Once they are operating internationally, non-paying customers and currency and transport risks are seen as the greatest risks. Dutch businesses expect Asia and South America to show the fastest growth in the coming years.
The recent survey by Rabobank and GfK among 440 Dutch businesses who are already active internationally or intend to expand abroad produced the following conclusions:
- Asia and South America are expected to generate the most growth, although Europe is still by far the favourite location for international business;
- Increased use of the internet offers the best opportunities;
- Reasons to go international: exploit new opportunities and reduce dependence on the domestic market;
- More than a third of the businesses cite foreign legislation and regulations as the biggest obstacle to operating internationally;
- Building a local network is the most time-consuming, expensive and onerous aspect for businesses. They have difficulty in finding the right local partners and customers;
- More than 60% of businesses who are already operating abroad expect their international activities to expand within five years. Nearly a fifth expect this expansion to be significant (19%).
Decisiveness
Although businesses see obstacles to expanding internationally, they certainly do not lack decisiveness. 50% of the companies that are operating internationally needed less than two years to turn their plans to expand abroad into reality. Eric Saris: 'We always talk about the Netherlands as a trading nation, and this is borne out by the figures. People evidently have a good feeling for where opportunities lie, and they are prepared to take them as well.' Businesses frequently turn to colleagues for information and experience (36% of the companies already operating internationally), trade associations (32%) and their bank (20%).
The role of the bank
Three-quarters of the businesses were assisted by their bank when looking for a local branch. The bank also played a part in obtaining licences (56%) and with respect to foreign legislation and regulations (51%), and banks also assist in limiting the risks of corruption, exchange rates and product liability. Eric Saris: 'This survey emphasises that businesses expect support from their bank when doing business abroad. Our clients can rely on the support of the cooperative bank when it comes to financial solutions, but Rabobank can also provide assistance in the form of knowledge and access to networks. In this way we will help our clients to strengthen their businesses.'
Online Masterclass in International Business
In order to access additional support if considering an expansion abroad, businesses can participate in the 5-week Online Masterclass in International Business. Over 1,200 businesses with international ambitions are already participating. Subjects such as finding the right partner, complying with the right legislation and regulations and also cultural differences are dealt with in the course in detail.
The survey was carried out by GfK, which provides reliable market and consumer information. Throughout the world, more than 13,000 market research experts combine their passion with GfK's years of experience in market research. This enables GfK to link global insights with local market information from more than 100 countries.
Please visit rabobank.com for more information.