Companies that export are more likely to increase profits than those that operate solely in the domestic market. However, a new survey highlights numerous obstacles that prevent companies from expanding into foreign markets.
In this period of unstable economic climate, exporting companies can boast significantly better revenue and profit than those that operate solely in the domestic market. 50 percent of exporters worldwide have increased their profits over the last 12 months, while only 38 percent of those operating exclusively in the domestic market have done so. Various problems, however, prevent companies from expanding their operations beyond the borders of their home country. Creating a positive image abroad, complex foreign tax systems, real estate-related costs, paperwork, political instability, and natural disasters such as floods and earthquakes are some of the issues that deter companies from taking that significant and fruitful step towards exporting.
These are the main conclusions of the second global export survey conducted by Regus, a global provider of business space rental services, which surveyed over 20,000 senior executives from more than 90 countries worldwide.
“Our survey showed the advantages of expanding business abroad,” comments Garry Gürtler, Regus Vice President for Central and Eastern Europe. “However, it is clear that companies wishing to engage in exporting face significant challenges. Once the initial enthusiasm wanes, companies realize they are overwhelmed with paperwork and bureaucratic issues, or that they have problems creating an image abroad. Business centers in a foreign country, such as those offered by Regus, can be the answer to such problems as they provide flexible office space, local business expertise, and administrative services at an affordable price, allowing companies to establish a presence in foreign markets without the financial risk typically associated with expanding business abroad,” concludes Gürtler.
