How Internationalization Has Affected Small Businesses
A business can be defined as an unincorporated social or corporate entity organized for the purpose of conducting commercial, industrial, or other productive activities. The entity in turn usually starts with an idea (the idea) and some or all of the names of individuals or groups who will carry out the activities. In many ways, the Internet has made this easier. Large databases containing thousands of businesses, investors, and individuals make it possible for a business owner to quickly find a business to engage in.
A business refers to any of the activities performed by an entity in order to produce a profit. Profits are the earnings that accrue from the sale of goods, services, and information produced or made by a business or an individual. The activities of any business refer to those conducted with respect to the production of profit. For instance, the operations of a retail store refer to those that result in the provision of goods and/or services and those that result in the conversion of a customer into a purchaser.
A company refers to any of the businesses or other entities that carry on the activities described above. In most cases, a company refers to the manufacturer or seller of the goods or services whose production produces or results in the provision of goods and/or services to the customers of a given business organization. Different types of businesses exist and are included within the business organizations of which a particular firm is a part. They include wholesale entrepreneurs, retailer businesses, merchandising business organizations, public market businesses, government enterprises, multinational companies, limited liability partnerships (LLPs), and international network businesses. A privately owned and controlled business carries on the activities carried on by the mainstay large companies, but with the difference that the owners participate in the management and control of the firms.
Among the activities performed by small businesses and the ones performed by SMEs are the following: sales, marketing, service, finance, accounting, administration, and research and development. Since many small businesses are usually family run and involve only few employees, accounting, marketing, and service operations are performed by the owner or by a small team of workers. Since small businesses do not use huge amounts of capital, they require smaller amounts of financial resources to ensure smooth operations. This is why they conduct regular market research about the prices of their merchandise and the demand for their product line.
Large businesses engage in large-scale market operations. These companies produce, distribute, and retail their own products and employ thousands of workers to perform these activities in dozens and even hundreds of sites. They use modern day techniques such as advanced computer programs and sophisticated machinery to make their goods available to the consuming public. SMEs engage in manufacturing and production processes that generate smaller amount of waste, produce high volume of goods, and sell at a fast pace to maintain a large profit margin.
As more businesses emerge and become multi-national chains, business operations become more global. Even if a business produces and distributes goods that are used in several countries, it can effectively operate in different countries through its local and regional operations. It is no longer necessary for businesses to concentrate on its local market only. The global market is now the core of any enterprise and every business must cater to the needs of the global consumers. With globalization, there has been an improvement in business operations and productivity especially in the field of consumer goods.