- Financial Express
How should SMEs decide international market entry mode for expansion
Trade, import, and export for M SMEs: Going global is no longer a prerogative of only the large corporate houses. Reasons are plenty for small & medium enterprises (SMEs) to cater to cross-border markets. Before undertaking an international expansion strategy, understanding a firm’s readiness to engage in international business is crucial. Due to saturation tendencies in the domestic market and dependency on a few key business accounts, most SMEs need international engagement in B2C markets. Going abroad is also a matter of prestige for SMEs. The emerging global competition brings ample opportunities and a natural perception of growth potential in foreign markets. The daring enterprises eventually acquire new skills and technologies from their foreign forays enabling their competitiveness. Moreover, international market expansion helps distribute the risks by diversifying into different cost and profit structures of foreign market operations.