CHAPTER 1
INTRODUCTION
1.1 OVERVIEW
Internationalization and international entrepreneurship among small and medium-sized enterprises (SMEs) is a topic of considerable relevance, principally owing to the observed growth effects of cross-border venturing, and the demonstrated capacity of SMEs to drive economic development at national, regional, and global levels. (European Commission, 2007).
It is becoming increasingly apparent to governments and policy makers that the role of small and medium enterprises “SMEs” is crucial to the development and growth of any economy. SMEs are now widely known as the force that can motivate the global economy. A number of countries that have adopted this philosophy have managed, through long- term planning and the implementation of SME-serious policies, to upgrade this vital sector. "China and India, for example, are two countries which, according to the World Bank's estimate, will be leading the world's economy for the next 30 years. Both have a very strong SME sector, which has extremely contributed to the growth of their economies. “Said Jan Sturrason, a Swedish expert at Price-Waterhouse Cooper”.
The thesis reports on research into the internationalization process of manufacturing SMEs in Egypt. As one of the African developing countries depends on Small and medium enterprises sector. However, very few is understood about the highly importance of SME internationalization or how, why and when SMEs internationalize. Also examines the barrier and factors that hindering the Egyptian SMEs from going global including the problems which either internal or external directly affecting the internationalization processes. As in Egypt, the performance of SMEs is of great significance to Egyptian economic g...
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... Analysis Methods
It will be determined according to the questionnaire design and results.
1.7 THESIS STRUCTURE
The research will divided into five chapters:
Chapter One:
This chapter constituted of an introduction, an overview a problem definition, research objectives and variables.
Chapter Two:
A literature review mentioning and citing all the main previous academic and practical studies done on the research topic that were read, reviewed and used to formulate the theoretical framework and hypotheses.
Chapter Three:
Thoroughly displays and describes the details of the theoretical framework, the variables and the hypotheses used to test the data collected.
Chapter four:
Gives detailed deep dive into the analysis of the data, testing of the hypotheses and discussions.
Chapter five: This chapter contains the summary, conclusion and recommendations.
In response to the question set, I will go into detail of the study, consisting of the background, main hypotheses, as well the aims, procedure and results gathered from the study; explaining the four research methods chosen to investigate, furthering into the three methods actually tested.
The Methodology used to gather information for this paper was found through various sources. The sources used are all verifiable and established informational resources including (but not limited to) the following; course textbooks, books, journals, and online databases.
In the following of this essay, I will: summarise 1. the question of the research; 2. the theoretical perspective of the research; 3. the conclusion of the research; and 4. describe and critically evaluate the methodology of the research.
This article hasn’t provided an introduction; however a lengthy summary of the study which identifies the problem, purpose and rationale for the research study has been provided in the background. The introduction should give the reader a general sense of what the document is about, and preferably persuade the reader to continue reading. This prepares the reader for reading the rest of the document (Burns & Grove, 2001 p.636; Nieswiadomy, 2008 p.380; Stockhausen and Conrick, 2002).
All research fully carried out on Entry nodes on the long run remain limited to large manufacturing firms. The foreign market selection and the choice of its entry modes drastically ascertain the performance of a specific firm. Entry mode can be defined as an arrangement for an organization that is organizing and conducting business in foreign countries like contractual transfers, joint ventures, and wholly owned operations (Anderson, 1997). Internationalization is part of a strategy which is going on for businesses and organizations transfers their operations across the national borders (Melin, 1992). The firm that is planning to have the operations across the border will have to choose the country that they are planning to visit. Anderson (1997) argues that the strategic market entry decisions forms a very important part of an organizational strategy. The decision to go international is part of the internationalization strategy of the firm. Multinational Corporations that desire to have international operations will find the strategy to go international, the mode of entry is very important. Even though there are studies which have shown that the main effect of being pioneers in a market promises superior performance in terms of market share and profitability than the late movers, Luo (1997) and other researchers have found out that the effect of the first mover may be conditional and will depend on the mode of strategy that is used (Isobe, & Montgomery, 2000). There are different strategies that MNCs can use to enter new foreign markets; they include exporting, licensing/franchising, full ownership and joint ventures. The mode of exporting entails a company selling its physical products which are usually manufactured outside the...
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
Incorporation of SMEs and International companies to better define, penetrate and gain access to both local and international
The research paper is a presentation of facts which are based upon reading or consulting several different sources, presented according to a standard method of procedure, limited to a relatively narrow phase of a subject and original in selection, evaluation, expression, and conclusion.
Why would a company go international? There are many reasons why companies would go international, but generally a company goes international so they can seek opportunities in domestic markets, or they seek solutions to problems that cannot be solved through domestic operations. There are many profitable possibilities by going internationally and these include greater profit potential, offers new locations to sell products, it may provide better access to needed raw materials, it may access to financial resources from many nations, and lastly it may allow labour-intensive activities to locate in countries with lower labour costs. For a small business to become an international business they must use five guidelines the first is global sourcing, exporting and importing, licensing and franchising, joint ventures, and wholly owned subsidiaries. The first two are market entry strategies and the remaining are direct investment strategies.
Now within the rest of this paper you will be finding a few different things getting discussed. Staring it off we will be discussing the articles that we have found to make our arguments and hypotheses. After wrapping up the literature reviews we will be discussing the hypotheses thus continuing onto our variables and indicators. Once we discuss our hypotheses we will be moving onto the research design. The research design will have our general issues, sampling, and methods.
The following introductory sections describe the problem to be investigated and the goal to be achieved. The introduction also provides an analysis of the relevance and significance of the research and a discussion of barriers and issues related to achieving the goal. In addition, the approach and resources to be used in accomplishing the goal are discussed. Finally, a brief summary is provided.
It has detailed how SMEs offer high percentages of employment opportunities, especially when compared to larger firms in the economy. With all the statistics that have been explored, the SMEs have been noted to offer about two thirds of all employment opportunities available in the economy. The SMEs as outlined are also critical in giving skills to the labor pool. They train and offer other skills that are important to prepare people to work in small, medium, and large enterprises. The 2008 financial crisis dealt a blow to the SMEs especially regarding their growth and expansion, but in todays economy, they have sprung back and are expected to continue playing their vital role of offering employment opportunities. When doing the research for this paper I was very surprised about how much SMEs effect the economy. I always assumed it was just large firms and corporations that contributed to the economic growth, or downfall. I work for a small business and this information has made me appreciate the contributions we make to the economy a great deal more. It is definitely a very complex topic, but worth the outcome considering how much information I
Nowadays, entrepreneurship becomes most popular career, where our government encourages our graduated student to involve in business so that unemployment will not happen in our country. Policymakers, academics, and researcher agree that entrepreneurship is a vital route to economic advancement for both developed and developing economics (Zelealem et al., 2004). Entrepreneurship has many types for example small business and others. Today small business, particularly the new ones, is the main vehicle for entrepreneurship, contributing not just to employment, social and political stability, but also to innovation and competitive power (Thurik & Wennekers, 2004).
Until recently, marketing and entrepreneurship existed as two independent, scholarly distinct disciplines. Marketing has focused on understanding the practices and processes within large corporations. However, with a growing interest in the SME sector, the marketing aspects of SMEs and entrepreneurship have also increased in importance.
Within every major economy, a great factor in providing the energy of the core of the nations economy is the small and medium enterprises. These cluster of firms are what provide new economic activity, new innovative products and services, along with growing employment and in general a crucial system in ensuring the economy is at a stable growth level. With a majority of this activity stemming from family controlled or managed businesses, the focus on developing a global and long term perspective for these firms are ever growing in importance because of the global perspective entrepreneurship has started to take.