São Paulo – Most of the Brazilian companies that already operate abroad plan to take new steps for expansion in the international market. This may be seen in a research disclosed on Monday (23) by Regus, an English company that operates in the field of solutions for flexible workspaces. In Brazil, 96% of companies with international presence plan to grow abroad, as against a 61% rate of intention for international operation by companies that are only present on the domestic market.
The research was made in 85 countries, with a total of 12,000 participants (high-level executives) from small, medium and large companies. In Brazil, there were 523 interviews. The global average shows that 80% of companies plan international expansion. The report also shows that national companies operating abroad have better results, in profits or revenues, than those focussed on the domestic market.
“This is due to several factors. When you go to other markets, you mitigate risks in your country. The company will have the profit that comes from abroad, with greater production or a greater scope of clients,” explained Guilherme Ribeiro, director general of Regus in Brazil. The research covered companies in several sectors, among them the textile, mining, auto, consultancy and telecommunications sectors.
The study also shows the main bottlenecks faced by companies with regard to operation abroad. In Brazil, 45% of those researched believe that installation of an office abroad is the main problem to placing the country on the foreign market. To 67%, it is necessary to have a regional manager in the company’s country of origin, while 33% prefer a local manger (in the foreign country).
“Small companies, with less than 50 employees, consider setting up offices in another country a significant difficulty. Large companies do not find this very important,” pointed out Ribeiro. In large companies, points out the executive, language is considered a smaller barrier. “Large companies consider that, apart from English, it is necessary to speak the local language,” he said.
With regard to costs for establishing greater physical presence abroad, Ribeiro points out that they are not so high. “For less than R$ 500 [Brazilian reals – c. US$ 280] you can get an address in another country and a telephone number. Many people find it complicated, but it is easy to grow in other countries,” he said.
Except for the barriers for physical installation and language, factors like knowledge of the local culture and prospection of clients are also obstacles faced by companies interested in internationalisation.
Among the countries researched, China is the only one in which companies focussing mainly on the domestic market declared they have better results than those operating abroad. The list of countries with high level of interest in increasing their internationalisation, like Brazil, includes Mexico (92%), India, (89%), Canada (82%), Japan and the United States (81%). “There are many companies coming to Brazil,” recalled Ribeiro. “There is a significant number of multinational companies coming to the country,” he finished off.
*Translated by Mark Ament
