By Business & Finance 
By Karen Lawlor, country manager for Ireland at Regus.
While the global economic recovery continues, countries are busy vying for export-led growth.
As the past seven years have so painfully demonstrated, never before has the world been more interconnected. The imbalances that exacerbated the financial crisis have put a renewed focus on those economies previously dependent on debt-fuelled spending for growth.
If governments are to achieve their ambitions, they will be increasingly reliant on domestic businesses of all sizes and sectors to take their goods and services abroad.
Research has shown that exporting companies are more productive, achieve a better financial performance, and are more likely to stay in business than non-exporting companies.
Entering new markets can also provide commercial inspiration, encouraging new ideas, innovations and increasing the lifespan of specific goods and services as brands reach new customers.
Yet many businesses have been put off from overseas expansion by perceived practical obstacles and the risk of setting up in unknown markets. It can be more complicated than doing business at home, not least because of the cultural differences that can exist, and which must be understood.
Other hurdles might include a different legal and regulatory environment, lack of contacts, and lack of finance to get overseas trade going in the first place.
Regus’s own research found the biggest cause for concern was staff, with 75% of Irish businesses fearful that they would be unable to attract the best quality people. The second biggest drawback was considered to be lack of local knowledge and connections, which 53% of businesses highlighted. Third, at 48%, was lack of flexible office space.
The good news is that there is a lot of practical advice and help out there, not least from the government in your home country as nations compete for an export-led recovery.
Flexible working spaces tend to appeal to companies entering new markets, removing a major practical headache and other red tape. They also allow rapid upscaling and descaling as necessary, limiting financial risk and worry. Access to multi-lingual receptionists, support services, meeting rooms and business lounges can all help to lighten the load when expanding overseas.
Once the practicalities are dealt with the benefits of exporting can be reaped. Not only does it provide the opportunity to find new buyers for a company’s goods and services, but a diverse customer base also allows businesses an element of protection from downturns in one or more of their markets.
Regus research found that 48% of companies which exported abroad increased profits in 2014, compared with just 36% of those that only traded domestically. Similarly 55% of companies trading internationally said their revenues had grown compared with just 46% of those with a purely domestic focus. Almost half of businesses said that China would be an ideal place for expansion, where the swelling middle classes are expected to fuel demand.
Europe is still the second most favoured destination, as companies look beyond the financial crisis that has blighted much of the region over recent years. It is also one of the most profitable export destinations for companies, along with emerging markets.
Third most popular export location was North America, followed by the rapidly expanding markets of India and South America.
There is still a long way to go for global exporting. Irrespective of where a business is located, data gathered by Regus suggests that they tend to prefer to do most overseas business with their traditional trading partners. The UK, for example, remains the most popular destination for Irish exports [1].
However, exports to emerging economies are growing – for example, China for is now Ireland’s sixth largest export market [2]. As demand grows in those economies for services including business, legal, design, and advertising, Ireland and other developed economies stand to benefit.
Exporting is not all about taking risks. It makes strategic sense to diversify into different markets, and as the global recovery gathers steam, export growth is there for the taking.
Regus is the world’s largest provider of flexible workspaces with business centres in 104 countries. Its customers include Google, Toshiba and MasterCard as well as thousands of SMEs.
About the blogger Regus has a network of more than 1,800 business centres in 100 countries. There are four Regus centres in Dublin and one in Cork. Founded in Brussels, Belgium, in 1989, Regus is based in Luxembourg and listed on the London Stock Exchange. You can connect with Karen on LinkedIn Or visit the Regus website.
Karen Lawlor is the country manager for Ireland at the global workplace company Regus. Lawlor is responsible for managing the complete Irish business; a portfolio of five business centres and a team of over 25.
