Nearly half of SMEs have overseas ambitions
Nearly half (46%) of Australian SMEs either plan to enter overseas markets or are already operating internationally, according to new research from nbn co.
The research found that 16% of SMEs currently operate in overseas markets, a further 12% plan to enter international markets and 18% have international expansion ambitions but no firm plans as yet.
International small business trade currently contributes more than $2 billion to Australia’s total annual export value, with the most attractive overseas markets for businesses being China, Singapore and the US due to their strong demand and large potential customer base.
Regionally, Asia is considered to be one of the most lucrative markets for expansion, with 72% of Australian businesses aiming to sell products within the market.
Top industries expanding their business internationally are the IMT sector (80%), wholesale trade (76%), manufacturing (65%), retail (60%), education and training (59%), accommodation and tourism (59%) and food products or services (56%).
But the top barriers to expanding overseas include meeting legal and financial requirements, finding local sources of support in overseas markets and overcoming language barriers.
To help small business owners fulfil their ambitions and overcome these barriers, nbn co has launched a new initiative designed to help businesses tap into global markets. Programs will include a series of webinars and a competition to win one-on-one mentoring with Chinese business expansion experts Cross Border Management.
“The research findings show us there is a growing desire from Australian business owners to expand globally and take their business to the next level,” Cross Border Management Managing Director CT Johnson said.
“We’ve previously seen larger businesses successfully establish their footprints overseas but the expansion of the digital economy and growing access to fast broadband is helping to open up a world of global opportunities for smaller businesses to reach new markets.”
Indeed, almost all (91%) business respondents agreed that online technology is a key enabler to overseas expansion, and 81% said technologies such as the nbn will make overseas expansion easier.
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