Globalization And Small Business Analysis

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In the past few decades, globalization has become commonplace and rapidly risen in our global market. Globalization was used as buzzword to describe a trend of changing in supply chain, workforce and distribution market of all size enterprise from groups to small businesses from local to international exchange. In this essay, we will discuss about the disadvantageous effects of this trend on small size enterprises together with the potential solutions that small firms can face to these impacts.
Firstly, the financial assets is the most challenged issue for small enterprise in globalization scheme due to the aspect of capital and the limit of fund they can approach. In fact, when companies tend to develop and participate in globalization they
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As necessary qualification, small firms need to improve their technology and management skill in order to coordinate with oversea partners. According to (Vijay et al, 2012, p.236) the inadequate resources and training skills make small business difficult to overcome alone. The supply chain in global network could connect many small enterprise together. The most considerable weakness is small firms get difficult in getting their role in this system (Angappa et al, 2011, p.5503). Therefore, the resilience of small business depend on ability of merging into common standard of oversea partners. According to (Angappa et al, 2011, p.5503) these barriers are about the security issue, lack of financial asset and high level management skill. There are many outcomes waiting for small firms as they trying to explore new technique. In fact, the leader of small firms may do not have adequate skill to operate their business. They often start their company because of passion and they are not familiar with academic subject in management and economy (Deo, 2013, p.9) The potential solution for this headache is collaborate with local university and finding support from expert in these fields. As the result, small business can become leading innovation group in global …show more content…
Small-scale businesses have to explore exotic culture in new market and meet competition from oversea companies in domestic wholesale. According to (Angappa et al, 2011, p.5505) tremendous pressure become more recognized as the result of joining of oversea firms in local market. The marketing and distributing product cost in other country is often considerably more than in hometown, it is due to the building their trademark in oversea customer. Moreover, finding suitable partners in foreign countries is not only difficult for small firms but it also hard for them to show their ability to potential partners. (Deo, 2013, p.9) stated that ‘A trusted foreign partner is particularly valuable for a SBE in a global knowledge exchange process’. Apart from them, new markets have exotic language, culture and business operating system which can troublesome small firms in adapting in oversea market. Therefore, only if small firms can take advantage of internet and social networking, they could gain increasing in their brand and finding their suitable offshore

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