Small & Medium Sized Enterprises in an International Environment - Essay Example

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Small & Medium Sized Enterprises in an International Environment

Center of discussion in this paper are small and medium sized businesses that are imperative to the economy of a country mainly for their roles in job creation, innovation and technological advancement. In recent years, small start-up and even smallest of businesses, particularly those from the high-technology industries are internationalizing at an increased rate. Most of the small businesses are launched with a plan of conducting cross-border business activities. Within the free trade zone of European Union, more efforts are put in to unite the countries both economically and politically and this transition has made tremendous changes in the international business contexts. For small and medium sized businesses, it has become easier for them to broaden their business activities globally, bringing newer opportunities as well as threats. Basically, there are three approaches to the internationalization of small businesses; they are stage approach, network approach and the born global approach. Stage approach states that internalization of small businesses occurs gradually from the domestic marketing through the export as primary mode of entry to another country. The network approach states that internalization of small businesses occurs through developing successful networks of business relationships to facilitate global business operations. Born Global firms are those small businesses that are launched with cross-border business activities in mind. ...
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Summary

This paper has explained the theoretical and empirical aspects of the roles that are played by small businesses in economic growth through job creation and innovation. This paper presented various literatures about the roles of small businesses in job creation and innovation. …
Author : taliarippin
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