The Opportunities And Challenges Facing Small And Medium Sized Enterprises

The business internationalise means a company’s production and business activity are not only confined to one country, but also integrate the different countries’ raw material and labour and technologies to

In a time of global commerce, new business ventures can take on many forms. What used to be local or even national companies have become world-wide. International growth of a business can be extremely beneficial but is not without its challenges. Different countries have different peoples and different cultures - different ways of doing business altogether. If a venture is to be successful, these differences must be well understood.

There are various companies which try to reach and set up in the international market. Certain establishments find success while other prove unsuccessful. Some enterprises own the ability to open anywhere, nonetheless there holds circumstances in which need further discussions into their overall strategic plan. Also, lots of challenges and options generated through starting a new business abroad will present itself.

Being a small business owner, the success of my business relies very heavily on my employees’ behavior as well as their performance. Since opening my business, it has been a struggle to keep the balance between loosey-goosey and overbearing manager. There must be a proper balance to ensure that the employees are performing where I need them to be but also encourage them to continue to grow with the company as well as, make our customers happy with our service to maintain long standing relationships. Along the way, I have learned that there does need to be a standard practiced by management to keep employees motivated and that their actions are in-line with the company’s values.

Strategic alliance “combine key resources, cost, risk, technology and people” (Williams, 2010). One of the common denominators of strategic alliance is having a joint venture. This is “when two existing companies collaborate to form a third company. The two founding companies remain intact and unchanged except that together they now own the newly created joint venture” (Williams, 2010). Having a joint venture there are many benefits and risk with global marketing. “For a global model to work, global teams need to develop an understanding of local markets and establish a close relationship with local marketing teams” (Griffith, 2012). There are recommendations that should be followed in order to complete strategic planning and commit to the company perspective and

Once an organization has decided to expand into the global marketplace, it must select a method of market entry. Companies may choose from five general options: (1) exporting, (2) franchising, (3) a strategic alliance, (4) a joint venture, and (5) direct investment. Deciding which option is right for an organization is based upon the level of financial commitment, risk,

According to Mann & Byun (2011), the intensity of rivalry within the apparel and clothing industry is perceived by industry growth, product differentiation, industry concentration and diversity of competition. The existence of high rivalry within an industry poses a strong threat to profitability and make the industry less attractive in the long run. Therefore, in order for the nature of competition to be in a positive direction, new entrants may avoid competing in the same market with the incumbent and concentrate on a different market segment, geographical location, offering unique products, services, and brand name. For example, Chloe and Hermes are operating internationally, with 8 luxury product, while Small & Tidmas, Camkids group PLC are operating domestically with different product standard (refer table 4). In summary, as a result of fast growing industry, new players may decide to enter the market in order to take advantage of rapid growth, however, they may face huge rivalry due to exiting firms’ large size, brand identities, huge distribution networks and competitive prices (Mann & Byun

We found innovation, cost reduction and market conditions as key elements supporting a successful internal strategy and strategic alliance and diversification to be among the most widely applied strategies for a foreign market penetration and development, while fusions and licenses were the least preferred.

General analysis (i.e. identification) of factors firms should focus on when deciding whether to internationalise their business via joint ventures, Greenfield sites or acquisitions: (20-30% of marks)

Introduction: Succeeding in international business is a tough job even for the most experienced multinational enterprise; international business has never come at a small price. There are trade barriers; cultural, political difficulties coupled with resource allocation and management strategy issues. In the mist of all these challenges some MNEs especially those from developing countries enter the international business arena with limited resources and experience and they still succeed.

Small to medium businesses (SMB) currently represent a significant portion of the United States economy. In 2016 over one-third of the US population is employed by companies with less than 100 employees. Unfortunately, as reported by the Bureau of Labor Statistics, nearly half of these entities fail within the first four years of operation. As a result, many SMBs are in search of a successful model to guide them beyond sustainability toward profitability. Concerning success for SMBs, in research involving 3,800 SMB leaders, Vala Afshar highlights 6 key benchmarks indicating high-performing organizations:

had increased from 11.2 million in 1990/91 to 17.8 million in 2001. This implies that 650,000 new people had been entering the labour market every year, (URT, 2005). Micro-enterprises tend to be more effective in the utilization of local resources using simple and affordable technology. They also play a fundamental role in utilizing and adding value to local resources. In Tanzania most micro-enterprises use local resources and affordable technologies to undertake their activities, these activities include:

In order to face the challenges of internationalization, entrepreneurs should develop the capability to manage the

With the rapidly growing state of todays start-ups, fostering good overseas partnerships are essential in any business seeking to expand their company internationally. With such expansions, come becoming inter-culturally involved with those partnerships so that both party’s implicated can expand exponentially, building off one another.

This chapter begins by looking at the literature that will give considerable information about Management Accounting and the practices of Small and medium Enterprises, bringing out the interdependence and interrelation of one to the other.