There is no one size fits all approach to going overseas. Much depends on the risk appetite, of the firm. SMEs considering going overseas can consider exporting, licensing, franchising, joint ventures, acquisition or green-field operations. Each of these options carry benefits and risks.

Venturing overseas carry a fair amount of risks and rewards. SMEs planning to go overseas are advised to have a partner or guide that understands the market and can help the SME navigate through the treacherous grounds.

There are many important factors to consider when looking at overseas expansion. First and foremost, SMEs need to understand what is their primary motivation to internationalize.

Different companies may be motivated by different reasons. Some of the possible motivations for internationalization are:

• to follow and support their clients’ overseas expansion;
• to compensate for home market saturation or decline;
• possibility or necessity of increasing sales;
• to access resources and / reduce its costs of labour;
• to diversify its operations and associated risks; •
• to take advantage of growth opportunities in other markets;
• to exploit economies of scale and reach;
• to gain knowledge about other clients and markets, the capacity and strength of competitors at a global level; etc.

Once the SMEs is clear on its motivation, having the right business model can minimize some of the risks of internationalization