Diversification outside Ireland can help companies manage risk

  • Diversification outside Ireland can help companies manage risk
    Independent.t. E.
    Exporters of indigenous peoples play an important role in the Irish economy. Successfully growing sales in foreign markets, they create and maintain jobs that support regionally balanced economic growth.
    https://www.independent.ie/business/small-business/diversification-beyond-ireland-can-help-firms-manage-risk-37229344.html
    https://www.independent.ie/business/irish/article37229714.ece/b5135/AUTOCROP/h342/2017-06-02_bus_31683751_I1.JPG

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Exporters of indigenous peoples play an important role in the Irish economy. Successfully growing sales in foreign markets, they create and maintain jobs that support regionally balanced economic growth.

Good for the economy, good for individual firms. Often the benefits of exporting include increased sales and profitability, faster growth, greater economies of scale, opportunities to expand the life cycle of a product or service, and improved innovation and competitiveness. Export success creates a vicious circle and brings a high level of confidence that contributes to the development of new business.

It is important to note that diversification beyond its domestic market, but also allows companies to better manage risk. The more markets you are active, the less susceptible to economic cycles in any of them.

Economic rationale to increase the number of Irish exporters and to increase the activity level of those exports, of course.

Against this, however, the factors that can hold first-exporters, and the comfort of the status quo and fear of the unknown. For SMEs focused on the domestic market, development of export sales can seem daunting. But there is a possibility in the UK, the Eurozone, the US and beyond that need to be explored. Simply put, where do you start?

Enterprise Ireland, quarter and month makes in helping companies achieve their global ambitions are more important than ever. We’ve developed a tool for potential and emerging exporters to support this goal. ‘How to prepare for exporting a scorecard is an interactive object that can be used to see how ready firms to start exporting. Easy to use, self-assessment tool, analysis of the responses to a number of issues and report immediately.

The on-site evaluation focuses on your level of preparedness for the implementation of export operations through six key business areas: business planning, personnel Management, operations, sales and marketing, innovation and Finance.

The system of indicators allows potential exporters to focus on key aspects of their business, helping them to consider not only the question of where to start but to determine what practical steps you can take to get there.

There is also a peer-to-peer learning element in the scorecard. Viewers can access the online video case studies in which the team of SMEs share of export experience, openly describing the problems they faced and how they overcame them.

The export journey worth taking. You only have to consider the results of Irish exporting SMEs, recently published by enterprise Ireland to understand why. Last month we announced that the companies we support have recorded export sales of EUR 22.71 billion in 2017, an increase of 7pc by 2016.

Overall, the enterprise Ireland supported companies reached sales of €44.4 billion, up to 8pcs for 2016. Some 20pc of exports of these companies in the Eurozone which showed an increase of 9pc € 4.61 billion in 2017.

Exports to the UK, the largest market for Irish exports now, and is likely in the future, and which represents 34pc of exports, delivered growth of 4pc to €7.62 billion.

While it was a good year for Irish exporting SMEs, while continuing to support new and existing exporters to expand their coverage remains one of the main priorities.

The survey we conducted and found that 85pc of companies we support are actively preparing for leaving the UK.

This is encouraging – ambitious companies to develop a strategy and plan, knowing that readiness is the key to addressing both opportunities and challenges that lie ahead. This is one reason why our preparation for the export indicators makes a useful starting point for SMEs wishing to evaluate export readiness.

The success on world markets is good for companies, good for the economy and good for the job. Our table is a tool that will help firms to consider how best to achieve their global ambitions.

To learn more about the preparation of export performance, visit: enterprise-ireland.com/ExporterDevelopment

Garrett Murray head of development of the exporter at enterprise Ireland

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