Small and medium-sized enterprises are looking to emerging markets for rapid revenue growth as economic recovery in Europe remains slow, according to the Economist Intelligence Unit Report, sponsored by FedEx Express.
Many executives noted that with the “over-subscribed” and congested nature of the European marketplace, emerging markets have been seen as fertile ground for SMEs seeking above average returns.
Almost 90 per cent of the European SMEs surveyed are already doing business with emerging markets, and more than half expect to increase their involvement in 2011 and 2012.
Some 55 per cent of resdonents believe that the traditional BRIC countries of Brazil, Russia, India and China will be crucial to their business in the coming year, with nearly half (48 per cent) singling out Brazil for improved perceptions of the country, bolstered by a smooth transition of political power and better infrastructure in the run-up to major sporting events.
David Binks, senior vice president, operations, Europe at FedEx Express, said: “Globalisation, e-commerce and free trade has opened up new markets to SMEs across the EMEA region.”
“Emerging markets are seen as crucial to the growth strategy of many European SMEs,” said Jason Sumner, senior editor at the EIU and editor of the report. “And SME executives believe they have some advantages when compared with larger rivals – they can respond more quickly to changing conditions, have closer relationships with customers and can better target niche markets.”