SMEs fail on the Globelization Hurdle

Jeff Cornwell has an article about the failure of US small business to export. A Study by UPS reveals:

“…..that most of America’s small and mid-sized businesses have failed to explore the significant growth opportunities offered by an increasingly global economy. Specifically, 67 percent of the nation’s small-to-mid-sized enterprises (SMEs) are still relying solely on the U.S. economy. This figure is surprisingly low given the increasing ease of importing and exporting in today’s economy.”

These numbers do not surprise me at all, in a survey we did in 2004 we found that the hurdles have been considerable:

• 36% finding local partners;
• 21% understanding local markets;
• 16% Financing export activities;
• 11% defining local customer profile;
• 11% language barriers;
• 5% other.

You can read more about our findings here. Having spent many hours in trade commissions around Europe, it is also clear to me that each country is interested in exporting activities of their own small businesses, but less helpful when it comes to importing. In fact the red-tape barriers are considerable.

My personal impression has always been, that many of the “advisors” still have a pre-internet mentality to export/import, which makes it even more difficult for small business to export. This coupled with a less than basic understanding of small business, makes for a poor export/import advisory infrastructure.

With the help of online technology we should see this changing, at least in the services industries. Even very small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal business, like professional, contractors, freelancer, self-employed, sole-trader and virtual assistants, will find it less difficult to export their services, using services like LiveNet.

With LiveNet it is no longer important where on the planet you live, I call this Globelization 3.0. ST.

4 Responses to “SMEs fail on the Globelization Hurdle”

1. www.learnhypnosiseasily.info » SMEs fail on the Globelization Hurdle
   http://www.learnhypnosiseasily.info/2115/smes-fail-on-the-globelization-hurdle/
   
   Said on October 10th, 2007 at 8:13 pm

   […] Stefan Töpfer wrote a fantastic post today on “SMEs fail on the Globelization Hurdle”Here’s ONLY a quick extractWith the help of online technology we should see, this changing, at least in the services industries. Even very small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer- or Personal … […]

2. Phil Connolly
   http://www.spreadsheetsdirect.com
   
   Said on October 10th, 2007 at 9:58 pm

   I’m happy to work for people from other countries. I suppose one thing that puts people off is if you have problems getting paid for the work done. I also think though that some people don’t feel right using a service from another country. It’s perhaps a bit unpatriotic. I can see this changing in the future as people get more and more used to high speed internet links which allow easy file transfers, free phone calls and video links.

3. Stefan Töpfer
   http://www.winweb.com
   
   Said on October 11th, 2007 at 5:48 am

   Phil,

   One way to get paid is 50% up-front for the first job - or something like this. It certainly may not feel right to use services from other countries, and I think it is not always beneficial. Unfortunately we live in a Global Village, so I believe you need to utilize any advantage you can find.

   As I write in other posts here, even our governments are “selling” us out with our own tax money.

   ST.

4. Rebecca Davison
   
   Said on July 23rd, 2008 at 5:36 pm

   Hi Stefan,

   I’m working on a new BBC show, looking for businesses that are struggling in any area for a new TV show. From personnel problems to money matters if the company is in need of top expert advice we may be able to help. Would it be possible to post something like this on your website to see if I can find some case studies for a new business show?

   Many thanks,

   Rebecca

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