Small Businesses Growth

Small Businesses Growth

Growth of Small Businesses

Small businesses are widely recognised as being the major contributors to economic growth, job creation and economic activity in most developed nation countries. Thus, encouraging the growth and success of small businesses are vital to the success of the industries. However, in the aftermath of the various conflicts, which swept the world in the wake of the world recession and war on terror crisis, many small businesses have faced a highly challenging business environment (Andrews, 2008, 67-110). In particular, large amounts of the state aid that was previously used to support small businesses have been diverted to keeping banks and larger businesses afloat in the difficult environment; the reductions in the flow of credit have severely impaired supply of finance to small businesses; and several important economic development projects have been put on hold or cancelled due to a lack of finance. Small businesses considerably add to business, financial, technical and local growth in all financial systems, whether they are developed or developing (David, 2009, 137-144).

Research which examines new ventures, “born-global” firms, small businesses, and multinationals enterprises (MNEs) has provided an array of findings regarding the drivers of internationalization and the factors that contribute to the success and performance of firms in international markets. Management literature has examined top management team (TMT) characteristics; and entrepreneurship literature has examined the innovativeness, risk-taking, and competitive aggressiveness of individuals and organizations as the first to act upon opportunities given different conditions of business risk. Concurrently, innovation research, encompassing new product development (NPD) and to a lesser degree, new service development (NSD), has shed light on the adaptation of a company's products/services to increase market share and establish business advantages (Brady, 2007, 63-97).

With regard to the effects of firm internationalization on performance, empirical results are mixed. Researchers have a limited understanding of the performance benefits of intangible resources, such as human resources in professional services firms. Proponents of the resource-based view (RBV) posit that best intangible resources provide sustainable competitive advantages and superior performances. However, the process by which advantages are created in global professional services involves an understanding of firm resources and differences in service needs across borders. Many questions remained unanswered. This dissertation addresses this need by proposing an integrative framework that incorporates advancements gained from multiple research streams (Brennan, 2008, 78-82).

The Political Environment

This is marked mainly by the degree of state intervention in the retail sector, established programs and policy choices involved. Thus, the retail sector is seen by the intervention of the state to regulate and promote it. Subsequently the state began to withdraw from the area leaving the choice to tourism businesses to set their strategies they consider essential for their survival and expansion, and even performance (Daft, 2009).

The Legal Environment

The legal environment may be explained by all laws, regulations and product standards in the retail sector. Indeed, the market for furniture is guided by clear procedures that define the regulatory and tax advantages so that companies can benefit in their ...