SMEs from Germany are repeatedly venturing into internationalisation – for example, by buying or selling goods abroad, opening foreign branches or setting up operations in other countries. There are numerous factors for these measures, first and foremost the higher turnover and profit expectations.
International expansion can bring many advantages. For instance, costs can be saved through cheaper sourcing.
In addition, the awareness of the company and its products can be increased and thus a potentially larger group of buyers can be reached. A specific foreign market could possibly show a higher demand for a specific product or service than on the home market.
Germany’s excellent international reputation and the association between German entrepreneurship and the qualities of efficiency and punctuality are certainly not detrimental to expansion. And entrepreneurs who can be relied on are naturally trusted more.
However, international expansion can only be successful if many different conditions are taken into account, because a successful market entry is not a walk in the park. Market research must be carried out and analysed in depth, partners must be found and strategies must be thought out. Questions about taxes and customs duties are just as relevant as considerations about logistics and production chains.
Security issues are also of paramount importance, for example, what about the security of technologies or data protection? What are the legal customs? What manners should be known or need to be learned? In all these areas, a company should always stay up to date. In Germany, it is generally known which paths have to be taken in order to obtain the right information; abroad, one often faces unexpected hurdles, these include prevailing standards in corporate culture or bureaucratic conditions.
The SME BVMW helps on the road to success and provides support in all aspects of preparing for international expansion. With offices abroad in 68 countries, the association has at its disposal a set of tools and a highly qualified group of experts that is second to none.
This vast network serves member companies in their expansion. It is well known that having a strong partner at your side helps to get a foot in the door. Medium-sized interests are thus communicated at all levels. Always seeking dialogue and making acquaintances initiates opportunities all over the world.
As the third-largest exporting country in the world, Germany plays an important role in international trade. Foreign markets offer attractive business potential for small and medium-sized enterprises. 97 per cent of all companies exporting abroad in Germany are SMEs. Even in very small companies, an average of more than 20 per cent of turnover is generated from foreign business. German SMEs are already a mainstay of the global economy. With its location in Malta, the BVMW would like to be the connecting link between our countries.
One of the primary objectives of the Federation is to restore the tarnished reputation of Malta and remove the grey listing. We want to bind German entrepreneurs to Malta through strict compliance, respecting and appreciating the business location, language, country and people. Companies that only see a tax advantage in considering Malta will be rejected and will not be accompanied when entering the Maltese market.
The business location Malta is to be made better known in Germany through lectures and workshops. The advantages are obvious and include a secure political environment, EU membership, the geographic location, well-trained and English-speaking staff, a competitive infrastructure and well-developed internet, double-taxation agreements, attractive business support programme – as well as the sun, beaches, and the Maltese people.
On the other hand, the association offers Maltese companies the key to the German market and to the world through membership.
The transfer of know-how on burning issues such as digitalisation and green energy is already being implemented and enquiries from the pharmaceutical and microelectronics industries are already being processed.
The head of the Malta office and their team are happy to help with any questions regarding Germany.
Alfons Schwarte and Michela Arena, Malta office of the German Association for Small and Medium Businesses