A new global study by HSBC reveals more than two-thirds (69%) of the world’s fastest-growing companies predict their international earnings will eclipse domestic earnings by 2030.
This finding should resonate locally in the islands, according to Olivier Dardilhac (pictured), Interim Head of Corporate and Institutional Banking, HSBC Channel Islands and Isle of Man.
According to the report, entitled ‘A Global Advantage’, while overseas revenues currently represent less than half of these companies’ income, business leaders believe expansion into overseas markets will generate the lion’s share of their earnings within the next five years. The survey suggests that businesses believe a key factor determining whether they are successful will be their ability to navigate mounting uncertainty.
The study involving 1,143 senior decision makers from mid-market enterprises (MMEs) across ten countries, including the US, UK, UAE, and India, also highlights how 77% of executives view international expansion as more important than five years ago, with many looking to emerging markets as the key driver for growth.
Two-thirds (60%) of the leaders polled are considering global growth to help spread the risk in an increasingly complex economic landscape, and 64% believe global expansion will deliver economies of scale long-term.
Commenting on the study’s finding, Olivier said: “As businesses navigate an evolving trade environment, this research highlights the critical role of cross-border trade in driving long-term success. There is clear relevance for the Channel Islands and Isle of Man here, as centres that have developed stable and certain platforms, global capabilities, and significant expertise in facilitating international capital. These qualities can be hugely attractive as businesses pursue their growth strategies. At HSBC, we are committed to supporting those businesses as they expand globally, helping them unlock new opportunities and build resilience in a world that is changing.”
Jason Talwar, Adjunct Lecturer of Engineering at Brown University, who led the study, said: “Companies worldwide are pushing towards international expansion to diversify their revenues, manage risks, and access new talent. The global landscape is increasingly unpredictable, and the red tape around new markets can be daunting. Our research found that the key tool that companies can have in their playbook is access to a network that can open doors and reduce this uncertainty.”
