FUI-Bloggen

Internationalisation of SMEs requires political support

6.3.2025

Granskat inlägg - Reviewed post Företagsekonomi

The Interreg-funded BSR Go-abroad project aims at enhancing the internationalisation of small and medium-sized companies (SMEs) around the Baltic Sea (Interreg, 2025). As a partner in the project, Novia University of Applied Sciences is, for instance, responsible for developing policy recommendations. In many countries, governmental funding for internationalisation and growth is focusing on big companies even if at a European level the total number of SMEs is estimated to be over 26 million employing almost 70 percent of the workforce (Statista, 2025).

Barriers for internationalisation

A dynamic economy comprises companies of all sizes: big, medium, and small. It is also important that at least some of the small companies are eager to grow and strengthen their competitive advantage, as growth may lead to an increase in profits and have a positive impact on employment opportunities (Nurfarida et al., 2022). As countries in Northern Europe are rather small with a limited population and home market, growth-oriented companies have to expand their activities abroad. In most cases internationalisation means export, but it can also be direct investments or international collaboration networks for new innovations (Rahman et al., 2017).

SMEs are facing several barriers for internationalisation. These barriers can be internal, that is, related to factors inside the company, or external which means that the business environment at home or abroad creates difficulties (Urban et al., 2023). Typical internal barriers to internationalisation are insufficient finances, lack of capital to finance expansion, lack of resources (e.g. to develop new products for foreign markets, maintaining standards for export products, meeting requirements associated with packaging and labelling), insufficient market knowledge and lack of foreign market connections (Urban et al., 2023). Of these, financial constraints have been identified as especially challenging as starting an internationalisation process is expensive (Hayet, 2024).

External barriers for internationalisation can be related, for instance, to bureaucratic export/import procedures, lack of governmental incentives for SME internationalisation, and the behaviour of potential customers and competitors in foreign markets. In many countries, customers tend to trust domestic products more than foreign (Sulhaini, 2021). Finally, many companies face so called environmental barriers when entering a new market. The government of the target country might, for instance, pay subventions to and create laws favouring domestic companies, but also more regulations related to sustainability might have an impact on companies eager to enter a new country (see e.g. Amer, 2023).

Policy making for enhancing internationalisation of SMEs

Government policy is often regarded as being first and foremost a course of action (Soltau, 2020). Governments can support the internationalisation of SMEs in many ways. Figure 1 summarises the barriers most commonly discussed in scientific articles (see e.g. Rahman, et al., 2017; Roy, et al., 2016; Urban et al., 2023), where governmental support is eligible.

Figure 1. The main policy for governments to enhance internationalisation of SMEs (summarised by authors)

Of the policies identified in Figure 1, financial support, capacity building and arrangement of networking possibilities between SMEs have been identified as prioritized policies by governments (EU, 2021). Hahyet (2024) highlights though the possibilities of artificial intelligence (AI) and digital tools as supplements during the internationalisation process. This means that SMEs need external business support such as funding and training to make use of AI's transformative power (Arroyabe et al., 2024).

Insights from experienced business coaches involved in the BSR Go-abroad project

The partners in the EU’s Interreg-funded project Go Abroad (see Interreg, 2025) met in January 2025 for a partner meeting in Tallinn. One of the final outcomes of the project will be a blueprint comprising policy recommendations for enhancing the internationalisation of especially micro-SMEs in the Baltic Sea region. In a workshop with experienced business coaches, the coaches were asked to identify the main barriers for the internationalisation of SMEs and how they would support the small companies struggling with internationalisation. The coaches were divided into groups of 4-5 people and asked to discuss the main barriers and agree upon the 3 most important ones. The most important barriers identified were the very fragmented offer of information (many organisations support internationalisation, but the information they offer is never comprehensive), lack of sufficient networks, and knowledge on how to start. Moreover, insufficient financial resources were identified as a key challenge as companies starting their internationalisation process might need legal advice and attend fairs abroad.

In the same workshop the business coaches came also up with some recommendations for the governments. The most important political initiative would be to create a platform comprising all important information from one spot. Political decision-makers should also offer funding for internationalisation to SMEs and the representatives at the embassies in the potential target countries should have a responsibility to help the small companies to enter the market. At all governmental levels (local, regional, national, and European) there is also a need for policies supporting both micro-SMEs with long experience of operating domestically and startups that quickly want to upscale their operations.

Conclusion

The internationalisation of SMEs, particularly in Northern Europe including the Baltic Sea region, is crucial for economic growth, but is hindered by several internal and external barriers. To address both the opportunities and challenges, governments play a key role in supporting SMEs through financial aid, capacity building, and networking opportunities. Emerging technologies like AI can facilitate internationalisation, but SMEs may require external support to leverage these tools effectively.

Insights from experienced business coaches highlight the fragmented nature of available information, insufficient networking opportunities, and financial limitations as key barriers. The need for a centralized platform for internationalisation resources, better funding opportunities, and enhanced governmental support should be emphasized in policy recommendations. A comprehensive approach at all government levels is essential to assist both experienced SMEs and fast-scaling startups in expanding internationally.

