Description
The Impact of Globalization on Small and Medium Enterprises (SMEs): A Mixed-Methods Study of Growth Opportunities
Abstract
One of the significant drivers of business transformation is identified as globalization. This is considered especially for small and medium-sized enterprises. In an integrated world, SMEs are facing not only opportunities but also huge challenges from growing competencies and diverse consumer needs. Moreover, advances in information and communication technology enabled SMEs to access tools and platforms that exist in the hands of large enterprises. For example, SMEs are certainly reaching customers across the world without the need to invest huge capital compared to international trade. In addition, the current study responds to the central question of how SMEs can leverage the benefits of internationalization to improve their growth prospects.
Previous studies have confirmed that globalization is a major determinant of SME performance, but the specific strategies SMEs use to succeed internationally remain unclear. This study uses a mixed-methods approach by combining qualitative interviews with SME owners and industry experts. For instance, it acquires insights into their strategies and perceptions of global development. The quantitative element reviews the responses given by a larger sample of SMEs in a survey. Therefore, it determines the prevailing trends in growth and financial performance through the correlation of statistical techniques.
The results reveal that internationalization offers unique growth opportunities, including accessing new markets and collaboration through cross-border partnerships. Moreover, it consists of barriers such as increased competition and a demand for technological savvy. The study fills a significant gap in existing literature and provides valuable insights into how small businesses can navigate the challenges. Specifically, it states how to capitalize on the favorable conditions of globalization by offering practical recommendations for SMEs. Overall, the study underscores the importance of strategic adaptation in the global landscape. Finally, it provides a roadmap for SMEs aiming for sustainable growth in the face of international complexities.
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