To achieve continuous growth, it is necessary and important to focus on internationalization, especially if it is a technology-based startup. The ticketbis company carried out a study that shows some important data of the growth of the European startup as a result of the internationalization.

This study is done every year, and this is the third consecutive year. It consists of analyzing the main newly created companies, and their internationalization process.

Approximately 14 countries are currently operating European startups, and 82% have started the process of internationalization in 1 year or 2 since its inception, which is clear evidence that expanding markets is a necessity.

Needs for internationalization

The main reason for internationalization for a technology-based company is the scalability of the business model and the technology used, as well as the global scope of the project and the identification of the countries with the greatest potential for growth.

But there's other reasons:

Proactive reasons for expanding

1. Technological advantage

2. User growth, metrics and scalability.

3. Personal engagement of members of the board

4. Expectation to make a profit from operations in foreign markets

5. Awareness dispose of a unique range of products

6. Expected by management of a company tax benefits

7. Special knowledge about foreign market and customer

8. Expected economies of scale and experience effects

Reactive reasons for expanding

1. Competitive pressure and internationalization of competition.

2. Domestic market saturation.

3. Overproduction of industry and company.

4. Decline in sales of companies products on domestic market.

5. Excess production capacity in the industry and company.

6. Nearness of foreign customers and international ports.

7. Internationalization of domestic clients.

How Global Are You?

To realize the full potential of globalization, you first need to assess where your industry falls along the globalization spectrum; not all sectors of the economy face the same challenges or opportunities at the same time. To measure how global your industry is, calculate the ratio of the annual value of global trade (which includes trade in product components as well as final goods) to the annual value of industry sales.

Ratios over 100% indicate industries that are very global.

Practical solutions

You can find the list of regulations and requirements set up by the BIS on-line along with a step by step process of how to apply for a license in United States at http://www.access.gpo.gov/bis/ear/ear_data.html. Here they give you many helpful tips and hints on how to speed up your license request process.

Works Cited

“How to Start an Import Export Business.” Entrepreneur.com. 28 Oct 2008 <http://www.entrepreneur.com/startingabusiness/businessideas/startupkits/article41846.html&gt;.

“How to Start an Import Export Business.” Home Business Center, Inc. 28 Oct 2008. <http://www.homebusinesscenter.com/how_to_start/importexport.html#a&gt;.

“Letter of Credit.” Wikipedia.com. 01 Nov 2008. <http://en.wikipedia.org/wiki/Letter_of_credit&gt;.

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