The Role of Intermediaries: Why SMEs Rarely Go Global Alone

Internationalisation is often portrayed as an entrepreneurial act driven by individual firms. In reality, SMEs rarely expand internationally on their own.

Research highlights the critical role of intermediary organisations — including business support institutions, clusters, incubators and public agencies — in reducing market entry barriers.

Complexity requires mediation

Foreign markets differ in legal frameworks, administrative procedures and business culture. For SMEs, navigating this complexity independently can be overwhelming.

Intermediaries help by:

• translating regulatory requirements

• providing local market insights

• facilitating first contacts and partnerships

This mediation reduces uncertainty and lowers the cost of experimentation.

Trust and credibility in foreign markets

Trust plays a crucial role in cross-border business. SMEs often lack visibility and credibility in new markets.

Being introduced through established intermediaries can:

• accelerate trust-building

• reduce perceived risk

• open doors that remain closed to unknown firms

In this sense, intermediaries act as reputation carriers.

Unequal access to support structures

Despite their importance, access to intermediaries is uneven. SMEs outside major urban centres or innovation hubs often lack proximity to support organisations.

This reinforces regional disparities and limits internationalisation potential — even for competitive firms.

Internationalisation as a collective process

Increasingly, internationalisation is understood as a collective process, shaped by ecosystems rather than isolated firms. Strengthening intermediary networks is therefore a key factor in enabling broader SME participation in global markets.

Programme Manual Online

Choose