Matchmaking Is Strategy: Why First Business Connections Matter More Than Market Research

Internationalisation is often described as a process of market selection. Companies analyse demand, compare competitors, assess regulatory requirements and build entry strategies.

For SMEs, however, the first real challenge abroad is often not analysis. It is access.

Many internationalisation efforts fail not because the product is weak, but because firms struggle to establish the first meaningful business connections in a foreign environment. In this context, matchmaking is not a networking add-on. It is a strategic mechanism that shapes whether internationalisation becomes possible at all.

Internationalisation begins with relationships

Market entry is rarely transactional, especially for smaller firms. Even in highly digital sectors, early expansion depends on trust, credibility and personal connections.

SMEs entering a new country often face an immediate disadvantage: they are unknown. Without local reputation, references or visibility, approaching partners and customers becomes slower and more uncertain.

This is why first connections matter disproportionately. A single trusted introduction can accelerate months of cold outreach. A relevant conversation can clarify whether a market opportunity is real or only theoretical.

Internationalisation, particularly for SMEs, begins not with scale, but with relationships.

The hidden cost of “starting from zero”

Large corporations can compensate for weak networks through resources. They can hire consultants, open offices, run extensive campaigns and absorb long entry periods.

SMEs rarely have that flexibility.

Starting from zero in a foreign ecosystem creates structural friction:

• limited access to decision-makers

• lack of informal market knowledge

• slower credibility-building

• higher perceived risk from local partners

As a result, SMEs often spend significant time exploring markets without gaining traction, not because demand is absent, but because entry points are missing.

Matchmaking reduces this friction by creating structured access to the right actors early in the process.

Connections are also learning mechanisms

First business relationships are not only about sales opportunities. They are one of the fastest ways to learn.

Through direct interaction with local stakeholders, SMEs can better understand:

• how customers evaluate value

• what competitors actually offer

• which standards and expectations matter

• what adaptation is required

• where trust barriers exist

This kind of learning cannot be fully replaced by desk research. It emerges through contact, feedback and iteration.

Matchmaking therefore supports internationalisation as a learning process, not only a commercial one.

Why matchmaking works best through intermediaries

The effectiveness of matchmaking depends on trust. Random networking rarely delivers meaningful outcomes. Structured matchmaking, facilitated by credible intermediary organisations, is different.

Business support institutions, incubators and regional networks act as connectors. They understand local ecosystems and can provide introductions that carry legitimacy.

For SMEs, being connected through established intermediaries lowers perceived risk and increases the likelihood of engagement from foreign partners.

In this sense, matchmaking is not just about meeting people. It is about entering a network through trusted pathways.

Ecosystem-based internationalisation in the Baltic Sea Region

In the Baltic Sea Region, cross-border cooperation is often incremental. SMEs expand through proximity, shared standards and regional partnerships rather than through distant market leaps.

Projects such as BSR Go-abroad strengthen these dynamics by connecting business support organisations across countries and enabling SMEs to access structured matchmaking opportunities.

This approach recognises a key reality: internationalisation is rarely an individual firm journey. It is an ecosystem process shaped by networks, intermediaries and relational infrastructure.

Conclusion: Access comes before scale

For SMEs, the question is often not “Which market should we enter?” but “Who can we enter it with?”

Matchmaking is not a secondary activity. It is a strategic foundation for trust-building, learning and sustainable entry.

Internationalisation becomes more realistic when SMEs gain access to the networks that make foreign markets navigable.

BSR Go-abroad contributes to building these pathways across the Baltic Sea Region, ensuring that SMEs do not have to go abroad alone.

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