Quantifying Export Potential and Barriers of SMEs in V4

Abstract

The article aims at quantifying the export potential and barriers of SMEs in V4 using specific criteria. The research took place in SMEs in Visegrad countries from September 2019 to April 2020, including a questionnaire survey of 478 managers and business owners using logic regression. The results showed differences in export activities of SMEs regarding their legal form, province, size, type of management, legislative obstacles and tax policies. Language and cultural differences were not a barrier to SMEs’ export activities. Micro enterprises’ likelihood of export was 70% smaller than medium-sized firms. Small companies’ prospect of trade abroad was 42% smaller than medium-scale organizations. The export potential grew with the size of an enterprise, indicating an increased export likelihood in limited liability and joint-stock companies with the highest chance in the transport and production sector. The type of management (an owner) was hugely impactful on the company’s exporting activities. Our results give valuable information about effective strategies for export marketing and national exporter development programmes.