What are the risks of internationalisation?

There are a variety of risks for social enterprises could face when they begin to trade internationally. One risk, which is likely to affect social enterprise to a greater degree than it would main stream business, is limited production capacity. When you consider trading internationally, particularly if it is through e-commerce, you need to make sure that you are able to supply the volume of orders that are coming through. If you are working with a vulnerable group, having a large order in a compact timeframe could result in additional pressure being placed on them, with the potential to impact on their well-being. Social enterprises may also be limited by workshop space to produce the goods required.

The risks that social enterprises face are also likely to evolve over time and so they need to be regularly reviewed. It is possible to review and mitigate against risk during the business planning and the strategic planning processes.