Small- and medium-sized enterprises (SMEs) are finding global success in light of increasing competition and an ever-changing technological ecosystem.
SMEs that earn more than 40% of their revenue outside of their home countries will increase by 66% over the next three years, according to research from Oxford Economics. The number of organizations operating in six or more countries also will increase by 129% over the same period of time.
The research report, titled: SMEs: Equipped To Compete, aggregated insights from 2,100 SMEs across 21 countries. Retailers represented 17% of the SMEs surveyed, while wholesalers represented 16%.
Only 25% of respondents don’t generate revenue outside their home country, while one third of organizations earn more than 20% of revenue outside of their home market.
The globalization of SMEs is being driven by four top concerns: Economic uncertainty; shifting consumer expectations and demand; increasing labor costs; and increasing global competition.
SMEs are transforming their business models and go-to-market strategies, making them more equipped to compete with — and even have an advantage over — their larger competitors. Up to 34% of SMEs have either recently completed or are in the midst of a significant transformation, while 32% are planning a change initiative.
The top three transformation priorities include capitalizing on growth opportunities in expanding markets (41%), entering new markets (36%) and creating a culture of innovation (34%).
Although 35% of all SMEs describe themselves as early adopters of technology, fewer than 30% of retailers and wholesalers said they invest in new technologies. But over the next three years, SMEs will be investing in business management software (50%), cloud computing (35%) and business analytics software (33%).
Click here to download a complete version of the report.