The Influence of Globalization on Small and Medium-Sized Enterprises
| Authors | |
|---|---|
| Year of publication | 2016 |
| Type | Article in Proceedings |
| Conference | Globalization and its socio-economics consequences |
| MU Faculty or unit | |
| Citation | |
| Field | Management and administrative |
| Keywords | Globalization; business environment; small and medium-sized business; expansion to foreign markets |
| Description | The process of globalization leads to establishing the common global economy with free movement of capital, goods, knowledge and services. The liberalization of markets and changing conditions of the world economy offers promising perspectives in international activities even for small and medium-sized businesses, which have their irreplaceable roles in the economies of individual countries and function as major employers persistently stimulating competition, thus contributing to a healthier business environment. Although their major advantage compared to big companies is their ability to instantly adapt to changing market requirements, small and medium-sized businesses have limited access to financial resources, information and knowledge due to their size and position in the market. This results in their reduced ability to respond to various business risks, such as an increase in input prices, loss of key markets, potential legislative restrictions, lack of skilled workers due to limited wage costs and lower image. Since one of the possible alternatives for further development of a small business is its entry to a foreign market, this paper aims to clearly define the impact of globalization on the Czech business environment and identify factors that influence the success of small and medium-sized businesses in their expansion to foreign markets. |