Why export trade is attracting more firms

More African exporting businesses are reporting growth in profits compared to companies focusing on solely domestic markets, the latest survey by Regus, the flexible workspace provider, has revealed. According to the study, exporting firms globally have an advantage over locally-based enterprises, with 40 per cent reporting profit growth last year compared to 36 per cent of those trading domestically. This is for the third year running that exporters are faring better than domestic oriented businesses. While reaching out to a larger pool of prospects plays a role in an exporter’s success, the survey also confirms that having a presence in your export markets has a number of benefits. Specifically, 85 per cent of African businesses say physical proximity helps them deal more effectively with customer problems. Being close to clients also means businesses understand the customers and markets better (82 per cent) and improves customer retention rates (82 per cent). But foreign expansion is a big step for businesses and presents huge challenges if support is lacking, according to the survey. In particular, African firms report that aside from making customer introductions, their government trade delegations could help them expand abroad by providing advice on legal and regulatory matters (53 per cent). The study also found that African firms believe that being close to customers can improve customer satisfaction (79 per cent), boost sales according to 78 per cent of the respondents and increase marketing effectiveness (78 per cent), as well as government introductions to local business organisations and associations (44 per cent) and tax advice (24 per cent). All of these, they said would also help businesses planning foreign expansion and almost a third of businesses (28 per cent) would benefit from a directory of places to network. “People always talk about ‘getting close to the customer’, but in export markets that can be literally true. Survey respondents told us that having a physical presence close to their customers brings about a number of benefits. In particular, businesses report that better customer retention, faster problem resolution and greater satisfaction can be achieved by setting up a location in proximity to their customers or clients,” Joanne Bushell, the Regus Africa vice-president, said while commenting on the survey findings.

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Why export trade is attracting more firms