Australian SMEs eye out trading abroad
Australia’s SMBs have set their eyes on pursuing international business endeavours as being essential to future success and growth.
Australia’s current economic status has left a number of SMBs concerned according to an HSBC study and in an effort to grow their businesses, 21 percent of the 300 SMEs (with revenue up to $30 million) surveyed are planning to start trading internationally during 2012 with the aim to expand, improve and enter offshore markets. 35 percent of the surveyed businesses have already taken advantage of the offshore trading markets. According to the study, in 2011 the global economic climate was their main concern. Now, it’s the Australian economy that tops their list.
Andrew Skinner from HSBC Bank Australia said Aussie SMEs want a piece of the international trading pie after realising the advantages of extending their services offshore. “As Asia-Pacific countries urbanise and the middle classes grow, there’s a race to climb up the value chain, and Australian SMEs are finding they have significant advantages over in country competitors in areas like construction, agriculture and business services as they cater for the increasing sophistication of consumers in these markets,” said Skinner. The most popular international trading destinations include China, the US and UK.
Skinner says despite the US and UK report subdued economic growth, many SMEs are happy to establish trading deals with countries that share common business practices to Australia. China’s status as the world’s second largest economy and Australia’s largest market for services exports make it an obvious destination of choice.