Small & Medium Sized Enterprises in an International Environment Essay

Small & Medium Sized Enterprises in an multi soilal Environment - Essay ExampleCenter of discussion in this paper argon atomic and medium sized businesses that ar imperative to the economy of a country mainly for their roles in blood line creation, innovation and technological advancement. In recent years, microscopical start-up and even thinest of businesses, particularly those from the high-technology industries ar world-wideizing at an increase rate. Most of the small businesses are launched with a plan of conducting cross-border business activities. Within the free trade partition of European Union, more efforts are put in to unite the countries both economically and politically and this transformation has made tremendous changes in the international business contexts. For small and medium sized businesses, it has become easier for them to go their business activities globally, bringing newer opportunities as well as threats. Basically, there are three approaches to t he 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 by dint of the export as primary mode of entry to some other 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. ... ternalization of small businesses occurs through developing successful networks of business relationships to facilitate global business operations (Hynes, 2010, p. 90). Born Global firms are those small businesses that are launched with cross-border business activities in mind (Longenecker, Moore, Petty and Palich, nd, p. 443). In recent years, small businesses that are launched with a view to gradual ly internationalize the firms activities and this has tremendously impacted the roles that are compete by the small business in international business contexts. Importance of Small Businesses in International Business Contexts Small Businesses as Engine for Job Creation Out of the 30.23 million businesses in the linked States, around 99.7 percent as accounted to be 30.14 million are considered as small businesses (Scarborough, 2011, p. 23). Though they are generally termed as small as they employ fewer than 100 employees their contribution to the economy is great both nationally and internationally. Small and medium sized businesses employ more than 51 percent of the nations total private sector workforce, but the assets these small businesses posses are considerably less than bombastic multinational and other businesses (Scarborough, 2011, p. 23). Small businesses are critically important to the economy of a country and the international economy in general due to the roles it p lays such as job creation, innovation, long term branch etc. Malchow-Moller, Schjerning and Sorensen (2009, p. 16) asserted that entrepreneurs, especially of the small businesses, are widely believed to play pivotal roles in legal injury of job creation and wage growth. The father of entrepreneurship, Schumpeter, explained this concept through creative destruction as entrepreneurship supersede