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Small business should ready to face globalization

Rabisankar Bhattacharjee
“Struggle for existence” and “Survival of the fittest” are two stepping stone theories given by Charles. R, Darwin while contributing in Biology, but in this era of free trade and high technology, it is found that the necessity of those two theories are very much in the area of global economy. Why it is like that? We have enough utensils and models to explain the concept of today's economy! Well if we want to know why this two biological explanation are so important in today's economy than we should pull the globalization under microscope. Because of the LPG factor each and every day some big corporate giants are getting a chance to enter in new geographical area, simultaneously acquisition has become day to day activity for them, and the victims are none other than the SMEs and tiny industries. In this sorts of situation it is lucid clear that if the industry don't have sound business strategies, they can't survive in this global market. So here we can easily understand the importance of survival of the fittest. The fight - for - your - life attitude caused by extreme uncertain times along with the explosive growth of internet has leveled the playing field and emancipated the entrepreneurial and small business process. But is it all worst? No ray of hope exists? Is globalization become a curse for the small business entrepreneur?  We try to find out those answers with the help of some explored facts.

The valiant new worldwide economy of ours offers unrestricted export opportunities for entrepreneurs and small business. International trade amplifies sales and profits, boosts companies' kudos, constructs jobs and offers a precious way to echelon seasonal fluctuations. Regrettably many entrepreneurs and small business think that going global is too convoluted and confusing. Small business and entrepreneurs need rally round in navigating through these radical times and intensifying internationally. They are a huge group that has soared 75% in the last 20 years to 23 million. The combined economic value of America is staggering.

Small Business and entrepreneurs - are they having enough guts to join the global tributary?
There is an English proverb “from small drops of rain can built the ocean”. If we consider SMEs are too small to survive than may be we ignore a huge potential area of business. Because Small business and entrepreneurs represent a powerful force both in the traditional and the new global e business marketplace, as evidenced in the following data points:

There are more than 230,000 small businesses exporting in the United States alone.

The number of small business exporters rose 250 percent from 1987 to 2001.

About one of every five U.S. factory jobs depends on exports.

Exports mean new customers and more than 95 percent of the world's consumers live outside the United States.

Small businesses with fewer than 500 employees export roughly U.S. $182 billion a year or 29 percent of all exports.

Despite these compelling numbers, small businesses have not yet fully realized their potential for global trade. Only about 10 percent of small businesses are involved in the global marketplace. Research indicates unique reasons why businesses have a difficult time going global. They lack knowledge, resources, technology, incentives, support, brand recognition, competitive pricing and, in some cases, the initiative. Although these arguments are tentative, they are indeed a reality and must be taken into account when addressing how small businesses and entrepreneurs can best realize their potential in the global marketplace.

The good news is, however, that even with inherent barriers, small businesses are well positioned to overcome obstacles and seize the global frontier before them. The facts are given below for support it:

Export data analysis shows that 97 percent of U.S. companies that export merchandise are small businesses.

Web based small businesses are far more likely to communicate and attempt to do business with people anywhere in the world versus those that do not have an online presence.

Entrepreneurs start to go global soon after startup.

Nearly 55 percent of business owners take their first active step toward exporting within two years.

The size of a company does not hinder exporting initiatives because more than two thirds of U.S. exporters have fewer than 20 employees.

Preparation time for entering a first foreign market is minimal, reflecting the opportunistic nature of many first time exporters.

Small businesses going global play an instrumental role in economic prosperity.

Studies show that exporting firms regularly outperform those that stay at home.

Most firms indicate that their product or service lends itself to international markets or customers.

Small businesses not only can compete on a more level playing field, but also can enter international markets with less financial risk.

Raison d'être for going Global!
Small business in particular can take a mentoring role in educating other men and women in going global. They can establish educational programs, conferences and other activities to advance their colleagues, and in doing so, promote professional growth and leadership among all small business owners. The best is truly yet to come.

Increase sales.

Generate economies of scale in production.

Raise profitability.

Insulate seasonal domestic sales by finding new foreign markets.

Create jobs, productivity growth and wealth.

Encourage the exchange of views, ideas and information.

Any small business owner must be adaptable, strategic and willing to take calculated risks. But becoming a successful global small business requires the following commitments:

Be comfortable with change.

Welcome new experiences; and learn as much as possible about the culture in which you are interested in doing business.

Be willing to take risks, even though it may create short term challenges.

Push yourself to continuously innovate.

Stair to success: As with any sound business plan, the first step is doing your homework. Here are ten action steps for taking on the world:

Conduct market research to identify your prime target markets.

Search out the data you need to predict how your product will sell in a specific geographic location.

Update your database rigorously with a view to focusing more closely on those products or services which are in demand and dropping those which are not.

Articulate your business plan for accessing global markets.

Get companywide commitment.

Build a web site and implement your international plan sensibly.

Factor in a two year lead time for world market penetration.

Make personal contact with your new targets armed with culture specific information and courtesies, professionalism and consistency.

Value the relationship more than the deal; the individual is more important than closing the deal under discussion.

Welcome the unknown.

So at the end all are not worse for SMEs but there are also huge opportunities for getting global. So if there is a will there is a way and there is a scope of wining the crown of achievement.  

List of Thesis Title on Marketing:

working women opens large opportunities for marketers

rural customers --- less knowledge is dangerous

explain the reasons for marketing triumphs and disasters

Rabisankar Bhattacharjee is the Faculty Associate & Admission officer in ICFAI University Tripura.