adminthan those operating locally.
Of the SMEs surveyed, most of the respondents are trading internationally and have significantly outperformed companies with operations in their home countries only.
The SMEs said the benefits of this international approach had provided them with access to latest technology, product and services diversification.
The study was done for DHL Express by IHS, a leading global research company.
The results are an eye-opener for African SMEs. In recent years, the SME sector has been increasingly recognised as a key driver for economic growth in Africa.
While no actual data is available on the number of small to medium-sized firms operating on the continent, it is believed they make up over 90 percent of formalised businesses, particularly in countries such as Ghana and South Africa.
“The possibilities opened up by new technologies, the internet, and modern transportation means that there are many foreign trade opportunities out there for African businesses.
“With thorough research and a well-defined strategy, local SMEs can successfully expand into new markets, compete with larger companies, and use their size and nimbleness to their own advantage,” said Mr Charles Brewer, the managing director for DHL Express Sub-Saharan Africa.
The research noted that the small to medium-sized businesses established in the last five years were keeping pace with increasing pace of globalisation and have a sharper international focus than older SMEs, despite having less time in business.
The majority of the small to medium-sized business who performed better on overseas markets in the last three years have indicated plans to increase their exports and turnover in the next three years, despite the uncertain economic environment.
The report, however, does not highlight that inadequate business infrastructure was constraining business competitiveness by reducing efficiencies.
SMEs biggest concerns relating to international trade are lack of information about foreign markets, high customs duties and the difficulties in establishing contacts with foreign partners and an overseas customer base.
Most better-performing SMEs identified in the study employ more than 50 workers and they underscored the importance of resources in overcoming growth barriers.
“There are clearly still some hurdles that remain for small businesses with global aspirations, but we are delighted to see that more and more SMEs are looking at the fantastic opportunity that international trade represents,” said Mr Ken Allen, the chief executive of DHL Express.
“Our mission as a global logistics company is to make this process more efficient, and we will continue to tailor our services and solutions to help SMEs grow and compete in the global village.”
Online Reporter