FILIPINO small and medium-sized enterprises should look beyond the country following a report saying SMEs that carve a niche in overseas markets have the greatest chance of survival. According to a new survey by The Economist Intelligence Unit, the forecasting and advisory service within The Economist Group, SMEs in developed and developing countries will derive up to half of their revenues internationally by 2019. While 40 percent of respondents currently earn nothing from international operations, a clear majority, at 72 percent, expect to derive between 11 percent and 50 percent of their revenues internationally in five years. “International expansion is increasingly necessary for 21st century SMEs. Transformational change stemming from advancements in technology and communication is creating opportunity like never before-SMEs can either grab such opportunities, or give them away to a competitor,” the report said. “Gone are the days when ambitious SMEs could sit back and simply own a slice of their home markets,” said. “Now they must think about the world at large, and engage a range of clients, suppliers, and contractors in multiple countries to survive.” However, expanding internationally does not come easy, according to the paper, which is based on results of a survey of 480 SMEs spread across 12 countries and 20 industries. SMEs polled pointed to unreliable infrastructure, prohibitive setup costs, political instability and the inaccessibility of local business networks as the biggest obstacles to international trade. “They find it particularly difficult understanding local business environments which are different to their home market, as Read More …
