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Internationalize your business: the advantages

Posted by SI-LOG on 15/05/2019

Internationalize your business: the advantages

SI-LOG 15/05/2019 pubblicato in english, internationalization

Italian SMEs represent about 99% of the total Italian companies and they alone employ almost half of the total active Italian workforce (47.5%).  They are considered the backbone of the country's economy. In Italy, SMEs represent 99% of total companies and 95% of them are small and micro businesses.  Meaning that Italy is the country with the highest number of small and micro businesses. This share of micro-enterprises is the highest of the EU, with 3.82M of micro-enterprises, Italy almost doubles Germany (2.06M).”

The debate on the importance of SMEs in the local scene is certainly not new: every day we hear about them online, in newspapers or on TV programs.

However, we want to analyze the situation of Italian entrepreneurs from a different point of view: What future challenges must they meet in order to assert themselves on a global level?

SMEs play a key role in national economies around the world, generating employment and value added and contributing to innovation. The Industry 4.0 (the 4th industrial revolution): A new production and company management model initially related exclusively to the industrial manufacturing industry.

In Italy, this worldwide trend became known as “imprese 4.0” (companies 4.0) given the high digitalization potential of companies. SMEs are central to the efforts to achieve environmental sustainability and a more inclusive growth. However, these contributions vary widely from firm to firm, from country to country and from sector to sector. Better access to global markets and knowledge networks can strengthen SMEs’ contributions, but trade and investment barriers undermine SME participation, and poor physical and ICT infrastructure prevents SMEs from operating efficiently and accessing international markets at competitive costs. Digitalization offers new opportunities for SMEs to participate in the global economy.




The most popular are rapid technological changes and globalization. Innovative technology can lead to better policy-making, more sustainable business models, new jobs and income opportunities. To cope with this constantly evolving scenario, one of the avenues to be undertaken is that of corporate internationalization.

Internationalization: In Europe, bigger companies export with more probabilities but today, small ones are also starting to concentrate their efforts in export more and more (25% of EU SMEs and 19% of EU Small and Micro enterprises have export activities.).” The international marketplace offers a world of business opportunities for all types of companies, either large or SME (Small and Medium Enterprises).


Why internationalize your business

Let's tale a look at what are the advantages deriving from an internationalization process:

  1. Growth and expansion of your business

It seems perhaps obvious to talk about it, but among the main objectives of opening a business, is that of creating a turnover that goes beyond the national border, to expand its customers and become more competitive. If your business is succeeding in your domestic market, expanding globally will likely improve overall revenue. This suggests customers are global and that if your company looks beyond the shores of the domestic market, you have some real upside potential. This strong motivation drives the entrepreneur to export abroad, to expand his market base. When the small entrepreneur manages to plan an adequate strategy to enter another market, he can become more competitive than his competitors who limit themselves to the traditional domestic market.

  1. Promotion of Made in Italy in the world

Italy has always been one of the countries most appreciated abroad for the craftsmanship and great detail and elegance of its products. The outstanding quality of “Made in Italy” makes it a “brand” that can easily sell itself. The most talented fashion stylists, the most popular foods, the fastest race cars, and a huge number of other excellent goods are produced and exported from Italy throughout the world. How many of you have experienced during a holiday abroad and found large quantities imitations of Italian taste in fashion, or of the exclusive flavors of our kitchen (Fake Italian?) MANY! The Italian government still feels that more can be done to internationally promote Italy’s exports and, more important, to fight the expansion of counterfeit products that financially damage Italian exports in the order of millions of euro.   

On September 28, the Italian Minister of Economic Development Claudio Scajola gave a press conference at the Hearst Tower in New York City announced the principal measures taken or to be adopted by the government to promote “Made in Italy” abroad, and in particular, in the United States. Therefore, the desire to internationalize can also be read as a challenge to the phenomenon of Italian faking in the world and heading towards those markets that appreciate “made in Italy” (for example the USA) and can bring great benefits to their business.

  1. The meeting of two cultures is always an enrichment

Deciding to operate in different markets can be a big advantage from a cultural stand point. Dealing with new markets allows you to interface with a different type of management, different habits and new business ideas. The key to success lies in not remaining in one's own "comfort zone": Keeping an open mind is one of the most difficult things to practice. It means you are open to everyone and everything that comes your way, allowing yourself to embrace different possibilities, opportunities, people, views, suggestions and interests and expand your boundaries! It makes life and business a hell of a lot easier and less complicated. For further information on this topic, you can also read "Interact with American culture: the SI-Log Network solution".

  1. Beyond globalization: the phenomenon of "glocalization"

For some time now, the phenomenon of globalization has redefined the standards in every sector, sometimes obscuring the smallest hidden local identities. Similar to industrialization, globalization has accelerated through technological advances. Especially the development of the internet and improvements in communication technologies and transport have contributed to a more interrelated, interdependent and exchange-oriented world. From an Italian entrepreneur’s point of view, the desire to internationalize also means the desire to re-evaluate their origins and their peculiarities, favoring the phenomenon of glocalization: being able to bring their local craftsmanship to every part of the world, with adequate corporate structure (and with the help of a reliable and competent partner).

In conclusion, the phenomenon of internationalization is the natural effect of the rapid increase in economic exchanges between the various countries over the last 50 years. The survey confirmed specific key drivers giving rise to the success of the INVs in the global market. Firstly, the innovative culture of the firms supports the technological development as well as the knowledge creation, acting as the fundamental drivers for the firms to internationalize. The quality focus and the uniqueness of the product/service provide a stable strategic basis for the firms to succeed in diverse business environments. 

77 percent of firms succeed in the international markets, which strongly indicates that the young age of the business and lack of experience, the constraints of financial, as well as human and tangible resources are no longer the barriers to the SMEs if they have the support of a trustworthy partner. Increasingly the trend that the INVs are becoming the active participants of international trade encourages SMEs to engage in the international business field. In the globalized environment, with the advanced external environmental development of communication technology and information process technology. To grasp all the advantages, however, it will be the entrepreneur's responsibility to make the right choices to expand their business in the selected countries. The advice is to rely on a prepared partner who can support the company throughout the process helping them with their internationalization activities.

Want to know how to export your business to the USA? Click on the image below and read our paper: "Internationalize your business in America: an overview".



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