More Aussie companies are looking to break into China, India and Indonesia, but a lack of knowledge around culture and business practices is still too high of a hurdle for many, according to new research.
Over 80 per cent of domestic businesses active in foreign markets are hoping to expand into new countries in the next two years, a survey of over 1,200 businesses by the University of Sydney found.
Strong growth prospects and a weak Aussie dollar make a number of countries an attractive option for expansion, study co-author Sid Gray said.
But language barriers, differences in negotiating techniques and a lack of knowledge of potential customers are seen as major stumbling blocks to doing business.
"New markets are emerging, including India, with a change in government there, and Indonesia, which is rising in terms of importance," Professor Gray said.
Companies wanting to expand overseas need to make sure they do their homework, with respondents listing the booming economies of India, China and Indonesia as among the most challenging places to do business.
"If you go into Japan or China, you need to understand how to develop relationships there," Professor Gray said.
"With them, it takes a lot longer to build those relationships so you've got to work at that. You can't just fly in and fly out and expect to do business - it's a longer term process."
"The companies who tend to be successful have invested the time and effort into learning about their potential markets and business partners."
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