“The objective of this project is to increase the resilience of Baltic Sea Region micro SMEs and the Baltic Sea Region, by stimulating increased trade and collaboration within the Baltic Sea Region. This will be done by providing micro SMEs with the knowledge, tools and network to execute effectful internationalisation strategies and build strong local value chains within the Baltic Sea Region.

The project will pilot an internationalisation program for micro SMEs, that will have as its output a blueprint of tools and recommendations on how to increase and support local trade and value chain cooperations among micro SMEs in the BSR. The blueprint will then be transferred to and used by the micro SMEs themselves, business development organisations and business development departments of local authorities in the Baltic Sea geography.

The project will support 250 SMEs throughout the project.

BSR Go-Abroad is co-funded by the European Union through the Interreg Baltic Sea Region program.”

References

Amer, E. (2023). Internationalization, institutional pressures in foreign markets, and environmental sustainability, Journal of International Management, 29 (1), article 100974. https://doi.org/10.1016/j.intman.2022.100974

Arroyabe, M. F., Arranz, C. F. A., De Arroyabe, I. F. & de Arroyabe, J. C. F. (2024). Analyzing AI adoption in European SMEs: A study of digital capabilities, innovation, and external environment, Technology in Society, 79, article 102733. https://doi.org/10.1016/j.techsoc.2024.102733

EU (2021). A policy focus from the policy learning platform on SME competitiveness. https://www.interregeurope.eu/sites/default/files/inline/2021-08-04_Policy_focus_-_Support_schemes_for_SMEs.pdf

Hayet, M. (2024). Internationalisation of European SMEs; challenges & obstacles. LinkedIn. https://www.linkedin.com/pulse/internationalisation-european-smes-challenges-obstacles-mahdyar-hayat-tgn1e/

Interreg (2025). BSR Go-abroad. https://interreg-baltic.eu/project/bsr-go-abroad

Nurfarida, I. N., Mukhlis, M. & Murwani, F. D. (2022). The internationalization of SMEs: Motives and barriers. International Journal of Current Science Research and Review, 5(5), 1749-1756. https://doi.org/10.47191/ijcsrr/v5-i5-43

Rahman, M., Uddin, M. & Lodorfos, G. (2017). Barriers to enter into foreign markets:

Evidence from SMEs in emerging markets. International Marketing Review, 34 (1), 68-86. https://doi.org/10.1108/IMR-10-2014-0322

Roy, A., Sekhar, C. & Vyas, V. (2016). Barriers to internationalization: A study of small and medium enterprises in India. Journal of International Entrepreneurship, 14(4), 513-538. https://doi.org/10.1007/s10843-016-0187-7

Statista (2025). SMEs in Europe – stats & facts. https://www.statista.com/topics/8231/smes-in-europe/#topicOverview

Soltau, F. (2020). Introduction: Public policy development & review. Presentation at NPC Training Workshop. https://sdgs.un.org/sites/default/files/2020-10/Introduction_Policy_FINAL.pdf

Suhlhaini, S. (2021). Consumer behavior towards foreign versus local products and brands: Future research directions, Proceedings of the 2nd Annual Conference on Education and Social Science (ACCESS 2020). https://doi.or/10.2991/assehr.k.210525.124

Urban, W., Krot, K. & Tomaszuk, A. (2023). A cross-national study of internationalisation

barriers with reference to SME value chain. Equilibrium. Quarterly Journal of Economics

and Economic Policy, 18(2), 523–549. https://doi.org/10.24136/eq.2023.016

Texten har granskats och godkänts av Novias redaktionsråd 6.3.2025.

Skribent:

Eva Holmberg & Henrik Virtanen

Nyckelord:

Företagsekonomi, BSR Go-abroad, granskat inlägg

FUI-Bloggen

Blogginlägg som är granskat av Novias redaktionsråd är utmärkta med nyckelordet "Granskat inlägg".

Vi följer CC-BY 4.0 om inget annat nämns.

Ansvarsfriskrivning:  Författaren/författarna ansvarar för för fakta, möjlig utebliven information och innehållets korrekthet i bloggen. Texterna har genomgått en granskning, men de åsikter som uttrycks är författarens egna och återspeglar inte nödvändigtvis Yrkeshögskolan Novias ståndpunkter.

Disclaimer: The author(s) are responsible for the facts, any possible omissions, and the accuracy of the content in the blog.The texts have undergone a review, however, the opinions expressed are those of the author and do not necessarily reflect the views of Novia University of Applied Sciences.

