Quality
56% of business leaders are seeking to sidestep hurdles to growth by focusing on the quality of their offering as motivation for international business.
Access to customers
Access to customers was the second-highest motivator for internationally minded mid-market firms (at 35% of respondents) as they work to expand reach and top-line indicators.
Diversification
Diversifying their revenue streams and risk by entering new markets was also top of mind for business leaders, with 33% citing this as a motivation for international business.
Of internationally-minded Egyptian firms, the lion's share report investing in technology to innovate and stay ahead when setting their sights on international markets. Some 37% of them are also looking to bolster investment in research and development.
Some 42% of Egyptian mid-market firms with international ambitions are investing in attracting and retaining top talent. From investment in training and development to ensuring compensation is aligned with market rates, Egyptian leaders are investing in people to help realize their international growth ambitions.
Egyptian mid-market leaders are keenly aware of the importance of brand equity when it comes to their international expansion initiatives. Some 35% of businesses are looking to invest in their brand to help gain customers, attract talent, and forge business connections - all with an eye toward increasing the visibility of their offering in new markets.
While the majority of investment planks dipped in 2Q24 compared to the previous quarter, the singular uptick in investment was in sustainable initiatives. IBR data reveals that 29% of Egyptian firms surveyed report investing in sustainable initiatives, up 4 percentage points compared to 1Q24 — a growth trend in line with global firms.
Renewed focus on sustainability initiatives is at least partly driven by government efforts to regulate ESG practices and reporting for private and publicly listed firms. Business leaders are also aware that to remain competitive in markets abroad, actionable and measurable steps must be taken on the environmental and social fronts to keep pace with more stringent stakeholder demands.
Almost across the board, respondents reported fewer overall concerns as the business environment and macro conditions improve. Issues on top of mind for Egyptian business leaders were geopolitical disruption and economic uncertainty, cited by 27% and 26% of respondents respectively, although the figures are significantly lower than findings in the EMEA region and globally. A staggering 94% of business leaders in the mid-market report being prepared to extremely prepared for future unforeseen circumstances, reflecting the resilience of the market.
Our research shows the complexities of international expansion, and that the mid-market is carefully considering all aspects of it. Here are the key considerations to take forward in your own business plans.
Visit our global page for the full International Business report research results, which takes a more in-depth look at how the findings differ across sectors and geographies.
