According to new research from HSBC, international earnings of the world's fastest-growing companies are predicted to surpass domestic revenue by 2030.
A survey of 1,143 global senior decision makers in companies with a revenue between £18m and $5bn found that overseas revenue currently represents less than half of their income, as reported by .
However, this is expected to change in the next five years as business leaders prepare for global expansion to become a higher priority.
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In an interview with City AM, Vivek Ramachandran, HSBC's head of global trade solutions, stated that companies not considering global expansion are "you're missing out on a huge opportunity".
He added: "If you've got a competitive product or service, you're missing out on an opportunity by not defining your market more globally," Ramachandran emphasised that this shift was not due to a decline in the domestic market and there was no sentiment of businesses fleeing their homeland. "It's rather we're seeing additional opportunities grow," he told City AM.
Domestic consumers to benefit
The study identified the top factors supporting international success as having the right network, capable local teams, favourable macroeconomic conditions and in-depth market knowledge. Regulatory and compliance issues made up nearly a third of the top challenges for businesses at 31 per cent.
Brand recognition ranked second at 25 per cent, with increased competition third at 24 per cent.
The latest research signals heightened global competition, which Ramachandran views as promising for consumers in the 海角视频. "Competing in new markets increases your effectiveness in the whole market," he explained.
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"So I actually think this is good news for domestic consumers."
Ramachandran remarked that expanding to new markets doesn't necessarily come at a cost to one's local customer base.
He encouraged firms on the path to growth to cast their nets wider than similar or nearby markets and to "think of the world in a much more expansive way."
AI in international expansion
On the subject of artificial intelligence (AI) in international business growth, the study uncovered that nearly two-thirds of businesses utilise AI to forward their plans for entering new overseas territories. Commenting on the power of AI, Ramachandran acknowledged the technology's efficiencies.
However, he stressed that enterprises aiming for global dominance should still maintain a "local presence."
HSBC has recently introduced its Global Expansion Assessment tool designed to support business leaders by providing an analysis of their company and identifying strengths and opportunities for expansion.
Ramachandran labelled the tool as essential for a "checklist" pre-expansion, modifying it according to companies' unique needs and the particular market they wish to penetrate.
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He also advised ambitious companies keen on scaling their operations globally to be well prepared. Jason Talwar, a lecturer from Brown University who oversaw the research, commented: "Companies worldwide are pushing towards international expansion to diversify their revenues, manage risks, and access new talent."
"The global landscape is increasingly unpredictable, and the red tape around new markets can be daunting."
"Our research found that the key tool that companies can have in their playbook is access to a network that can open doors and reduce this uncertainty."