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Exhibit 6.2: Training and Knowledge Needs of Small Firm CEOs Entering Internationalization

Exhibit 6.2: Training and Knowledge Needs of Small Firm CEOs Entering Internationalization

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Size and Small Business

Internationalization

•• Size

Size barrier

barrier toto internationalization

internationalization

•• Larger

Larger firms

firms have

have more

more resources

resources toto support

support

international

international operations

operations

•• Size

Size isis an

an issue

issue only

only inin the

the internationalization

internationalization

decision,

decision, however.

however.

•• Eventually,

Eventually, international

international sales

sales intensity

intensity ofof small

small firms

firms

exceed

exceed that

that ofof big

big firms.

firms.

•• International

International sales

sales intensity:

intensity: amount

amount ofof international

international

sales

sales divided

divided by

by total

total sales

sales ofof the

the company

company

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Small Business Advantage

•• Speed

Speed becomes

becomes the

the small

small business

business advantage

advantage

•• Faster

Faster innovation

innovation

•• Can

Can change

change products

products and

and internal

internal operations

operations faster

faster

•• Speed

Speed can

can overcome

overcome size

size disadvantages

disadvantages

•• Larger

Larger firms

firms must

must often

often overcome

overcome bureaucratic

bureaucratic

procedures

procedures



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Falling Barriers for Small

Businesses

••

••

••

••



Barriers

Barriers are

are becoming

becoming easier

easier toto overcome

overcome

Government

Government support

support programs

programs for

for small

small businesses

businesses

are

are increasing

increasing

Trade

Trade agreements

agreements are

are making

making trade

trade easier

easier

Increase

Increase inin small

small businesses

businesses engaged

engaged inin international

international

operations

operations also

also makes

makes itit easier

easier



Copyright© 2005 South-Western/Thomson Learning All rights reserved



When Should a Small

Business Go International?

•• IfIf the

the following

following questions

questions are

are answered

answered positively,

positively,

small

small business

business isis ready.

ready.

•• Do

Do we

we have

have aa global

global product

product or

or service?

service?

•• Do

Do we

we have

have the

the managerial,

managerial, organizational,

organizational, and

and

financial

financial resources

resources toto internationalize?

internationalize?

•• IsIs there

there willingness

willingness toto commit

commit resources

resources toto face

face the

the

risks

risks ofof internationalization?

internationalization?

•• IsIs there

there aa country

country inin which

which the

the company

company feels

feels

comfortable

comfortable doing

doing business?

business?

Copyright© 2005 South-Western/Thomson Learning All rights reserved



When Should a Small

Business Go International?

(cont.)

•• IsIs there

there aa profitable

profitable market

market for

for product

product or

or service?

service?

•• Which

Which country

country should

should be

be entered?

entered?

•• Do

Do we

we have

have aa unique

unique product/service

product/service that

that isis not

not

easily

easily copied

copied by

by multinationals

multinationals or

or local

local

entrepreneurs?

entrepreneurs?

•• Do

Do location

location advantages

advantages exist

exist upstream

upstream inin the

the value

value

chain?

chain?

•• Can

Can we

we afford

afford not

not toto be

be aa multinational?

multinational?

Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 6.3: Questions to Consider

in the Small Business Decision to

Go International



Copyright© 2005 South-Western/Thomson Learning All rights reserved



Exhibit 6.4 Steps in Picking a

Foreign Market



Copyright© 2005 South-Western/Thomson Learning All rights reserved



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Exhibit 6.2: Training and Knowledge Needs of Small Firm CEOs Entering Internationalization

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