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Exports

MSME Export Performance: Do Trade Barriers Matter?

Strategic Insights

— 1 min read

Trade policies significantly impact the export potential of Micro, Small and Medium Enterprises (MSMEs) in emerging markets. According to a recent study published in the Srusti Management Review, MSMEs face various trade barriers that hinder their export activities. The research found that despite the presence of trade barriers, the association between these barriers and export performance was insignificant. The study administered a questionnaire to 394 MSMEs involved in exporting to emerging markets and identified six key trade barriers: Market Access, Market Entry Barriers, Infrastructure Limitations, Regulatory Constraints, External Barriers, and Operational Trajectory.

Key Takeaways:

  • The study highlights the importance of understanding the impact of trade policies on MSME export capacities to enhance their growth and global competitiveness.
  • The research identified six key trade barriers faced by MSMEs, including Market Access, Market Entry Barriers, Infrastructure Limitations, Regulatory Constraints, External Barriers, and Operational Trajectory.
  • Despite the presence of trade barriers, the study found an insignificant association between these barriers and MSME export performance.
  • The study utilized factor analysis and Chi-square tests to investigate the correlation between trade barriers and export performance.
  • The research concluded that trade barriers collectively hinder export activities in emerging markets.
  • The study suggests that government assistance and free trade agreements may have a positive impact on MSME export capacities.
  • The research emphasized the need for policymakers to understand the complex relationships between trade barriers, market conditions, and MSME success in overseas markets.

Statistics:

  • 394 MSMEs were involved in the study, making it a comprehensive analysis of MSME export performance.
  • The study found that 60% of MSMEs face Market Access as a major trade barrier.
  • 55% of MSMEs cited Market Entry Barriers as a significant challenge in exporting to emerging markets.
  • Infrastructure Limitations were cited as trade barriers by 45% of MSMEs participating in the study.

Sources:

  • MSME Export Performance: Do Trade Barriers Matter?. Srusti Management Review, 2025,18(I):149-162.
  • Science Letter, August 1, 2025, p 116.
  • https://doi.org/10.63340/samt/10010

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