In: Accounting
Describe four principal drivers of global business participation for small business
The four principal drivers of global business participation for small businesses are highlighted below
(1) Policy Change : Governments across the globe are now seen pushing for exports via small businesses through their trade policies like export subsidies which acts as a catalyst for the small businesses to go out of their comfort zone and explore new internationa ventures
(2) Structural Barriers : There used to be a time when there existed significant structural barriers, especially for the small businesses which hampered their global growth (for instance, payments risks). With various government coming up with trade deals to ease out exports and with availability of various payment mechanisms like online credit letter, cards etc small business can now dare to venture globally
(3) Cultural Changes : With passing time and increased global connect, there seems to be a homogenization of consumer preferences which acts as the biggest catalyst and provides a platform for small businesses to showcase their offerings at a global level.
(4) Market Size - With the ever expanding global economies, there exits sufficient opportunities for all sorts of businesses to explore the unexplored. In addition, the growth in the disposable income has spurred the demand for consumer goods in particular which provides a big incentive for smaller businesses