The presented paper aims to reveal internationalization barriers and motives of Lithuanian small and medium size enterprises (SMEs). The perceptions of internationalized and non-internationalized firms were assessed. The present study applied a survey method of data collection. Profit goals and networks are seen as the main drivers of internationalization. However, intense competition abroad was seen as the most significant factor, hindering expansion of firms. The assessment of strengths revealed the difference between internationalized and non-internationalized firms. The availability of advantageous products and services in domestic markets was seen as important factor for internationalization. The findings of the survey led us to elaborate implications and policy measures.