Posta din kommentar

Kommentarer

AngeloShops 22 sep. 2025 11:30 (17 dagar sen)

nexus official site <a href="https://darknetmarketlist.info/ ">nexus shop url </a> nexus shop url <a href="https://darknetmarketlist.info/ ">nexus onion mirror </a>
KennethHor 22 sep. 2025 11:30 (17 dagar sen)

nexus market link <a href="https://darkwebmarketseasy.com/ ">nexus market </a> nexus onion link <a href="https://darkwebmarketseasy.com/ ">nexus darknet url </a>
Richarddot 22 sep. 2025 11:30 (17 dagar sen)

nexus market darknet <a href="https://onoindarknetlinks.com/ ">nexus dark </a> nexus darknet access <a href="https://onoindarknetlinks.com/ ">nexus darknet shop </a>
EdwardBut 22 sep. 2025 11:30 (17 dagar sen)

nexus onion <a href="https://oniondarkweb.com/ ">nexus market darknet </a> nexus darknet market url <a href="https://oniondarkweb.com/ ">nexus shop </a>
AngeloShops 22 sep. 2025 10:54 (17 dagar sen)

nexus market darknet <a href="https://darknetmarketlist.info/ ">nexus darknet market url </a> nexus official site <a href="https://darknetmarketlist.info/ ">nexus darknet url </a>
Richarddot 22 sep. 2025 10:54 (17 dagar sen)

nexus darknet market url <a href="https://onoindarknetlinks.com/ ">nexus official link </a> nexus onion <a href="https://onoindarknetlinks.com/ ">nexus darknet site </a>
EdwardBut 22 sep. 2025 10:54 (17 dagar sen)

nexus darknet url <a href="https://oniondarkweb.com/ ">nexus onion link </a> nexus onion link <a href="https://oniondarkweb.com/ ">nexus darknet shop </a>
KennethHor 22 sep. 2025 10:54 (17 dagar sen)

nexus market darknet <a href="https://darkwebmarketseasy.com/ ">nexus market url </a> nexus darknet access <a href="https://darkwebmarketseasy.com/ ">nexus official link </a>
EdwardBut 22 sep. 2025 10:18 (17 dagar sen)

nexus market url <a href="https://oniondarkweb.com/ ">nexus darknet shop </a> nexus shop url <a href="https://oniondarkweb.com/ ">nexus link </a>
AngeloShops 22 sep. 2025 10:18 (17 dagar sen)

nexus official site <a href="https://darknetmarketlist.info/ ">nexus darknet url </a> nexus market darknet <a href="https://darknetmarketlist.info/ ">nexus shop url </a>

« föregående 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 269 270 271 272 273 274 275 276 277 278 279 280 281 282 283 284 285 286 287 288 289 290 291 292 293 294 295 296 297 298 299 300 301 302 303 304 305 306 307 308 309 310 311 312 313 314 315 316 317 318 319 320 321 322 323 324 325 326 327 328 329 330 331 332 333 334 335 336 337 338 339 340 341 342 343 344 345 346 347 348 349 350 351 352 353 354 355 356 357 358 359 360 361 362 363 364 365 366 367 368 369 370 371 372 373 374 375 376 377 378 379 380 381 382 383 384 385 386 387 388 389 390 391 392 393 394 395 396 397 398 399 400 401 402 403 404 405 406 407 408 409 410 411 412 413 414 415 416 417 418 419 420 421 422 423 424 425 426 427 428 429 430 431 432 433 434 435 436 437 438 439 440 441 442 443 444 445 446 447 448 449 450 451 452 453 454 455 456 457 458 459 460 461 462 463 464 465 466 467 468 469 470 471 472 473 474 475 476 477 478 479 480 481 482 483 484 485 486 487 488 489 490 491 492 493 494 495 496 497 498 499 500 501 502 503 504 505 506 507 508 509 510 511 512 513 514 515 516 517 518 519 520 521 522 523 524 525 526 527 528 529 530 531 532 533 534 535 536 537 538 539 540 541 542 543 544 545 546 547 548 549 550 551 552 553 554 555 556 557 558 559 560 561 562 563 564 565 566 567 568 569 570 571 572 573 574 575 576 577 578 579 580 581 582 583 584 585 586 587 588 589 590 591 592 593 594 595 596 597 598 599 600 601 602 603 604 605 606 607 608 609 610 611 612 613 614 615 616 617 618 619 620 621 622 623 624 625 626 627 628 629 630 631 632 633 634 635 636 637 638 639 640 641 642 643 644 645 646 647 648 649 650 651 652 653 654 655 656 657 658 659 660 661 662 663 664 665 666 667 668 669 670 671 672 673 674 675 676 677 678 679 680 681 682 683 684 685 686 687 688 689 690 691 692 693 694 695 696 697 698 699 700 701 702 703 704 705 706 707 708 709 710 711 712 713 714 715 716 717 718 719 720 721 722 723 724 725 726 727 728 729 730 731 732 733 734 735 736 737 738 739 740 741 742 743 744 745 746 747 748 749 750 751 752 753 754 755 756 757 758 759 760 761 762 763 764 765 766 767 768 769 770 771 772 773 774 775 776 777 778 779 780 781 782 783 784 785 786 787 788 789 790 791 792 793 794 795 796 797 798 799 800 801 nästa »