The following is an article written by Nando Cesarone of UPS
Asia Pacific Region.
As unbelievable as it may sound, the only source of economic
growth in Europe between 2008 and 2013 came from
exporting goods and services. Today, exports are still the
most important – but fortunately not the only – engines
for growth, according to the European Commission.
Making up over 99 percent of all businesses, small- and
medium-sized enterprises (SMEs) in Europe are big contributors to
this growth – and I have the opportunity to witness their
success stories on a weekly basis.
Exporting success in Austria
Take the Austrian tech company Rascom, for example. A few years
ago, Rascom’s leadership realized that the continued rise in online
shopping created an opportunity – and a challenge – for
them to start selling their products worldwide.
Rascom develops, markets and distributes something that many of
us probably don’t even think about, but is nevertheless critical to
keeping all of our businesses up and running: IT cooling systems –
their best known being the Noctua brand. These are essentially the
fans that keep our computers and laptops from overheating.
Rascom’s superior products helped them quickly grow their
reputation as one of the best in the industry. And as their
reputation grew, so did their sales – and their desire to
expand their horizons beyond Austria.
At UPS, we’ve built our business on helping companies like
Rascom navigate the opportunities created by cross-border trade.
When Rascom came looking for a solution, we provided the
expertise and technology they needed. Today, Rascom efficiently and
reliably exports products to their customers in 30 countries around
the world.
More and more SMEs are following Rascom’s example by taking
their first steps outside of their home market. However, the
majority of European small businesses are not exporting – either
because they do not see the benefits of doing so or they do
not consider themselves ready.
What looks like a straightforward decision on paper is sometimes
more difficult to execute in reality. The practicalities of
exporting can stop SMEs from taking the next step.
Our recently published 2016 UPS European SME Exporting Insights
Study, which surveys 12,000 SMEs in eight European countries, shows
that on average only 22 percent of SMEs are
exporting.
According to our research, the risk of damaged or lost goods,
customs regulations and paperwork and tariff barriers when shipping
outside the EU are keeping SME owners awake at night.
Strategies for overcoming boundaries
We know these barriers to exporting can be challenging and
confusing for small businesses. However, the rewards can be
significant if it is done right. Our study shows that more than
half of European SME exporters experienced revenue growth over the
last three years.
For the first time, we also identified how close non-exporters
in Europe are to entering the export market and what kind of skills
they think they must improve to make the transition. According to
the companies we surveyed, the most important issues they need to
address are the following:
• Improving customer
experience
• Taking advantage of
e-commerce
• Obtaining market intelligence about
customer needs and expectations
These issues can be daunting, and a few years ago they may have
only been addressed by larger companies with the investment
capacity to build their own cross-border business. But this is no
longer true.
Today, a small investment in software and a multi-language
website is enough to tell the world about your product and respond
effectively to customer requests. In addition, accurate online
tracking services give your customers the confidence to know where
their order is and when it will arrive.
Once orders start rolling in, having the right supply chain and
logistics partner by your side who can help you figure out things
like returns, distribution, warehousing and customs regulations can
make the difference between success and failure.
Exporting SMEs need to know that their shipments are going to
get where they need to be, when they need to be there and in full
compliance with all relevant regulations. When they have that
assurance, they can focus on what they do best: creating and
selling their innovative products.
Smaller companies are the engines of prosperity in even the most
advanced economies. In an increasingly connected world, these
businesses can reach customers both down the street and across
the globe.
The world is open for business and more and more European
SMEs are realizing that there is no time like the present to break
through borders and grasp new opportunities for success.
Nando Cesarone is President of UPS Europe.
Reprinted with permission of Longitudes, the UPS
blog devoted to the trends shaping the global economy.
We welcome the re-use, republication, and distribution
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