Lack of language skills results in significant business losses, EU survey says.

"Using translators/interpreters" is a key factor in export performance for SMEs according to the ELAN [Effects on the European Economy of Shortages of Foreign Language Skills in Enterprise] survey.

The survey highlights an alarming amount of lost business due to poor language skills:

The survey of SMEs found that a significant amount of business is being lost as a result of lack of language skills. Across the sample of nearly 2000 businesses, 11% of respondents (195 SMEs) had lost a contract as a result of lack of language skills. Many were unable or unwilling to indicate the size of the contract lost, but 37 businesses had lost actual contracts which together were valued at between €8 million and €13.5 million. A further 54 businesses had lost potential contracts worth in total between €16.5 million and €25.3 million. At least 10 businesses had lost contracts worth over €1 million.

The report's recommendations relative to language management and business include:

• Help businesses to better manage language skills and the "four elements of language management associated with improved export performance" (these are
  "having a language strategy, appointing native speakers, recruiting staff with language
  skills and using translators/interpreters")
• Encourage businesses to develop language skills among their employees, provide language training, and hire foreign students or employees
• Participate in "international business-to-business exchange" programs
• Raise business' awareness of the "bottom line benefits" when it comes to using their customers' languages

Read the entire ELAN [Effects on the European Economy of Shortages of Foreign Language Skills in Enterprise] survey here http://ec.europa.eu/education/policies/lang/doc/elan_en.pdf

Jean-Marie LeRay provides an excellent summary of the lengthy report's findings on his blog here http://adscriptum.blogspot.com/2007/06/challenges-and-nature-of-formal.html