Exporting barriers : insights from Portuguese small-and medium-sizes exporters and non-exporters

Abstract

Abstract This study aimed to identify some of the major barriers that may hinder potential exporters and non-exporters from exporting their operations. Both parametric and semi-parametric binary choice models were used to analyze the data with the aim of assessing which of the major barriers detected can better explain the surveyed SMEs' decision to export or not. Six out of the 23 distinct barriers defined initially in the survey were found as statistically significant determiners of the probability that a surveyed SME firm would be a non-exporter. If public agents are interested in promoting and implementing the most effective mechanisms to stimulate exporting of domestic firms, several policy measures are advisable in order to minimize or alleviate the perceived inhibiting impact of barriers on SME firms' exporting decisions. In summary, results from the study revealed that nonexporters consider the lack of knowledge of potential markets, lack of qualified export personnel, lack of technical suitability, degree of competition in the sector, lack of financial assistance (governmental and financial institutions), and lack of qualified human resources as the main export barriers. By comparison, exporters perceived warehousing and control of the physical product flow in the target market to be the biggest barrier.