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international market opportunities. Even when they have identified a possible new market, they often
experience real difficulties in accessing the limited data available on which to assess expected profit and
risk of doing business in that market. Often, when they are able to obtain data about the new market, it is
frequently unreliable or outdated and so may open the business to additional risks if acted upon. Thus,
identifying and accessing appropriate information, both from private and government sources, remains a
key challenge for SMEs seeking to enter international markets (OECD, 2008).
At the policy level these constraints can be addressed by raising greater awareness of the value of
exporting and providing information about the foreign market and business environments. Apart from
information services, government agencies have been increasingly focusing on more tailored services to
SMEs, such as providing contacts to local businessmen. This responds to a major constraint perceived by
SMEs when approaching foreign markets, that is identifying foreign business opportunities and linking
with appropriate partners (OECD, 2008). Firms willing to operate in foreign markets are often uncertain
about the environment, including the behaviour of their trading partners. Personal knowledge of business
partners can help to reduce the uncertainty and eventually establish personal trust which has proven to be
an important ingredient for mutually beneficial exchange. Online resources and matching systems have
been developed in several cases to open opportunities to SMEs for new partnerships. For instance, the
government in Poland has introduced a portal site to which firms can register, to signal their intention to
export and match with interested foreign importers2 (OECD, 2013).
2.5.2. Policies to address human resource constraints
An important deterrent for SMEs to operate in foreign markets is that they lack qualified personnel to
dedicate to the international activity. It is difficult and costly for any firm to enter and then establish itself
in a new market. Even when it is necessary, SMEs often cannot afford to retain specialist staff (or engage
external experts) to set-up and manage their international operations. Technical, legal, marketing, e-
commerce and supply-chain management expertise are often required for the operations to be successful.
These skills are in short supply worldwide and are often only available in large multinational enterprises
(OECD, 2008).
Capabilities programmes focus on helping firms to enhance relevant expertise and develop internal
capabilities, which form a critical element of the internationalisation process. Typically, these scheme
seek to develop the capabilities of the firm and its employees in the following areas: business planning;
marketing; cultural differences in international markets; language capabilities and knowledge of export
procedures. These programmes also support research into specific technologies, such as production
processes, logistics and machinery, aimed at providing a competitive edge to the SME receiving the
support (OECD, 2008).
In addition, several governments carry out matching services for young people, such as college graduates,
who want to work as interns in firms exposed to international business and seeking new professional
profiles. This is the case, for instance, of INOV Contacto (Box 2.4), a programme launched by the
Portuguese government recognised in 2007 as a best practice by the European Commission.
2 See