Internationalization has become in many cases the main solution for small and medium-sized enterprises (SMEs) to grow their business. Actually, export sales now account for a third of the Spanish economy.
BusinessGoOn, a professional services company specialized in international business strategy, details the benefits of starting an internationalization process, as follows:
- The first advantage is that it prevents many SMEs from disappearing or being absorbed by bigger companies: internationalization is the key for their survival. What’s more, the companies that position themselves on international markets can quadruple their size comparing with the ones that don’t invest nor export.
- Another benefit is that they can gain competitiveness and higher productivity rates, and their business volume is 50% higher than for the companies that don’t expand internationally. This means more employment, with higher qualifications and better salaries. Internationalized companies are also more resistant to economic recessions.
- Internationalization also means taking on emerging markets with greater potential growth and reducing costs by leveraging economies of scale. By consolidating its position abroad, the company can keep its sales steady in other countries.
- There is also a psychological advantage regarding the employees’ motivation: they feel part of a big family, which also grows thanks their effort and contribution, and this will increase their productivity. Finally, internationalization also contributes to strengthen the brand and the products or services of the company.
The European Association of Perfume and Cosmetic Products (APCE) aims to promote the internationalization of the industry as one of its established functions within the Decalogue of objectives of the Association.