Small and Medium Sized Enterprises and the Risks they Face in an International Environment

Small and Medium Sized Enterprises and the Risks they Face in an International Environment Essay example
Masters
Essay
Finance & Accounting
Pages 10 (2510 words)
Download 0
Small and Medium Sized Enterprises and the Risks they Face in an International Environment. Introduction: Small and Medium sized Enterprises or SMEs generally function in the economy’s formal sector, and it employs chiefly wage earning workforce, and involve in the organized markets…

Introduction

In proportion to other trends of globalization, small and medium sized Enterprises are increasingly occupied in international businesses. “Foreign investments by small and medium scale enterprises have also increased” (Feyter 2011). SMEs account for a major share of exports and imports and go up to international network of production. “Small organizations have very little, if any, influence over the forces of external environment, and this can be attributed to the limited resource of the small firm” (Sha n.d). As SMEs try to internationalize, they frequently come across extensive hurdles. These hurdles are complex, and they can be from the larger, external, business environment of SMEs including barriers of trade policy; or from the internal environment of firms. “Currency fluctuations are the top concern for 49% of UK SMEs” (International Trade: Confidence Concerns and Risk for UK Smes). The various risks that small businesses face when they engage in the international trade include credit risk, interest rate risk, country risk, and currency issue. Credit Risk- SMEs regularly complain that their competitiveness and growth are restricted by lack of access to the financing and high cost of credit. ...
Download paper
Not exactly what you need?

Related papers

An evaluation of the suitability of the Istisna contract to financing small enterprises
These banks offer services based on religious teachings and laws. The banks continue to provide innovative financial products aimed at filling the existing gaps in the financial industry. These banks have used a philanthropic approach, adopted from Islamic teaching, to offer high quality services to customers. One of these approaches has been the Istisna contract. Based on the Sunnah of the…
Small & Medium Sized Enterprises in an International Environment
443). 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 (Gankema, Snuif…
The Importance Of Financing Smes In Oman - Government Intervention
It is so because the business environment in Oman is different from that of the western countries. Hence, to examine this argument, this research study focuses on the internationalisation approaches followed by the Small and Medium-sized Enterprises (SMEs) in Oman. The decision makers of four SMEs in Oman have been interviewed in this research study. The collected data from the interviews and…
IFRS for Small & Medium Entities
Moreover, adoption of IFRS by all the SMEs shall not only facilitate commonality among national SMEs accounting standard but it shall also facilitate in harmonisation of SMEs accounting standard across the world (Pascu & Vasiliu, 2011) Primarily the objectives of IFRS for SMEs have been to support its accounting and financial reporting system as well as dramatically meet the basic financial…
The need of IFRS and the Problem of adopting it for UK Small and Medium Enterprises
It is tough to bring such a radical change in operational as well as financial aspects for these SME. These radical changes are not without their associated dangers and risks. This research paper tries to elucidate the benefits and the problems of adopting IFRS for SME and provides suggestion of adopting a middle path between benefit and associated risk. Table of Contents Table of Contents 3…
A review of academic research undertaken in relation to Small and Medium Sized Enterprises.
5. The act focused on increasing the enterprises’ production outputs, increasing revenues and profits. 6. Small and medium enterprises reduce London’s Unemployment rate. 7. Small and medium enterprises are either sole proprietorships or partnerships. 8. Small and medium enterprises have less than 250 employees. 9. Small and medium enterprises are profitable business ventures. 10. U.K.’s…
hallenges and potential advantages in adopting the International Financial Reporting Standard for
Besides that, the users of the financial statement of the SMEs are also benefitted from this, since the information provided can be compared with the international standards as the SMEs are also seen to deal with the venture capital firms, credit rating agencies, customers, suppliers, financial institutions and investors who are operating outside the home countries of the SMEs. However, the extant…