Challenges Faced by SMEs on Exportation and Possible Strategies

SMEs play an important role in the world economy and contribute substantially to income, output and employment. Reaching global markets is a dream for every. Opening new markets enables firms to increase their sales and hence enabling growth, through increased customer base. Risk is spread by having vast options to market products. This paper analyses the challenges faced by SMEs in exporting their products (internationalization) and possible strategies that may be employed to solve such problems at individual and national level. The paper recommends that SME development requires a crosscutting strategy that touches upon many areas. The study encourage simplified legal and regulatory frameworks, good governance, abundant and accessible finance, suitable infrastructure, supportive education, abundance of foreign market information, sufficiently healthy and flexibly skilled labour, increased commitment, external consultancy, market research and joint ventures. A stepwise approach is recommended as the best approach to conquer foreign markets. The study concludes by indicating that SME development strategies will necessarily be country and context specific