Export programs and SME market choice: evidence from North West England
2017
Kalafsky, Ronald V.
Exporting, despite its potential for fostering increased overall sales, presents substantial obstacles for firms when compared to serving domestic or spatially proximate markets. Some of these problems center on accessing market information and selecting export destinations. Such challenges become even more demanding for small-and-medium-sized enterprises (SMEs), given their resource constraints and in many cases, relative inexperience with global markets. Export promotion programs are a way by which firms can potentially explore new markets. If firms take part in such programs, how do they access global markets and with which countries do they choose to engage? This research note examines the results of a recent export promotion program for SMEs located in North West England. It explores how firms utilized this program and more importantly, it explores market choice for firms participating in two types of direct buyer interaction: onsite visits and trade fair attendance. The results suggest that firms, even in light of trade promotion assistance, often choose to explore proximate or similar markets.
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