Mid-market firms eye international markets for growth this year
More than half of all mid-market firms plan to increase their company’s strategic focus on international markets over the next 12 months, research by Grant Thornton reveals.
Mid-market firms are increasingly looking to capitalise on opportunities overseas in order to boost growth in their organisation, despite some of the economic and political volatility.
The latest data from Grant Thornton’s International Business Report shows that globally more than half of all mid-market firms (52 per cent) plan to increase their company’s strategic focus on international markets over the next 12 months.
With the International Monetary Fund (IMF) projecting international trade to pick up growth through 2024 and into 2025, mid-market firms that plan to increase their focus on international business certainly have high expectations for their prospects abroad, the accounting and advisory firm said.
Three out of four of these internationally focused mid-market businesses expect to increase their exports in the year ahead.
“A similar proportion (77 per cent) aim to increase the overall number of countries in which they do business, while 74 per cent expect an increase in revenue from international markets,” said Grant Thornton.
The research revealed that this international intent is causing a shift in how these businesses work with customers, suppliers, and their own staff.
Around three-quarters of mid-market firms plan to increase the ratio of employees who are focused on international growth over the next year, and 71 per cent of firms that are increasing their focus on international markets expect to grow their use of global suppliers.
“This strong appetite for international growth demonstrates that, despite geopolitical and economic uncertainty, mid-market firms continue to see the importance of international business as a key driver for future growth,” a Grant Thornton report on the research said.
“From acquiring new customers to accessing new pools of talent and skilled workers around the world, business leaders know that finding new markets not only helps them grow, but also diversifies risk on the demand and supply side of their business.”
Grant Thornton global head, international capabilities and support, Dave Munton, said mid-market companies have been pushing to exploit overseas opportunity now for some time.
“It also provides a degree of portfolio management as well because you’re not exposed to just one market. In many ways it’s becoming easier to reach customers in new markets,” said Munton.
“For consumers, the world is getting smaller. It’s not just that the regulatory requirements for certain products may be harmonised across different markets, but customers also expect products to be available wherever they are. It doesn’t matter which country they live in, consumers are online and are buying from a global marketplace.”
Ambitious, globally minded mid-market companies are investing heavily in international expansion, the report shows.
Of those mid-market firms that are looking to grow internationally, two in every three plan to increase investment in their brand, significantly above the global average at 54 per cent.
“This highlights how business leaders aim to differentiate from competitors and increase the visibility of their offering. Firms are investing in their brand to get closer to their customers and stakeholders,” the report said.
