Most Australian businesses that have expanded into Asia have experienced profit lifts, with almost 40 per cent of small businesses making a return on investment within a year, according to a report.
The ANZ Opportunity Asia survey of more than 1000 Australian businesses in August–September this year found that companies active in Asia believe they are far more likely to achieve long-term growth than their counterparts who are domestically focused.
The report shows these companies are now reaping almost half of their revenue from outside Australia and have substantially improved profitability since expanding operations. Of those Australian businesses surveyed, 35 per cent have operations in Asia, while 20 per cent are planning their expansion strategies.
“There is clearly a huge opportunity for Australian businesses to grow and prosper by trading with Asia. We found the biggest misconceptions for those looking to expand into Asia are the process is complex, they don’t have the capital and they’re unsure of short-term viability,” said Mark Hand, ANZ Managing Director, Corporate and Commercial Banking.
“No doubt there are risks; however the findings of this report demonstrate that not considering the opportunity may be even riskier.”
More than three quarters (76 per cent) of businesses surveyed who had expanded into Asia said their profits had increased substantially or will increase in the future.
In addition, 38 per cent of small businesses surveyed who are doing business with Asia said they achieved return on investment within 12 months, while 59 per cent of medium and 39 per cent of larger sized businesses accomplished this within three years.
For More Australian Manufacturing News Click Here