SME Growth

SMEs confident about international expansion

In an operating environment characterised by perpetual change and uncertainty, how can ambitious, growing businesses looking to enter new international markets today make the move successfully? Liza Robbins, chief executive of Kreston Global, explains that given that the strength of the global economy rests as much on the drive and determination of those running small and medium-sized enterprises (SMEs) as on the activities of large corporations, with SMEs contributing half of the world’s GDP, this is a question that deserves thoughtful analysis.

For that reason, Kreston Global conducted in-depth research among SME leaders who have taken this momentous step, and our findings are instructive for anyone considering doing the same. They reveal that international entrepreneurialism (or “interpreneurialism” as we call it) requires resolve, resilience, and pragmatism – and a solid grasp of the tax, regulatory and cultural implications - as well as an eye for a good opportunity.

Lord Phillip Hammond at an event

Liza Robbins, chief executive, Kreston Global 

GlobalData defines agentic AI as advanced AI systems that act autonomously, making decisions and taking actions with limited or no human supervision. An AI agent is a software program that interacts with its environment and collects data, which it uses to perform specific tasks, answer questions, and automate processes for users. The agentic AI ecosystem includes software companies that offer agentic frameworks, software platforms, and agentic tools. The list of companies is growing rapidly and includes system integrators, start-ups, and Big Tech. For enterprises that do not have the resources to create their own AI agents, the industry has already developed many pre-packaged AI agents for a wide range of applications, such as earnings analysers, video script generators, and customer profile builders. Dozens of companies are already providing industry-specific agentic AI solutions, and the number is growing.

In terms of early adopters we predict the leading adopters will be financial services, scientific research, healthcare, transportation and logistics, and industrials.

In the report we provide initial best practices as this is a very new area and software developers are still learning their way through the new frameworks, APIs and protocols. In terms of timelines we believe it will take1 1-2 years for commercial deployments to take off but long-term the migration to native-AI architecture has begun and AI agents will play a critical role.

To access the full report visit: Agentic AI: Strategic Intelligence - Market Research Reports & Consulting | GlobalData UK Ltd.

Strong optimism and a sense of opportunity

One of the most striking results of our survey was the high levels of confidence that exist among these “interpreneurs.” Despite the geopolitical headwinds, respondents expressed a keen sense of optimism about international expansion prospects, rating the current climate at 8.2 out of ten on the positivity scale. Indeed, well over half (57%) said it is easy for businesses to expand overseas now, compared to just over a quarter (27%) who said it is difficult, although there were notable regional differences. Furthermore, most (86%) expect conditions for international expansion to become more favourable in the next few years.

Interpreneurs have many cogent reasons for expanding internationally. Seeking market growth opportunities is the number one motivator, but access to digitalisation and innovation are also fast rising the agenda. The ability to adopt advanced technology was identified as a major future opportunity behind any cross-border move, and a potential target location’s technology infrastructure is seen as a critical “pull” factor when selecting which markets to expand into.

These days, the impact of artificial intelligence cannot be ignored. Two years ago, when we last conducted this research, nine in ten respondents said they were prepared to harness AI: now it is an operational must-have helping to turn international expansion aspirations into reality. Just 1% of interpreneurs today said their businesses are not using AI, and around three quarters reported that AI is already having a significant impact on cross-border growth. They are recognising that AI can support sound decision-making by capturing real-time business insights and wider market intelligence, as well as helping them gain competitive advantage in other ways, from generating efficiency gains to simplifying complex processes and cutting costs.

Tariff regimes and trade agreements are critical considerations

Confidence may be robust, but several challenges loom large – notably the impact of unpredictable tariff regimes and trade disputes. More than half (57%) reported that tariffs and trade disputes have already significantly impacted global strategy, and four in ten recognise tariff-related cost increases as a major threat to their international operations as they look ahead. No wonder that when asked what would make a country most attractive for international expansion, offering favourable trade agreements (such as free trade zones, diplomatic partnerships, or preferential tariff treatment) is now the number one answer – more important even than a country’s future economic growth prospects.

Policy clarity has also become a key differentiator between markets. Concerns around whether a jurisdiction has a transparent regulatory environment and favourable tax policies have jumped sharply in the past two years ago. The reality is that regulatory and tax complexity remain major hurdles to a smooth cross-border transition. Around a third of interpreneurs said that their organisations struggle with complex regulatory compliance requirements and face challenges navigating global tax systems. New reforms such as the OECD’s Pillar One and Two tax frameworks are compounding the compliance challenges.

Therefore, when it comes to tax and regulation obligations, it is more vital than ever to understand both the global perspective and the local picture on the ground in specific locations. This applies equally to creating cultural alignment across organisations operating in different geographies, too. Rules and regulations that are standard in one part of the world may be unfamiliar and even at odds with those that are enforced in another. Balancing global standards with local flexibility is seen as a major challenge in maintaining organisational culture when expanding abroad, as is managing differing workforce norms and employee expectations.

The outlook for interpreneurship

The world needs interpreneurs: understanding the key drivers that motivate decisions to expand abroad, and the barriers businesses face when doing so is vital, so that others can learn from their experience and policy-makers can create an environment in which they can thrive. Often, this is unfamiliar terrain, so more can – and should - be done to support success by providing greater clarity over policy direction, reducing regulatory complexity, and making it easier to understand the benefits and incentives that apply to companies moving into new markets. Overall, though, appetite for international expansion remains strong, and interpreneurs are fully prepared to deploy all their resourcefulness, adaptability, and can-do attitude to make it work.

Access the full Kreston Global Interpreneur report 2026 here

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