Barriers faced by Romanian SMEs in exporting

• Author: Boscor D.
• Pages: 203-208

Bulletin of the Transilvania University of Braşov

Series V: Economic Sciences • Vol. 10 (58) No. 1 - 2017

Barriers faced by Romanian SMEs in exporting

Dana BOŞCOR1

Abstract: This study aims to identify the most important barriers faced by Romanians SMEs

in the process of exporting. The research was based on a focus group including 12 managers

from different exporting companies from Brasov. The most important barriers encountered

by companies were linked to currency fluctuations, methods of payment, lack of specialized

staff, lack of financial resources and a low level of government support. Results from the

study revealed that companies should have access at financing in order to invest in new

technologies and to create higher quality products that could meet the requirements of the

foreign buyers. In order to reduce the export barriers, small and medium sized exporters

should create partnerships for reducing the costs of promotion in foreign markets. The

government should also increase its support by offering exporters access at financing and

market information at lower costs.

Key-words: export barriers, product adaptation, financial and human resources

1. Introduction

One of the most attractive entry modes for SMEs is exporting because the exporter

depends less on the home market, has a lower risk in comparison with other entry

options, has the opportunity to test the market and the ability to withdraw from risky

markets with minimum losses.

In the process of exporting, companies face a lot of barriers. Shaw and

Darroch (2004) found that the most important obstacles faced by exporters in

different markets were linked to limited access to capital, limited financial

resources, limited market knowledge and lack of government incentives and support.

(Martins and Pinho, 2010, p.256).

The studies made by Leonidou (2004) show that the lack of qualified export

staff and the lack of knowledge of potential customer markets are important barriers

in exporting. The product barriers linked to quality and technical suitability require

product adaptation for different markets (Tesfom and Lutz, 2006, p.259).

1 Transilvania University of Brașov, dana.boscor@unitbv.ro