The globalization of the world economy is a reality in which companies in all countries have been living for two decades. According to statistics, more than 50% of all innovative developments appear precisely in small businesses, and globalization, in this case, involves the investment in small businesses and their development by larger entrepreneurs and investors.
Small business and globalization
Today, small business development is based on the following factors:
- Availability of a state support program
- Venture investment
- Business incubators
Emphasis is on the formation of substantial assistance and support for the development of small businesses in the first place. At the same time, a significant emphasis is also placed on providing honourable working conditions. In some zones, even very loyal conditions have been created for the normalized work of entrepreneurs since there is a definite need to improve the economic performance of this or that region.
Thus, globalization is the process of implementing a variety of assistance, which is aimed directly at creating standardized conditions for the work of entrepreneurs. Naturally, at the moment, the sphere of activity of small businesses in the field of innovative developments is actively developing. In this case, individual private investors take an active part in globalization, offering various programs for investing money.
Enhancing small business development
Since small business plays a critical role in developing the entire economy of any country, there is a dire need to activate the interests of potential clients. Business development is provoked by the fact that all conditions have been created for it, and large companies are ready to invest their funds in its development.
In recent years, there has been an intensification of interest in developing small businesses all over the world. It is becoming clear that this business can bring the state to a new level in the global economy. It is in small businesses that many exciting and truly original ideas are born. But, due to lack of funding, such ideas have no prospects for active development. For this reason, in Europe and America, this business is at the peak of development, and it receives assistance not only from the state but also from private investors and large entrepreneurs.
How to help your businesses thrive?
It is a question that only successful entrepreneurs have. An entrepreneur cannot be successful without the desire to constantly develop his business, conquer new business heights and achieve new goals. A company cannot go on a knurled one. Sooner or later, such a business will be at the bottom. Technologies change, competitors change, customers change with their needs, and if your business stands still, it will not meet new requirements. Therefore, it is imperative to grow and develop a business constantly:
- Expand the range of products and services;
- Improve the quality of goods and services and raise the price, as well as take customers away from competitors;
- Attract new customers with marketing and advertising. Use translation equipment in your business to attract clients from all over the world. For example, simultaneous translation equipment will allow you to overcome the language barrier.
- Expand your business – open new points of sale and branches;
- Expand the market through related activities;
- Sell Better – Train Your Sellers;
- Combine different methods;
Risk management system
Even the smallest business depends on changes in the global economy. No doubt, this does not mean that every entrepreneur has to watch Bloomberg all day and become an expert in different fields to predict which direction oil prices will go. There are specially trained people for this. You have to go about your business. To do this, you need to have a well-structured risk management system that will allow you to effectively monitor all types of risks, including global ones.
Remember that the modern economy is just as global as small business needs. Suppose an entrepreneur wants his goods to sell equally well in New York and Milan. In that case, he will strive to enter the Italian market, and, therefore, he will carefully study those peculiarities of doing business inherent in Italy.
In the modern world, the presence of a risk management system is not just a tool for preventing the dangers and threats of a particular enterprise in a specific country. It is a mechanism for promoting a company to its own country and the markets of other countries.
Simultaneously, it is obvious that to enter the markets of other countries, which means that the organization becomes a player in the global economy, the management system as a whole and the risk management system must change depending on the situation and show flexibility and adaptability. Only if these conditions are met can we say that your company is ready to enter the global market and will be able to withstand the impact of the worldwide economy.
Rachel Eleza, Growth Marketing Director at UpSuite and a part-time writer.