Kreston Global | June 2024 | Client Update - interpreneur edition

This week, Kreston Global published the results of its latest piece of research into the motivations, challenges and predictions for the future of global business in the small-to-medium-enterprise sector.

After 1,400 interviews with international entrepreneurs (interpreneurs), leading businesses turning over up to ￡300 million, the results showed a resoundingly positive outlook for international expansion.

In this special edition of the Kreston Global Client Update, we will take you through the results and what they might mean for your business.

International expansion expected to rise

International expansion looks likely to increase in the short to medium term. As the world economy has started to see the first signs of growth, interpreneurs worldwide have taken it as a sign to start thinking about their next move. Nigerian respondents were the most positive in outlook, with 72% expecting a significant increase in businesses expanding internationally. The most cautious country was Japan, with only 16% of SME business leaders expecting significant growth in businesses expanding overseas.

Recession still biggest risk despite optimism

The risk results from the 14 countries had distinct variances; however, recession was the top risk for half of the countries surveyed. Although environmental and extreme weather scored the lowest risk factor, globally, the US respondents named it their number one risk to international expansion plans.

ESG moving to the top of the agenda

The majority (93%) do/would consider ESG practices when considering countries or regions to expand into. This was highest in China (64%), Nigeria (62%) and South Africa (54%) and lowest in Germany (18%), Japan (19%), Spain (14%) and France (15%)

Only 6% don’t/wouldn’t consider ESG practices.

Global tax confidence high

Global interpreneurs are resoundingly confident about their understanding of global tax rules. 40% of respondents are extremely confident that they understand the global international tax rules that govern multinational businesses –they have a deep understanding of global tax rules and their implications for multinational businesses.

This was significantly higher in the US (64%), Egypt (56%), and South Africa (53%) and lower in Japan (9%), Spain (23%), and France (26%).

Interpreneurs prepared to use AI in expansion

Most respondents (90%) agree that they feel prepared to harness the benefits of AI in global business operations in the next two years. Half (50%) strongly agree, with the US (72%), and Nigeria (75%) more likely to strongly agree

Only 3% of respondents disagreed with this statement

Find out more

Read the full report, outlining the challenges, motivations and toolkits mid-market business leaders use when expanding internationally. The report offers a global view, with country-based insights.

Download the full report >