Identification of the Key Risk Factors of the Internationalization Process of SMEs Operating in the Textile Industry

Abstract

The aim of this paper is to identify the key risk factors of the internationalization process of Czech SMEs operating in the textile industry. To reveal the key risk there was conducted the survey (2011–2012) among 803 Czech SMEs operating in the textile industry, 161 responses were processed. The obtained data were analyzed by statistical methods. Potential risks of entry into foreign market were rated according to their impact on businesses. The greatest influences on the process of successful internationalization have, according to obtained responces, following factors: shortage of capital, lack of the information on foreign markets and high transportation costs. Other factors that may impede the successful internationalization are language barriers, inexperience of management with the internationalization and high prices of products. Knowing the key risk it is easier for SMEs to manage it.

Keywords

• internationalization
• small and medium-sized enterprises
• crucial key factors
• internationalization process
• textile industry