Results of the Swiss International Entrepreneurship Survey (SIES) 2019

The Swiss International Entrepreneurship Survey (SIES) 2019 highlights the importance of a strategy based on one's own strengths for successful internationalization. The international experience of the management is just as relevant as the inclination to innovate. However, the entrepreneurs themselves are the most important success factor for internationalisation.

Successive increase in foreign exposure

The average turnover of all SMEs surveyed is CHF 40.74 million. On average, slightly less than half is generated in foreign markets. At the end of 2018, the SMEs surveyed were active on average in almost 20 countries and on 3 continents.

Expansion abroad initially takes place mainly in neighbouring countries, before more distant regions such as Asia, North America and Eastern Europe are explored. After just one year, SMEs serve an average of 4.1 foreign markets on 1.5 continents, after three 6.6 foreign markets on 1.8 continents, after five 9.2 foreign markets on 2.2 continents.

Successful micro-enterprises

The relative share of exports in total turnover does not necessarily increase with the size of the company. Micro-enterprises record an average export share of 51%, small enterprises are significantly below this with an average of 38% and even medium-sized enterprises achieve a slightly lower average of 47%.

Internationalization increases the level of innovation

The study proves that international business is indispensable for the well-being of the Swiss economy and SMEs in particular. In general, internationalisation increases the level of innovation of SMEs due to the learning effects.

SME respondents cite that on average, the impact of their international business manifests itself most strongly in product innovations (68.3%), new procedures/processes (64.5%), and increased staff skills (63.2%). In the case of micro-enterprises, business model innovations outweigh an increase in the skill potential of employees.

Internationalization by means of global cities

The study confirms SMEs' preference for "hubs". When entering markets that are spatially and culturally more distant - such as Japan, Central America or Southeast Asia - an SME's success is usually essential in a megametropolis such as Tokyo (54.1%), Mexico City (51.5%) or Singapore (47.3%). The top ranking of cities has hardly changed since the last SIES report.

Digitisation effects and research & development

The figures for e-commerce sales by Swiss SMEs are relatively sobering. The level of the share of sales via the internet ranges between 4-5% among the SMEs surveyed, while the value is lowest among medium-sized companies at 4.1%. Only a few are relying on digitalisation to fundamentally change their business model, and big data has played a marginal role to date.

The degree of digitization of an internationally oriented SME is an interesting indicator. On the one hand, it shows that companies that invest more in research and development are significantly more digitally oriented; on the other hand, SMEs with a higher degree of digitization pursue more exploratory goals.

More details (full report) on the Swiss International Entrepreneurship Survey SIES can be found in this Link