Global volatility reshapes expansion plans for SMEs eyeing international markets
Recent tariff volatility driven primarily by the US administration has had significant impacts on international entrepreneurs around the world. However, new research from Kreston Global suggests that confidence among so-called ‘interpreneurs’ is rising dramatically – with eight-in-ten UK respondents expecting the environment to become more favourable in the years ahead.
Kreston Global is one of the world’s largest accounting networks with more than 155 firms, in more than 110 countries worldwide. Kreston firms advise both businesses and individuals on the full spectrum of accountancy and advisory needs.
Putting this reach to use, the firm surveyed 100 business leaders in each Australia, Brazil, India, Mexico, Nigeria, Singapore, South Africa, Spain, the UAE, the UK, and the US – to measure their optimism for international trade in the coming period. Survey respondents were C-suite executives, owners, chairs, partners, managing directors, directors or senior managers in private sector companies earning between £10 million to £300 million a year that have expanded internationally.
And broadly, the picture is positive, according to the 1,100 respondents. Interpreneurs said they were confident about prospects for international expansion today, with respondents giving the chances of a global expansion climate an average positivity score of 8.2 out of 10. At the same time, 57% said it is easy for businesses to expand overseas at the moment.
It is worth noting some significant regional disparities in sentiment here might be throwing this figure off kilter. An 89% majority said it was “easy” in Nigeria, and 82% in the US – but this sank to just 35% in Spain and 29% in Singapore – where targeted tariffs have had a greater impact, while the threat of further punitive measures still hangs over the economies from the Trump administration.
Overall, fewer than 130 of the survey’s total respondents expected tariffs to have a minimal impact, or none at all, on international expansion projects. But in spite of this, Kreston found that most leaders were positive about what is to come. Regardless of the headwinds, 86% of interpreneurs expect conditions for international business expansion to become more favourable in the next two to three years – with more than half citing access to new customer markets, and similar numbers pointing to advanced technology and joint ventures as opportunities too good to miss.
Sentiment among UK interpreneurs mas notably more cautious. Amid sluggish economic performance, and uncertainty around the nation’s role on the global stage, positivity lags behind the global average – with respondents their rating their expansion potential a 7.7 out of 10.
Explaining why this might be, Kreston highlighted a number of challenges which seem to be more acutely felt in Britain. Even as geopolitical or social disruption was cited by around 16% of UK respondents – less than the more than one-in-five in the rest of the world – the British cohort found it harder to keep pace with regulatory changes, and finding the right partners, cited by more than 40% of respondents. But while much of this may still relate to the strained relations between the UK and EU 10 years on from the Brexit vote, 83% of businesses also said they expect the environment to become more favourable in the years ahead.
Alex Peal, chair of Kreston UK and Ireland, said, “There’s a cautious but genuine optimism about international expansion. From recent client conversations, the main concerns are unexpected costs, regulatory change and finding the right people on the ground. Equally, there’s real enthusiasm about reaching new customers, using technology to scale faster and building partnerships that accelerate growth.”
“The key takeaway for international businesses is that success hinges on getting local insight right. Firms often underestimate the complexity of regulation, culture and talent in new markets, and the value of trusted local advisers and partners in navigating that.”
