The measurement of export readiness of companies in South Africa

Abstract

In order to stimulate economic growth and to increase employment and specialisation, governments all over the world attempt to grow their countries' exports. However, in South Africa many companies are experiencing difficulties in entering export markets and being able to sustain export growth. A possible reason is that the companies are not export-ready before they attempt to expand their position into foreign markets. Export promotion programmes are based on the results of companies completing export readiness questionnaires. In South Africa, it was found that the questionnaires that were used were not scientifically designed and the outcomes did not result in convincing evidence of the export readiness of the companies evaluated. This study aimed to develop an export readiness questionnaire, to be used by TISA (Trade and Investment South Africa), in which the questions are statistically tested and compiled to highlight the weaknesses (development areas) of potential exporters. The results of 30 questionnaires were statistically analysed, and four areas of particular concern for new exporters were identified. A new, statistically verified questionnaire was developed in order to assist TISA to identify specific areas of development needed, and to focus their efforts to assist potential exporters in South Africa to become more competitive and successful exporters