New markets and business opportunities have attracted increasing numbers of Swedish small businesses to go abroad when the economic situation is declining. The trend is strong - both among small businesses which last year embarked on international operations and, among those planning to do so in the future. That is the conclusion of SEB's (Skandinaviska Enskilda Banken) latest survey conducted during April and presented today. Ingela Hemming, SEB's business economist, is pleasantly surprised by the results.
"That it was so large an increase was unexpected. We have had the feeling that the economic downturn means that we are becoming more protectionist, but this is a clear picture to the contrary." In one year, the share of small firms dealing in a foreign country or have foreign production increased by 6 percentage points. Most internationalized are companies with 10-49 employees, where 61 percent do business with the world today.
Although the positive attitude to business with foreign countries, it is still associated with many challenges. Lack of personal contacts, cultural differences and the increased costs are factors that are often barriers to a foreign establishment. But for start-ups globalization still seems as a natural starting point for their activities. According to Ingela Hemming this is characteristic, above all for young entrepreneurs.
The Nordic countries, Western Europe and the Baltic countries are at the top of the list when it comes to export of goods and services. But for production in other countries China dominates, followed by the Baltic countries. The SEB office in Shanghai can also confirm that they have more small businesses as customers, largely due to the benefits from allready established networks in the new markets.
Full story in Swedish
News category: Sweden
Published on this site: Apr. 29, 2009
Source: e24.se