more-smes-should-be-exporting-to-the-global-marketplace-2 | Capital Office

Exporting is possible for SMEs

To think that small and medium enterprises (SMEs) have the infrastructure and financial characteristics necessary to export their products is overkill for some people, if not a pipe dream. However, despite the difficulties and scope, it is possible to achieve.

In the first instance, it is prudent to note that within the SME segment, midsize companies (a workforce of between 51 and 250 employees) are more likely to export. This is because its corporate structure is better defined and allows them to envision a brighter future compared to small businesses.

Here we present some concepts and practices to be considered by small and medium scale businesses to make their products penetrate foreign markets:

• Creating quality export products. The basic principle of an exporting firm is a product for its quality and freshness. To ensure these qualities, businesses must implement quality systems, whose functions in simple terms are eliminating unnecessary activities and the tuning of key production processes.

• Production capacity. Companies can capitalise in the SME segment by being more flexible and to more smoothly modify their production lines. This is important because when exporting products, companies must ensure double coverage: the domestic market and external.

• Leverage corporations. SMEs can place their products abroad with the support of exporting firms. This will provide access to distribution channels and marketing independently.

• Knowledge and expertise. Companies with export potential should have updated information on the behaviour of foreign market information. Also, to acquire the corporate, financial and legal expertise to deliver your offers in completely different national contexts.

A great way to help SMEs comply with these requirements in foreign trade is outsourcing. Entrepreneurs in the small and medium sector have several options available. To choose the best option, you should explore and analyse each alternative according to the demands of their initiative.