Only 12% of small businesses export their goods or services. However, exporting companies are growing their sales, growing faster, and being more resilient in times of economic downturn. In addition, thanks to the Internet you can give international visibility to your business and easily access foreign markets.
Here are five reasons to expand your business internationally:
1. Take advantage of duty-free countries
With a population of approximately 37 million, Canada has a relatively small consumer market. The good news is that Canada is open to trade. As the country is party to 14 agreements Free Trade in force, Canadian companies have preferential access to over 1.4 billion consumers in 50 countries. Canada is currently studying or negotiating 14 other free trade agreements, including one with China. These agreements give Canadian businesses a competitive advantage.
2. Whether you're ready or not, global competition is coming
The agreement's free trade are mutual. As a result, foreign companies from the 50 partner countries under current trade agreements have preferential access to the Canadian market. This brings more competition for Canadian companies that focus only on Canada as a market. Canadian companies that export are generally more diversified and less dependent on a single market, which reduces their risk.
3. The "Made in Canada" designation is recognized internationally
Canada has one of the best reputations in the world. The “Made in Canada” brand is a clear competitive advantage for exporters. According to an international survey, Canada is one of the most renowned countries in the world; it ranked first or second every year from 2012 to 2017. When the time comes to export, Canadian companies can bet on the “Canadian” brand and thus promote positive characteristics such as exceptional quality, innovation, reliability, and respect for the environment, to name a few.
4. Exports Boost Sales and Profits
A large number of high performing Canadian companies export their products or services. As a result, a larger share of their revenues comes from exports, according to a BDC study conducted in 2017 among nearly 950,000 Canadian companies entitled Export: growth and profitability driver for SMEs. Other studies have shown that exporting companies generate more income, grow faster, and are more resilient in times of economic downturn than those that only sell locally. Exporting companies also need to be more competitive and productive if they are to succeed internationally.
5. Digital technologies facilitate export
Through e-commerce and online marketing, small Canadian businesses can expand their customer base internationally at low cost without significant start-up costs, for example by first establishing a strong presence in Canada or by opening a store in Canada. 'foreign. It is now easier than ever to access global markets and compete on an equal footing with large companies, and the investment required remains relatively modest. In other words, Canadian small businesses can use the Internet to become micro-multinationals.
Before you can take advantage of expansion outside of Canada, you must have a website.
Almost half of Canadian SMEs still do not have a website, according to the 2019 BDC study, Conquering the Web: Strategies to Boost Your Sales, Profits, and Exports. Only 8.5% of SMEs with a website have advanced online functions such as online payment. BDC surveyed nearly 1,500 business owners with national or international operations to better understand their online presence and how they use the Internet to grow their business.
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