This is one of the main findings of an in-depth study conducted by the Economist Intelligence Unit (EIU) on behalf of DHL Express. However, the survey of 480 SME executives and experts from business lobbying groups around the world¹also reveals that severe obstacles still remain for smaller businesses with global aspirations.

International trade is seen as vital to long-term success by SMEs, but challenges, such as political instability, cultural factors and inadequate infrastructure, still cause concern and often outweigh the raw growth potential of overseas markets, decision makers say. The survey also shows a gap in international activity between SMEs in developed and developing markets: nearly 69 percent of the G72 respondents currently trade internationally whereas only 46 percent of the BRICM3 respondents do.

Overcoming different market environments is the biggest hurdle

Many SMEs see barriers to trading internationally. The quality of a target market´s infrastructure, the stability of its politics, administrative costs for establishing a local presence and cultural differences in doing business were all cited by the executives surveyed as factors that deterred them from entering new markets. The unfamiliarity of foreign markets received particular attention: 84% of respondents described understanding a target market's culture or language as important or very important in determining its attractiveness.

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Source: Deutsche Post