International business competence in SMEs

by

TABLE OF CONTENTS

Background of the study1

Problem statement1

Aims and objective of the Study2

Importance of solving problem3

Literature Review4

Methodology6

REFERENCES8

BIBLIOGRAPHY10

APPENDIX12

INTERNATIONAL BUSINESS COMPETENCE IN SMEs

Background of the study

As a United Kingdom entrepreneur, manager, or business professional, opportunities are always sought to increase the profit margin, both domestically and internationally, amid increasing competition and obstacles. Interestingly, firms are finding it necessary and worthwhile to compete in the global economy; failure could be detrimental to the firms' success and the UK economy. Thus, in today's global economy, small business enterprises, medium-sized businesses, and even large corporations, face the challenge of how to compete in the world economy. The globalization process, involving markets and production, has continued, while shifting the terms and conditions that determine international production and markets, thus ensuring the shift toward a more integrated and interdependent world economy (Contreras 2008 pp.50-51).

Problem statement

This study examined the extent to which six selected factors (impediments and incentives) determine the participation of United Kingdom small businesses enterprises in business in Malaysia. The selected factors were social, legal, economic, political, technological and regulatory and institutional/actors (SLEPT). Specifically, the study sought to determine the importance of these six factors in decisions of small business enterprises (SMEs) to engage in exports to Malaysia. The researcher identified factors from the literature and surveyed UK small business enterprises to access the efficacy of those factors as critical core elements for conducting business with Malaysia.

These six categories of factors (impediments and incentives) were quite repetitive in the literature, and thus were deemed "core" factors to be considered in doing business with Malaysia. Therefore, this study examined the extent to which core factors (social, legal, economic, political and regulatory and institutional) were considered by UK small business enterprises that engaged in international business operations with the country of Malaysia (Gracia 2006 pp.36-38).

In examining the extent to which the six selected factors (impediments and incentives) determine the participation of United Kingdom small businesses enterprises in business in Malaysia, a review of relevant professional literature, including sources provided by the Department of Commerce (DOC) and the Small Business Administration, was conducted.

The mission of the DOC is to engage with countries for the development of small businesses worldwide. It does this against the backdrop of promoting UK competitiveness in the global marketplace by stimulating export companies to export more. Thus, recognized directly or indirectly, the functioning of the DOC gives direction in identifying feasible options for trade between Malaysia and UK small businesses.

Aims and objective of the Study

The main goal of this dissertation is to examine how small and medium sized enterprises from emerging economies become competitive internationally, in particular UK. This study examines the performance of SMEs and its international marketing strategy is discussed focusing on the marketing strategy and persisting trends in the market, which has seen a tremendous growth in contemporary times due to the presence of potential competitors, striving to make their mark in the ever-growing industry.

Importance of solving problem

In UK there is a growing recognition that ...