Australian businesses remain optimistic about overseas operations despite the global downturn, according to results from the Export Finance and Insurance Corporation’s (EFIC) second annual Global Readiness Index, which charts the international experiences of Australian companies.
Respondents from more than 80 percent of companies with offshore operations indicated they plan to expand them; more than 40 percent of companies currently without offshore operations plan to do so.
“Despite the backdrop of a worldwide credit crunch and a severe downturn in world trade and production, offshore expansion remains a key strategic imperative for Australian businesses,” said EFIC managing director and CEO Angus Armour.
“Australian businesses aren’t passively waiting for things to improve – they are setting out for new markets to compensate for contraction in their existing markets and position themselves for when growth resumes.”
Many businesses revealed that increasing market share was a key reason for going offshore and cited Australia’s small domestic market as a basis to expand globally. The survey also found that finance was a major obstacle to setting up international operations, particularly for 63 percent of small businesses.
The export credit agency surveyed more than 700 businesses about going global, with results that reveal much about the drivers and challenges of their experiences.