Internationally active SMEs yield better results
Article relevant to the workshop SMEs in a European
Context:
Internationally active SMEs yield better results
25% of EU 27 small and medium-sized businesses (SMEs) export or
have exported at some point during the last 3 years. This is
revealed in a new European Commission study available on line.
Internationally active SMEs report an employment growth of 7%
whereas the figure stood at 1% for those without any
international activities. There is also a strong relationship
between internationalisation and innovation. 26% of internationally
active SMEs introduced products or services that were new for their
sector in their country; for other small businesses this is only
8%. However, international activities are mostly geared towards
other countries inside the internal market and only about 13% of EU
SMEs are active in markets outside the EU. European firms are more
internationally active, compared with US and Japanese SMEs. These
are some of the findings of the study "Internationalisation of
European SMEs". It maps the level of internationalisation of
European SMEs and identifies the main barriers and advantages of
internationalisation.
Commission Vice-President Antonio Tajani, responsible for
Entrepreneurship and Industry said: "European SMEs still depend
largely on their domestic markets despite the opportunities brought
by the enlarged single market and by globalisation at large. It's
important for our smaller businesses to improve their performance
in cross-border and international trade transactions in order to
reinforce growth, enhance competitiveness and support the long term
sustainability of companies."
This study analysed 26 separate sectors. The highest percentage
of internationalised SMEs is found in wholesale trade, mining,
manufacturing and sale of motor vehicles. Within services, the
sector 'research' scores very highly. Sectors of activity with the
highest share of exporting SMEs are mining (58%), manufacturing
(56%), wholesale trade (54%), research (54%), sales of motor
vehicles (53%), renting (39%) and transport and communication
(39%).
There is a direct link between internationalisation and
increased SMEs performance.
1. The most relevant findings of the Survey:
- 25% of EU 27 SMEs
export or have exported at some point during the last 3
years
- Partner countries
are mostly other EU countries - 76% of all exporting SMEs
are oriented towards the internal market.
- There is a direct link
between the level of internationalisation and the size of
the company. The larger the SME, the more
internationalised it is.
- There is a negative
correlation between the population size of the SME's home
country and its level of international activity.
2. Better results for internationally active SMEs
- International SMEs
create more jobs: Internationally active SMEs report an
employment growth of 7% versus only 1% for SMEs without any
international activities.
- International SMEs
are more innovative: 26% of internationally active SMEs
introduced products or services that were new for their sector in
their country; for other SMEs this is only 8%.
- Import is a
stepping stone to export: SMEs that both import and
export, started with import twice as often (39%) than with exports
(18%).
- Public support
goes largely un-noticed: Only 16% of SMEs are aware of
public support programmes for internationalisation and only a small
number of SMEs use public support.
- European SMEs are
more internationally active than US and Japanese SMEs.
Overall, European firms are more active than their counterparts in
Japan or the US. Even if only extra EU exports are considered they
still perform better.
3. Recommendations for SME Policy Support
- awareness
and use of public support programmes need to be promoted.
- Easier access to
support measures for micro firms: they are the ones that
need and would benefit more from support programmes.
- Innovation and
internationalisation are closely related. This strongly
suggests the co-ordination of policy measures aimed at stimulating
innovation and internationalisation or even merge the agencies that
implement these two types of policies.
- Import is
a stepping stone to export. Public support programmes should take
this fact into account.
Background:
The goal of this study was to provide an updated and
comprehensive overview of the level of internationalisation of
European SMEs. The data and conclusions of this study are based on
a survey of 9,480 SMEs in 33 European countries. The survey was
carried out during spring 2009. The study analysed all activities
that put SMEs into any meaningful business relationship with a
foreign partner: exports, imports, foreign direct investment,
international subcontracting and international technical
co-operation. The results allow an in-depth overview of the
situation by Country, SME size (micro, small, medium) and sector
(26 separate sectoral groupings were analysed)
More information
http://ec.europa.eu/enterprise/policies/sme/market-access/internationalisation/index_en.htm
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