Exporting is a vital stage for small and medium-sized enterprises (SMEs). They must boost their competitiveness to successfully export products so they can compete against their rivals in the international market. But in order to do so, they must also develop their learning abilities. A learning organization can help this process, preparing businesses to become more open to developments in technology and other changes. As a result of continuous, efficient learning, companies can improve their visions and transform themselves into more developed companies.
Many SMEs tend to believe that running a business in a limited, local market does not require learning new skills because there is already a traditional and stable market structure in place. Moreover, the relations between companies and customers in local markets have stabilized a lot over the years. This means there is a strong agreement between parties, and unless a new player enters the market, no dramatic change is expected. Therefore, when local markets with weak connections and lacking knowledge enter the international market, it is harder for them to stay in business and earn profits. Moreover, these closed local markets have vulnerable structures, and when they face external forces, it brings significant impacts that are hard to recover from. Many SMEs in developing countries suffer from the entrance of global players into their local markets because of such reasons.
To lower their vulnerabilities, these enterprises must develop new skills and use their resources on getting an international certification and receiving external funding. Many of them start the export process without much prior knowledge and have workers who cannot speak many foreign languages. When SMEs initially join the international trade industry, they strive to improve their profitability first and then make time to learn other useful skills. While the experience of exporting may allow them to develop some organizational skills along the way, it is still imperative that they have prior knowledge. This knowledge will help them last until they can become more agile and resilient.
Although exporting is suggested to all SMEs as it guarantees development, there is, unfortunately, no guarantee for success. Some companies fail at competing and face various risks. Thus, before an SME starts exporting, it is highly important to be prepared. The most important part is to know how an organization thinks and behaves. All stakeholders should understand that exporting means being open to changes and constantly being in a learning mode. Before you decide to step foot into the global industry, review your company's export potential, develop an action plan, do thorough research on the market, and prepare for possible cultural challenges. Otherwise, you may be faced with destructive results.
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