Internationalization of small and medium-sized enterprises

Abstract

Globalization, competition, development of the Internet, strengthening of the role of consumers in the global market, technology development and consumer homogenization contributed to a situation in which national markets have become tight. This is why many companies expand their business activities by finding new markets, which are becoming an important factor in their future growth and development. The rapid globalization processes, economic and political integration, the development of modern technologies and new ways of communication have opened the possibility of the development of small and medium-sized enterprises (SMEs) which constitute an integral sector of all economies and present a major contribution to economic development, in terms of both flexible entrepreneurial ideas and employment. Small and medium-sized enterprises promote private ownership and entrepreneurial skills, and in developed countries they represent the 'engine of economic development', whereas their propelling impact in countries in transition is still insufficient. The comparative advantage of these companies is that they can relatively quickly adapt to changes and meet the requirements of the market. This paper emphasizes the fact that the experiences of developed as well as developing countries indicate that proportional development of companies of all sizes and their integration into the main stream of international economy through the process of internationalization, should all lead to a stable and steady development of economy as the ultimate goal.

Keywords

• competition
• internationalization
• changes
• development
• strategies
• SMEs