60% of SMEs uncertain about int'l expansion: QBE

Small businesses have put internationalisation aside within the next 24 months.

According to the seventh edition of QBE Insurance's annual research survey of Singaporean SMEs, 60% have revealed international expansion is very much still on the backburner for the next 12 to 24 months because of the effects of the pandemic. Moreover, 29% are not thinking of internationalisation at all. Also, 53% of those who already have an international presence are planning to downsize within the next two years.

The top three concerns around internationalisation plans cited by all SMEs were travel restrictions for employees due to the pandemic, a general lack of knowledge of other markets, and having sufficient financing or funds for expansion. 

"In the last 12 months, SMEs have been carefully adjusting their business strategies, prioritising prudence as they continue to work in a pandemic economy. As many continue to err on the side of caution in 2022, we encourage them to take this time to reassess their business models and operations to give mind to environment-based investments or initiatives that will help provide sustainable business growth post-pandemic," said CEO Ronak Shah.

The survey also uncovered a sombre sentiment – that 61% of SMEs feel pandemic policies, restrictions, and lockdowns will worsen in the next 12 months, in addition to increased operating costs. With current regulations having adversely impacted their business operations, 44% of all SMEs stated that the cost of running their business as their top concern over the past 12 months. This also featured as the top concern for 48% of small-sized SMEs.