Erica A. Murray
While the scenery of many of our metropolitan cities is inundated with colossal corporate office buildings with individuals hurrying in and out, there is a false illusion that is presented about the American economy! There is a belief that Fortune 500 and 1000 companies hold the entire workforce within the palm of their hands. This ideology is so far from true and there is something grossly wrong with this hideous perspective. In essence, the ultimate backbone of the economy in most countries is small and medium- sized enterprises (SMEs). With that stated, it is imperative that these companies aggressively assert themselves into the international market to create sustainability and to remain competitive amongst their counterparts. Wealth creation, economic activity, innovation and employment are all a part of the focus as to why small firms and start-ups are important. Did you know that small businesses actually employ 49% of the private sector workforce in the United States, and 40% to 50% in other countries? The smallest companies in the world are the ones with the greatest power and impact! Small businesses with fewer than 500 workers account for half of the nation’s private, non-farm real gross domestic product (GDP), and half of all Americans who work in the private sector are employed by small firms (SBA, 2009).
Today these firms must focus on globalization – increasing their involvement in international markets, if they don’t want to see the doors of their businesses closing within the next 10 years. Internationalization is a strategy that should be utilized by small businesses to increase resources. In comparison to larger enterprises, SMEs are considered to be resource-constrained, theoretically! On the contrary, SMEs are not limited at all to expanding to the global marketplace; actually they have more resources available to them then they realize. The soil and terrain has already been cultivated for them via the information super highway. The internet and computer technology has done what no one could have foreseen over 30 years ago, tremendously condensed the distance between individuals around the world! It is now up to the business owner or entrepreneur to capitalize on this phenomenon by utilizing the resources they possess effectively. Social media sites, Skype, and Oovoo to name a few are perhaps the most cost effective means by which one may tap into the global paradigm. Cross country expansions are taking place in record numbers through acquisitions and partnerships, even for SMEs. The question that is probably at the forefront of the minds of business owner or entrepreneur is where do I start and how do I know if my business is ready to expand around the world? I would like to suggest a few tips. The first and most important step is to critically identify if there is a need for your offerings in the region you would like to expand. Then analyze and vet your services or products. Ask yourself are my products or services good, great, or exceptional? Then compile a small survey with a diverse group of individuals to obtain unbiased feedback to ensure that your results are not tainted. Next, consider the benefits of your products or services and how may they be improved…be HONEST! Compare the advantages and disadvantages. Finally consider how you can strategically position your products or services through effective pricing globally! Then consider hiring an international business consultant to assist you in developing and devising a strategic plan to tackle the market! Then execute your plan!
Erica A. Murray is an International Business Consultant and is the owner of a boutique consulting firm, Erica A. Murray Consulting and may be reached at 800-580-2113 x 2200 or you may visit her websites (www.ericaamurray.com or www.ceotothepowerofyou.com).
