UKSMEs' decision to discontinue exporting: an exploratory investigation into practices within the clothing industry

Although the decision to internationalise has been viewed in certain studies as an entrepreneurial act, research has also indicated that some firms may be better served in concentrating on their domestic market, depending on a number of internal and external considerations associated with the profitable exploitation of identified opportunities. This investigation reports on first, reasons why a sample of executives from small firms discontinued export activities and second, perceptions towards policy assistance that may motivate them to recommence overseas activities in the future. Analysis in this study establishes that differences exist between two distinct groups of firms, namely, those indicating their discontinuation of exporting was a short-term measure compared with those that viewed the decision as longer term. Entrepreneurial learning was found to be present in firms that influenced some managers to overcome identified obstacles and engage in alternative modes of international activity to the export route, whereas others decided to pursue domestic opportunities. The study provides recommendations for policymakers in the provision of trade assistance programs. (C) 2003 Elsevier Inc. All rights reserved.