to be replaced by a more dynamic, market-oriented approach. «The OSEC must strengthen the export potential of enterprises, especially SMEs, in Switzerland and Liechtenstein by providing services that are both relevant on the ground and in line with requirements.»

Private initiative

It is an old adage that providing information, consultancy and training is of little use in export promotion if these do not translate into business opportunities. The idea of embarking on a costly wild goose chase has prompted many small and medium sized Swiss enterprises with definite export potential to put expensive export expansion plans on hold. The reason: Business with foreign countries is always concluded on an inter-personal basis. The experts in the semi-governmental export promotion organizations, diplomatic missions and chambers of commerce who are paid regardless of the results achieved, do not - with perhaps some fortunate exceptions - have either the knowledge or the tenacity to close a deal with the often hard boiled business partners in foreign markets. This is precisely the point where state export promotion falters and privately financed export promoters step in. Private promoters are able to immediately provide interested SMEs with experienced contractual partners in the most important target markets. These partners, called satellites, command a large network of contacts in their market and are familiar with local customs. Fargate AG, a young Swiss company located in the Zurich Technopark, for instance, offers rapid building up of export markets independent of the OSEC. Moreover, it offers this service in all important world markets.

Solid network

The satellites form a tight network spanning the globe. The Swiss head office handles client servicing. Moreover, the final competence for all projects and the authority to direct the personnel involved in the target markets rests with the head office. In addition there are standardized procedures regarding preparation, completion and accounting for the projects spread across the world. Internet-supported technologies are used to ensure coordination between virtual project teams. Of course, this also cuts down on the traveling required by clients and all involved in the project to the bare minimum.

Success pays

The aim of every small and medium enterprise intending to export is to achieve turnover and profits in foreign markets as quickly as possible while keeping costs at reasonable levels. The fee structure specifically takes into account these objectives and the portion of payment contingent on success is individually worked out with the client. After all, the employees working in the target market export bases will be especially hardworking and aggressive if they have a direct interest in turnover and profits and their bread and butter depends on it.

Step by step

There is first a discussion with the client to identify the strategy and markets for achieving a breakthrough. After the first positive results in selected countries are achieved, the preliminary spadework, investments and experiences gained can be used to gradually build up further markets in a phased manner. In an ideal scenario, rapid successes in pilot markets would finance a global expansion strategy within the scope of the overall concept.
 

Jürg Sigerist