Comparative Study Analysis 2022: Post Covid-19 SME Internationalisation Study

Executive Summary

The main aim of this study is to provide a comparative analysis of six regional studies on the internationalisation of SMEs in the post-Covid 19 period from the first stage of the SME Internationalisation Exchange (SIE) Interreg project. This study builds on the findings produced by regional studies from Kent County in the UK, Cantabria in Spain, Lower Saxony in Germany, Nouvelle-Aquitaine in France, Ústí Region in Czech Republic and Molise in Italy. It focuses on identifying the key facilitators of SME internationalisation barriers to SME internationalisation, insights into how Covid-19 has affected firm turnover and internationalisation, support available for SME internationalisation, best practice and gaps in supporting SME internationalisation and recommendations for better support for SME internationalisation within and across the partner regions. Despite the differences in the methodological approaches from the different partners a number of findings have been put forward.

Facilitators of SME internationalisation

A common trend identified as a facilitator for exports across the six regions appears to be the role of new technologies and in particular digitalisation. The ability to innovate has been identified as a key facilitator. Access to specialised support and access to financial subsidies have also been identified as important facilitators.

Barriers to SME Internationalisation

Both Covid-19-related and general barriers exist. Bureaucracy and bureaucratic burden appears to be a key concern across several regions. Also logistical and supply chain issues, decline in purchasing/buying demand and lack of digital skills have been noted across the six studies.

The Impact of Covid-19 on SME Exports

Despite the fact that Covid-w19 has generally led to a decline of exports across the six regions, firms show resilience in the face of Covid-19 across the six regions. Across the six regions some industries were more resilient than others, and some even thrived during Covid-19. Export intensive firms have been more resilient during Covid-19, as they depended on the export market for survival and they were experienced in tackling changes and uncertainty.

Support available for SME internationalisation

All studies identified a complex and bureaucratic environment of support mechanisms. Significant overlaps exist between national and local/regional support mechanisms but also lack of awareness and therefore lack of engagement from SMEs. A number of best practices have been identified throughout the regions that facilitate better engagement, better information dissemination and a more focused or tailored approach to the needs of individual SMEs.

Best practice and gaps in supporting SME internationalisation

All studies identified areas of best practice in terms of the support available to either encourage domestic firms to internationalise or those exporting already to boost their internationalisation efforts. Best practices noted across the six regions were a targeted and tailored SME support, digitalisation technology-driven productivity increase and growth, innovative funding mechanisms and effective collaboration and networking of national and regional bodies providing advice and support with exporting.

Recommendations for better support for SME internationalisation

Several recommendations have been put forward in this report, namely: increasing the awareness of the support available; reducing bureaucracy associated with exporting; creating industry clusters, i.e. networks that also include related and supporting industries, investors and universities; identifying potential markets and suppliers that are geographically closer to the firms’ domestic market; and finally tailoring support depending on the stage of internationalisation of a firm (i.e. new to exporting, already exporting, returning to exporting, etc.), their export intensity (i.e. the extent to which exports contribute to their turnover), their innovative capabilities (i.e. whether they are innovative or not) and the industry in which they operate.