Obstacles to SME Participation in Global Trade

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A key finding in this section of a very robust report is that all types of trade costs, whether they are fixed or variable, adversely affect the ability of SMEs to participate in trade, to a greater extent than large enterprises.

Since SMEs are more sensitive to trade barriers than large firms, removing obstacles to trade benefits SMEs disproportionately. It is therefore important to understand what these major obstacles are.  You can find out here.

Overcoming Barriers to International Expansion

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Once you’ve established your start-up in your home market, horizons often begin to broaden to growth opportunities in new markets overseas.  International expansion can also be an opportunity to diversify operations and to tap into new sources of talent and raw materials.

While going global is an expansion choice, there are still significant and often overlooked challenges if you’re a start-up entering foreign markets.

Here are a few with solutions on how to overcome barriers to expand into new territories.

Handling the Challenge of Going Global

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Huddle CEO Alastair Mitchell faced challenges in taking his UK-business global but not so much that he gave up.  Huddle, established in 2007, is a business tool for project management and document collaboration that started out small and now serves clients such as Kia Motors, Porter Novelli and Procter & Gamble.

How did Huddle make the leap to going global and what did they learn in the process?  It requires a business owner to:  Develop a global mindset, maintain a teamwork across time zones, deal with red tape (nitty gritty) and understand your business before crossing borders.

Read:  Going Global:  How Huddle Handled the Challenge