Family businesses often mistakenly think that doing business abroad involves too much risk. The opposite is true. The risks actually decrease when expanding across the border by spreading out sales territories.
Companies operating abroad have fared better during the crisis than entrepreneurs focusing solely on the Netherlands. Various studies show that internationally operating family businesses recover faster from the crisis than other businesses. It is also notable that internationally active companies remained more active with mergers and acquisitions during the difficult period.
Mutual differences
Incidentally, it appears that across the board the margins of family businesses have been under pressure over the past three years. The differences between them are great. The agri-food sector scores well above average; they are strongly internationally oriented. Retailers generally score less well. They focus mainly on the Dutch market and run into reduced consumer confidence.
Higher profitability
Nevertheless, many family businesses are reluctant to internationalize for fear of the risks. The studies prove otherwise. With customers across borders, risks are spread. That translates into higher profitability. But beware that internationalization should not be an escape. Family businesses must first have their position in their own country in order before crossing the border.
