The Reasons Why Small Firms Would Go International

More and more start-ups are being born global. By tapping resources or serving customers across nations, entrepreneurs can take on larger rivals, chase global opportunities, and use distance to create new products or services. Distances, differences in cultural contexts, and paucity of resources are the main challenges new ventures face. Successful entrepreneurs are clear in their purpose, strike alliances from positions of weakness, are able to manage global supply chains, and can establish multinational organizations from the outset.

There are many challenges for small companies when doing business internationally for example JL Racing had a hard time understanding the buying habits in Europe. In addition to entering into markets to who the customers have already established relationships with other vendors or when a few individuals makes the decision for the whole rowing club in which and sales representative would need to know the bidding process. Furthermore, the difficulty of the owners of a small business entering into business internationally wearing all

For firms seeking growth, overseas markets represent new market segments, which they may be able to serve with their existing range of products. In this way, a company can stick to producing products that it is good at. Finding new overseas

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.

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

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.

8. Governmental regulation. Companies also may face government barriers and heavy restrictions and regulation if they intend to expand into other countries. Therefore, companies must examine governmental—as well as cultural—obstacles in other countries when developing location strategies.

Many companies today want to expand their business to the international business, which can bring cost down and profits up. Taking a business internationally means knowing the rules and regulations of the countries you are entering. There can be many issues with going global which include cultural barriers, diversity issues, multicultural issues, political issues, and economical issues. It is very important to know how important expansion is to the company and what implications will come from going global.

The importance of small and Micro Enterprises (SMEs) in the economy of any country cannot be overlooked. In fact for nearly 15 years, most researchers dealing with economic planning have highlighted the significance of these enterprises stating that they are a key player in realizing any country’s economic goals. As such, governments as well as other organizations with interest in development are laying plans and strategies to promote the establishment of Small and Micro Enterprises. This is seen as a move to ensure that there is full participation of SMEs in the country’s economy. The Small and Micro Enterprises have been known to contribute to a large extend as a source of innovation, entrepreneurial skills as well as source of employment. For example, statistics in 25countries of the European Union show that 99% of the jobs provided to its citizens come from the micro, small and medium-sized enterprises. Rowe (2008) points out that the British economy relies heavily on the participation of SMEs. On the other hand, 99% of the UK’s economy is composed of small and micro enterprises.

Firms pursue an international strategy in order to take advantage of the larger market for potential consumers and buyers of products and services on a global basis, as compared to the limited markets available in the home countries of businesses. In this way, expansion into the international market presents companies with a large scope for growth opportunities (Hitt et al., 2011, p. 219). Firms are also better able to earn a larger gain from their investments due to the larger potential market. Firms are able to ramp up production and other capabilities so that they can achieve better economies of scale and make the same quality products and services more cheaply. There is also bigger scope for performance and for innovation, since a diversity of markets offers a wide range possible strategies for bringing exciting new products to market and attempting new management and business strategies.

As discussed in Chapter 21 of our text book, any company that is looking to expand globally must make five key decisions. A firm must decide if: a) they really want to expand to the international market; b) they

The internationalisation process of the firm has been a subject, which has been motive of study for a number of

If the small firm is actively involved in international trade as are most little firms in specific areas in Europe, case in point then worldwide business is an extremely important subject to study particularly if consolidated with cutting edge European dialects. One of the enormous brakes on the advancement of little firms is the way that a large portion of those that could stretch globally neglect to do so in light of the fact that they fail to offer any staff at administration level with the abilities to help them grow abroad.

Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.