Export Readiness Assessment of SMEs: Evidence from Asia
Small and medium-sized enterprises SMEs account for the major share of employment and dominate the Asian economies. Export readiness and level of internationalization for enterprises are the main factor in success or failure of an enterprise entering to an international market. The subject is important when Asian supporting organizations are looking to increase the efficiency of their budgets spent on the export support. Having a tool for assessment and measuring the level of export readiness is crucial to answer this need. In this research, a comprehensive model for measuring the degree of internationalization is developed after studying the recent research in this area. The model measures 7 important indicators in the company showing a descriptive profile of the SMEs. This demonstration also shows weakness and strength of the companies which can be planned for improvement. It also categorizes SMEs in three different arenas including: “Export Awareness”, “Export Intention and Planning” and “Practical Export”. The last arena, “Practical Export” is most ideal stage of internationalization in which the company has settled a sustainable export and dynamically start developing new markets and new products to export. It is concluded that the supporting organizations must design supportive tools and credits to help companies in order to improve their weaknesses and get into the last arena.