Barriers In Global Business

SME’s are an integral part of the global business environment and provide the opportunity for entrepreneurs to succeed in today’s flexible and dynamic environment. There are many barriers which prevent SME’s to internationalise. This literature review will analyse and evaluate the barriers which are critical in a specific industry. The most important corporate strategy for SME’s looking to grow and expand is to internationalise. Due to the advancement of technology through social media and the assimilation of local economies, the global economy has been able to synthesise these two factors in order to encourage and motivate business to internationalise. However SME’s still face many barriers and challenges in the process of internationalising …show more content…
These can include finding the right agent who are specialised in that particular industry. In the case of the tech sector , essence is an digital marketing agency and the largest buyer of media worldwide. This company have many similarities to rega in which they operate in the tech industry. They both are dynamic and innovative. However they are both at different stages of the industry. Essence is more focused on digital advertsing and marketing while rega is focused on manufacturing. Digital advertising has become more prominent so ensuring relevance is important. SME’s will find it easier now to advertise globally due to modern technology than in the past as the variety of platforms and devices has increased. Creating an initial interaction with the consumer is key in developing a long term relationship. Essence have now many offices around the world in which they can access a variety of clients from various background. There is likely to be cultural and language barriers as they expanded globally but by ensuring they have an diverse workforce will mitigate any potential …show more content…
Exporting is the most common strategy as it’s the most cost effective and efficient and leads to sustained levels of growth in the future. Many SME’s in the tech sector looking to internationalise will choose export as method of entry as its less complex than having a foreign subsidiary. Tech companies also will benefit by exporting as they are reaching their market directly while maintaining their production domestically is an advantage. However, I believe the technology sector still have issues over internationalising especially in the case of the UK. Many countries around the world don’t have the infrastructure capable of supporting products and services from developed nations like the UK. This barrier maybe hard to overcome as some product may need specific requirements which aren’t available worldwide. So the idea of internationalising through the entry modes of exporting maybe counterproductive as the infrastructure isn’t sustainable. Many SME’s in the tech sector are looking to internationalise especially in countries where technology is still yet to develop. This can be seen as opportunity due to the unforeseen potential that developing econmies may present. The barriers SME’s must overcome are that investing to internationalise in these economies require large amounts of capital in which many cases SME’s lack financial resources to do so. Governments in these