The measurement of export readiness of companies in South Africa / S. van Eldik

The improvement of international trade, and therefore increasing exports, ISan important subject of discussion for policymakers. An increase in exportingis seen as critical for the development of any country, by ensuring economicgrowth and development. The literature implies that potential exporters lackthe knowledge of the complexity of exporting their products. It is thus firstlyextremely important for companies to determine whether they are 'exportready' before they attempt any export operation. Therefore companies needto have the necessary factors in place for the company to be able to exportsuccessfully.The overall aim of the study was to indicate how any firm can determinewhether it is ready to export or not by comparing its operations to theessential key factors of export readiness. Therefore, the purpose of the studywas to outline the various factors that are necessary in the operations of acompany for it to be defined as 'export ready'. These factors range frommotivational and organisational factors to target market and productconsiderations. Thereafter the various trade barriers were outlined to informcompanies of the impact these trade barriers may have on their potentialexport activities. These barriers vary from tariff to non-tariff barriers and otherbarriers relating to internal perceptions. In understanding the trade barriers,potential exporters will feel more at ease at attempting to export and will notfeel restricted by them.Government assistance plays an important role in helping companiesdetermine their export readiness and also creating an awareness of tradebarriers. Government promotion in other countries was outlined together withthe assistance provided by the South African government. By comparingthese it became possible to provide clear recommendations to improve therole and quality of South African government assistance.The empirical study was done in an attempt to improve the export readinessquestionnaire used by Trade and Investment South Africa (TISA). Variousquestionnaires from other countries and institutions were examined in order tocreate a pilot questionnaire, which TlSA piloted to 30 potential exporters. Theresults from this was statistically analysed and the results were examined. Byexamining the results as well as the questionnaires from other countries, itwas possible to create a recommended short export readiness questionnaireto be used by TlSA in their programme of assisting potential exporters.The importance of the contribution made through this study lies in theidentification of a limited number of key components to which companiesshould adhere to in order to be successful in the export markets.