Australian companies remain focussed on overseas expansion, despite financial barriers, according to Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency.
The EFIC’s third annual Global Readiness index (GRi), released this month shows Australian companies are continuing to seek expansion opportunities across the globe.
In March this year, 936 Australian companies participated in the GRi survey, which examined key aspects of their experience of going global, including the drivers, destinations and obstacles and sources and availability of funds.
“In the face of difficult conditions in the last year and lingering economic uncertainty, Australian companies’ global growth plans have held up remarkably well,” said Angus Armour, EFIC’s Managing Director and CEO.
“Over the past 12 months, EFIC has seen a significant increase in demand for export finance and insurance solutions from Australian SMEs, he said.
Access to finance remains the major obstacle to offshore expansion, although this has improved as the credit crunch has eased, with 43 per cent of respondents naming it a barrier compared with 58 per cent last year.
Forty-nine per cent of respondents said that improved access to finance would allow them to grow faster in their current markets and 43 per cent said it would accelerate plans to enter new markets.
To view the 2010 GRi, visit: www.efic.gov.au/gri