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In the insipid post-financial crisis economic environment, governments, trade associations, and multilateral development banks around the world have set out to seek growth through expanded SME exports. This is a smart strategy: SMEs have a tremendous latent potential as export engines. While SMEs make up the bulk of the number of exporters in all nations, they generate a limited share of any one country's exports. 

 

Yet SMEs face very distinct and often greater hurdles than do large companies to growth through exports. Among these are the elevated sunk costs associated with entry into the export game, which are disproportinately larger for SMEs; limited turnkey international contacts; high trade costs, or costs associated with moving goods to and from ports and airports and through customs; far more challenging credit environment than facing larger firms; and limited management and operational capabilities essential for competing on the global stage.

 

Nextrade Group has deep expertise on SME internationalization. We have recently worked with such entities as the Inter-American Development Bank and Brookings Institution to generate fresh ideas to expand SMEs' participation in global commerce. We will soon also be working with eBay on policy ideas to catalyze online SME exporters. 

SME Exports

                        Explore Further

 

  • Nextrade Group's flagship report for the IDB on SME Internationalization Read here

 

  • 8 key success drivers for SMEs to thrive in export markets Read here

 

  • Expanding SME export finance in the United States Read here