Global volatility reshapes expansion plans for international SMEs

Latest data from international accountancy network Kreston Global highlights the risks and opportunities facing SMEs in a rapidly changing global environment.

Kreston Global has launched its latest business leader report at the Kreston Global World and Europe conference, co-hosted in London on 11 June by Kreston Reeves and the other Kreston UK members.  

The research shows that global uncertainty and the pace of change are reshaping priorities for SMEs pursuing international expansion. This is evident across key areas including market selection, technology adoption, regulation and access to talent. 

Now in its third edition, the ‘Interpreneur report’ brings mid-market global business trends into focus. It is based on a survey of 1,100 ‘interpreneurs’ (international entrepreneurs) with revenue between £10 million up to £300 million across 11 countries, all of whom have successfully expanded into international markets. The report explores global mobility trends for SMEs, and the strategies and tools business leaders are using to navigate today’s complex global landscape.  

Overall, interpreneurs remain optimistic about international expansion, with an average global confidence rating of 8.2 out of 10. 

Findings from UK respondents

Looking at the findings from the UK respondents, they reported a slightly lower but still positive score of 7.7 out of 10. This optimism is tempered by concerns around geopolitical instability (44%), rising tariffs (44%), increasing regulatory and compliance demands (40%) and talent shortages (34%). 

UK respondents highlighted several ongoing challenges: 

• Finding the right local partners and building trusted relationships (47%). 
• Navigating regulatory, ESG and legal compliance requirements (43%). 
• Managing economic volatility, including currency fluctuations, inflation and low growth (40%). 
• Addressing logistics and supply chain complexities (38%). 
• Dealing with global tax regulation, which remains a significant barrier (37%). 

Despite these challenges, 83% of UK businesses expect the environment for global expansion to become more favourable over the next two to three years. 

The most significant opportunities for overseas operations are seen as access to new customer markets (57%), adopting advanced technology (50%) and forming strategic partnerships or joint ventures (47%).  

Half identified favourable trade agreements, economic growth prospects, and access to skills and talent as key factors influencing which countries are most attractive for international expansion.  

Tariffs and trade disputes continue to shape global strategy, with 49% reporting a significant or very significant impact on their expansion plans. At the same time, digital transformation and AI are playing an increasingly important role, with 69% saying AI has a significant or very significant influence on their strategy. 

Andrew Griggs, Senior Partner and Head of Global at Kreston Reeves and Chairman of the Kreston Global Board said: “Countries seeking to attract international business must respond to growing calls for simpler, more transparent regulatory frameworks and competitive tax environments. Without this, they risk losing investment to jurisdictions where it is both easier and more cost-effective to operate.

Successful entrepreneurship depends on a range of factors. In today’s fast-evolving and often unpredictable global landscape, it is no surprise that strong trade relationships and robust technological infrastructure rank highly on the priority list when businesses assess where to invest and grow”

Liza Robbins, Chief Executive of Kreston Global, said: “Although the global challenges faced by interpreneurs are acute, SMEs are uniquely positioned to navigate uncertainty. Their agility allows them to turn disruption into opportunity and drive growth both domestically and internationally. 

“This report aims to equip business leaders with the insights they need to succeed globally, regardless of the complexity of the environment in which they operate.” 

How we can help

Expanding internationally has never been more complex, but with the right advice and support, businesses can turn uncertainty into opportunity. 

Kreston Reeves, together with the Kreston Global network, supports businesses at every stage of their international journey – from market entry and structuring, to navigating tax, regulation and local compliance requirements. 

If your business is considering international expansion or looking to optimise its global operations, get in touch to find out how we can help you meet these challenges with confidence. 

View market insights from across the world, in the full ‘Interpreneur report’ here.