The benefits of internationalisation

Internationalisation should not be seen as a threat but as a potential opportunity for SMEs. In particular, the book points out that the main reasons for developing international activities are access to new markets, services or products, access to knowledge and technology, and cheaper production costs than in the domestic market. Several empirical studies show the benefits of internationalisation. Thus, it is notable that 'companies which export develop much more quickly, in terms of employment, production and added value', and 'internationalised companies not only grow more quickly but are also more innovative'. Finally, 'SMEs operating on the international level have greater changes of survival.  Although the link between internationalisation and the risk of collapse is not clear in the short term, over a longer time frame, international actors can be seen to fail much less often than comparable companies operating in the domestic market alone.'

Internationalising company operations means that managers need to study their management processes (production, logistics, sales, human resources, finances) and management systems (IT, decision making powers, audits). 'We analyse the various stages and phases of company internationalisation' continues Professor Van Caillie. 'Whether by accident or design, SME organisation is becoming increasingly complex. There are four characteristic stages of the internationalisation process of an SME. The first is that of extending markets and exporting beyond the national market, either as the result of an opportunity (an order which is placed which the company doesn't wish to refuse), or through the deliberate decision to seek abroad that which cannot be found in the local, regional or national markets. The second stage is that of a partnership, either formal or informal, with another economic operator situated beyond the national borders, such as a client/supplier relationship. The third stage, subsidiarisation, occurs when the SME grows and its directors deliberately want to extend the company beyond national borders, to have structured and recurring access to the market potential, labour-market potential or technological potential which is indispensable for sustaining long-term growth. The fourth and final stage is the complete and total multi-nationalisation of a company.'

Funding and public sector support

Internationalisation is no exception to the rule, money remains the sinew of war. Following the first part of the book which focuses on the question of internationalisation, the second focuses on funding for SMEs. Company development requires raising finance, particularly if the company plans to expand internationally. In this part of the book, the authors present 'the most widely used sources of funding to respond to the financial requirements generated by the internationalisation of company activities.  Financing international transactions then raises the question of international payment techniques and payment instruments. Payment instruments relate to the monetary vehicle which annuls the contracted debt, while payment techniques cover the methods used to repatriate the means of payment agreed in the contract'. Finally, one chapter is devoted to the means of covering or reducing risks related to internationalisation mentioned above, including financial risk.

The third and last part of the book deals with public-sector support measures for SME internationalisation. 'In Belgium, we benefit from a range of support and assistance measures on the regional, federal and European scale. These are significant, but many companies either have a poor understanding, or are completely unaware of them' stresses Van Caillie. The book overcomes this lack of understanding by offering entrepreneurs a detailed list of the various measures in the Brussels-Capital Region, the Flemish region and the Walloon region, as well as on the federal and European levels.  Various aspects of these measures are presented and explained: the principle, the eligibility criteria, the conditions, the scale of public sector intervention, and the procedures for accessing funding. A useful index rounds off this book, which is relevant for directors of all companies, whether large or small, as well as for individual entrepreneurs, and which will help them succeed abroad.