Expanding your business internationally is an exciting opportunity—but let’s be honest, it comes with a hefty price tag. For micro, small, and medium enterprises (MSMEs) like yours, finding the right funding to scale globally is often the biggest challenge. It’s no surprise that a lack of financing is one of the main reasons international expansions fail. According to a Harvard Business Review analysis, businesses often underestimate the true costs of entering a foreign market—from regulatory compliance to logistics. Without deep financial reserves, MSMEs are particularly at risk of stalling before they can take off.
The good news? There’s a wealth of funding options, grants, and investment opportunities designed to help businesses like yours succeed globally. In this blog, we’ll dive into practical, proven ways to secure the financial support you need to take your business across borders confidently and sustainably.
The Funding Challenges Faced by MSMEs
When you’re running an MSME, the financial hurdles of global expansion can feel overwhelming. Despite contributing 70% of global employment and 50% of GDP, MSMEs—especially in emerging markets—face a staggering $5 trillion funding gap every year, according to the World Bank. It’s a tough playing field. Larger corporations have the resources to weather hidden costs, but you might not have that luxury.
Even if you’ve planned your budget carefully, unexpected expenses can derail your expansion plans. For instance, a report by Wise revealed that MSMEs lost £3.6 billion in hidden international transaction fees in 2022 alone—forcing many businesses to abandon their global ambitions before they could see results.
On top of this, traditional lenders like banks often view MSMEs as “high-risk” borrowers. Why? Limited collateral, inconsistent cash flow, or shorter credit histories make it harder for you to access loans. And even when financing is approved, you’re likely to face higher interest rates, eating into your margins. Investors, too, tend to favor larger, more established businesses, leaving you to fight harder for every dollar of support.
The question remains: where can you find funding to overcome these hurdles? Let’s explore some options that can work for you.
Funding Options for Your International Expansion
1. Export Market Development Grants (EMDG) – Australia
The Export Market Development Grants (EMDG) program provides financial support to Australian MSMEs looking to expand internationally. Eligible businesses can receive matched funding for marketing and promotional activities under three tiers: Tier 1 (up to $30,000 annually) for those new to exporting, Tier 2 (up to $50,000 annually) for expanding exports in existing markets, and Tier 3 (up to $80,000 annually) for diversifying into new markets. To qualify, businesses must have operated for at least two years, meet annual spending requirements, and for Tier 1, complete export training.
Case Study: Frank Body
Frank Body, an Australian skincare brand, used EMDG funding to attend trade fairs and ramp up global marketing campaigns. The result? They secured a distribution deal in Japan, expanded across the US and Europe, and saw their export revenue jump by 40% in the first year—transforming them into a globally recognized brand.
2. CanExport SMEs Program – Canada
Canada’s CanExport program offers up to 50% cost coverage (capped at CAD $50,000) to help Canadian SMEs explore international markets. Eligible activities include market research, trade missions, and digital marketing. To qualify, your business must have fewer than 500 employees and an annual revenue of under CAD $100 million.
Case Study: Steam Whistle Brewing
Steam Whistle Brewing, a Canadian craft brewery, tapped into CanExport funding to target the US market. They used the support for trade fairs, online advertising, and partnerships with US distributors. As a result, their brand visibility grew across key American cities, and they secured valuable export contracts.
3. SME Instrument Program (Horizon Europe) - European Union
The SME Instrument Program, part of the EU’s Horizon Europe initiative, offers targeted support to innovative MSMEs ready to scale internationally. Grants range from €50,000 to €2.5 million to help businesses with product development and global commercialization—giving you the resources to turn innovation into international success.
Case Study: BeePlanet Factory
BeePlanet Factory, a Spanish SME specializing in second-life batteries, secured €1.5 million through the SME Instrument Program. The funding allowed them to adapt their sustainable energy solutions for Latin American markets, focusing on product innovation and meeting regulatory requirements. As a result, BeePlanet expanded into new regions, strengthened its competitive edge, and established itself as a leader in the clean energy sector.
4. International Finance Corporation (IFC)
The IFC, part of the World Bank Group, provides loans, equity investments, and trade finance to MSMEs—especially in emerging markets. Their programs are tailored to help you scale production, address trade barriers, and reach new markets.
Case Study: AA Corporation
AA Corporation, a Vietnam-based SME specializing in sustainable wooden furniture, partnered with the IFC to upgrade production facilities and expand exports to Europe. With improved capacity and market access, their export sales grew by 60% in just two years.
Conclusion
Expanding your business globally is a thrilling opportunity to grow your reach and revenue—but securing the right funding is key to making it happen. While the challenges are real, grants like Australia’s EMDG and Canada’s CanExport, along with financial institutions like the IFC, are designed to help businesses like yours succeed on the global stage.
The world is waiting for what your business has to offer. By tapping into these funding opportunities, you can expand confidently, sustainably, and successfully.
