Limitations for Sme Internationalisation

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Table of Contents Literature review 3 SME internationalization 6 Barriers 8 Internal barriers 11 External barriers 17 Conclusions 20 List of literature 22 Literature review The first article I used was "SMEs' Barriers Towards Internationalization and Assistance Requirements in the UK” published in Journal of Small business and Entrepreneurship. Existing studies have identified a number of barriers, both perceived and actual, that affect firms’ internationalization. Arguably, these factors have primarily been identified via an exporting perspective that has tended to feature heavily in previous studies in comparison to firms engaged in multiple modes of market entry (joint ventures, licensing, etc.). This paper reports…show more content…
These constructs include firm's specific barriers, institutional barriers, foreign market industry barriers, and lack of government support. Foreign market industry barriers and lack of home government support were seen as factors distinguishing between successful and unsuccessful exporting firms. SME internationalization By definition, SMEs are “small and medium-sized” enterprises. The most standard classification of SMEs is by number of employees although sometimes revenues are also used. Many SMEs are of a stable size and are content to remain small. Firms in this category include many family businesses, most sole proprietorships and many other micro, small and medium sized firms. While SMEs are clearly a large and critical part of most economies around the world, SMEs differ greatly in their growth orientation. The term “SME”, which describes a firm’s size, is therefore not adequate for measuring entrepreneurship or anticipating internationalization of firms. Growth orientation as well as both the inclination and ability to internationalize are important characteristics in SME internationalization. Entrepreneurs can actively compete in the international market through five avenues: exporting, importing, joint ventures, direct foreign investment, and licensing. Further I will analyse all the options. * Exporting When an SME entrepreneurial
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