Swedish companies keen to set up abroad

One of every three small Swedish companies has set up abroad, according to a report released by Swedbank.

The report is based on analysis of almost four thousand companies all over Sweden. And the report forecasts that many companies that have already established themselves abroad plan to invest more the venture. Of those who still haven’t taken the step to expand abroad, only a few who have plans to do so.

“Small companies have to invest a lot from their own resources in finding out about establishing themselves abroad. It is mainly difficulties in understanding the laws and the culture of businesses and also of finding trustworthy partners that these small companies have trouble with,” says Cecilia Hermansson, predictions manager at Swedbank.

What drives the small companies to invest in other countries is partly a desire to expand into growing markets, but also partly to improve their competitiveness. The reason given by the companies themselves is the possibility of increasing profits by decreasing production and purchase costs.

So far, it is the mainly the Nordic countries, other European countries and China that have interested them. A total of 8% of the Swedish companies abroad are based in China.