Despite the government’s extensive efforts to nudge firms to venture abroad, a survey has found that only a quarter of small and medium enterprises (SMEs) which operate only in Singapore want to spread their wings overseas. REUTERS file photo

SINGAPORE — Despite the government’s extensive efforts to nudge firms to venture abroad, a survey has found that only a quarter of small and medium enterprises (SMEs) which operate only in Singapore want to spread their wings overseas.

The main concerns cited by the firms were insufficient financing and lack of familiarity with other markets. Other worries include the level of competition, regulatory and legal compliance, as well as political instability in overseas markets.

The study by insurance firm QBE involved 402 SMEs here. Among the 238 companies which do not have any overseas presence, 58 said they intend to change that. The findings of the survey — which was conducted in September last year — were published on Monday (Jan 29).

The study noted that improved economic sentiments in Singapore — giving firms the confidence that sufficient growth can be attained domestically — is a possible reason for firms’ lack of appetite for international expansion.

Half of the respondents feel that the economy will improve in the next 12 months, as compared to a quarter (24 per cent) which feel it will worsen.

More at http://www.todayonline.com/singapore/many-spore-smes-not-keen-overseas-foray-survey