1 in 5 Australian SMB owners unsure where to start global expansion

They are seeking support in local taxation advice and international marketing.

Despite the drive to grow their businesses internationally, one in five Australian small and medium business (SMBs) owners were unsure where to begin the expansion abroad, according to the new Global Empowerment study. 

In a statement, Amazon Australia said the study it commissioned also found that over one in four businesses feel that they don’t have the right tools, support or knowledge to expand their footprint abroad, and one in four SMB owners are feeling overwhelmed in expanding their businesses internationally even if they want to do so.

The study also found that 34% of businesses were seeking support for local taxation advice, 32% want support in navigating local and legal compliance requirements, and 30% for international marketing support.

A total of 28% of Australian SMBs also want support for cost effective solutions to handle shipping and fulfilment and 23% seek mentorship.

The study found that one-third of Australian SMB owners plan to expand internationally in the next two years.

Read more: 1 in 3 SMBs in Australia eye international expansion: study

Amazon Australia said the study found that revenue increase is still the top key motivator for growth internationally at 49%, followed by expanding customer base at 43%. However, it said future-proofing their business and the personal sense of achievement also scored highly at 28%.

It also found that a third of the SMB owners in Australia with existing footprint said that operating in other countries allowed them to navigate the challenges of the pandemic, whilst two-thirds of existing exporters observed an increase in global sales in the past 18 months.

Around eight in 10 SMBs also cited the impact of the pandemic as an encouraging factor to expand further abroad.

More than 11,000 Australian businesses, many of which are SMBs, are selling through Amazon and have sold over 25 million units locally and globally in the past year, it said.

Amazon Australia said 60% of Australian sellers export their products via Amazon to customers abroad, noting that export sales by Australian sellers rose by 30% on the prior year.

The survey conducted by McCrindle in October 2021 involved 1,003 Australian SMB owners.