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Small firms seek opportunities abroad despite the obstacles, says Aramex

[ June 26, 2024   //   ]

Small and medium sized firms are increasingly turning to international markets to seek out new opportunities, according to forwarding and logistics company, Aramex.

Such markets are becoming attractive to companies seeing to diversify revenue streams says Aramex, which cites an HSBC report that estimates that last year around 450,000 brands have ambitions to seize international opportunities.

However, global expansion can also be fraught with complex and multifarious challenges, warns Aramex regional chief executive of Europe, Umar Butt.

Numerous barriers to entry remain, namely an understanding of the regulatory landscape in each market and awareness of the latest customs tariffs.

He comments: “Despite economic uncertainty and ongoing geopolitical turbulence there remains a strong air of positivity from UK businesses regarding propelling their plans to trade internationally this year which is great to see. However, businesses ultimately need to be aware of the intricacies involved in international trade as without a solid level of understanding, or the right consultative advice to hand, such misgivings can lead to issues ranging from operational disruptions as a result of delays, to significant financial losses.

“For instance, each market has its own set of import and export regulations, which to the untrained eye can be difficult to understand. Without a thorough grasp of these rules, businesses run the risk of delays, fines, or even having their goods rejected at the border. The same applies with customs charges, which can vary from country to country and can quickly change due to trade agreements or geopolitical shifts.

“Staying up to date with regulatory changes and tariff adjustments is fundamental, but this can equally be particularly challenging for small businesses with limited resources. By partnering with experienced logistics partners, businesses can offload these complexities and will be given the right support that will enable them to navigate these challenges effectively, while also ensuring that regulatory compliance is maintained, and customs charges are accurately accounted for.”

He says that Aramex’s own analysis suggests though that there is a swelling volume of small businesses increasingly motivated by the potential for market diversification and revenue growth. Increasing consumer confidence in purchasing goods from overseas, opportunities presented by new trade deals, and improved logistics and supply chain solutions have all encouraged small businesses to broaden their horizons.

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