Assignment on Small and Medium sized Enterprises
Added on - 18 Sep 2019
STRATEGIES FOR SMALL AND MEDIUM ENTERPRISE INTERNATIONALIZATION AND BARRIERSOF INTERNATIONALIZATION AND EXPORT PERFORMANCE OF LOCAL AGRICULTURALBUSINESSES IN NIGERIA.Chapter 1.1. Introduction.Small and medium-sized enterprises are some of the most effective sources of growth foradvanced industrialized countries and for emerging countries alike. The underlying growthprospects in such kinds of enterprises are huge compared to large organization. SMEs havegained recognition over time with their own characteristics(Dimitratos et al., 2016).Theagencies are considered as one of the large parts of the private sector of the developed anddeveloping countries. However, it was seen that SMEs have a causal link with economicdevelopment as there is evidence that show that small firms usually faces larger growthconstraints than the big firms due to less access to external finance(Eniola & Ektebang, 2014).Internationalization is usually denoted by big business, however, it is slowly being carried out bythe small business as well with their limited resources (Dimitratos et al., 2016). The reasonbehind internationalization is to increase sales, diversify associated risks and operation, gettingbetter clients, reduce costs and other benefits for business. The agricultural sector of Nigeriahas always faced with issues such as the lack of development, marketing problems, unstableprices and others (Eriksson et al., 2015). Internationalization will help them to improve on thesepotential barriers so that they can experience continuous growth. The agricultural sector of
Nigeria is experiencing a lower development and growth rate over decades with an averagegrowth rate standing at 6 to 8 percent per year. Thus, it became necessary to research thestrategies that small and medium-size enterprise like the agricultural production of Nigeria canuse to promote their internationalization process and solve the issues they are facing such asgrowth sales and profitability.1.1 Aim and Objectives of the Research.The aim and objectives of the dissertation will help in offering a clear view to the research onstrategies for small and medium enterprises internationalization and barriers ofinternationalization with reference to export performance of local agricultural businesses in adeveloping country like Nigeria and areas that need to be achieved through thorough researchand analysis.AIM: The research aims at examining the strategies that SMEs can use to internationalize thelocal agricultural production in Nigeria. It establishes an inclination to know the ways in whichthe small and medium sector enterprise can grow internationally and have a global presenceeven after facing various constraints such as financial earnings or financial help from externalsources. The major goal of the study will be to understand industrialization and the strategiesother small sector firms have adopted worldwide to get an international presence. This studywill explore whether similar strategies can be implemented in the SMEs of Nigeria.OBJECTIVES: The objectives of the research is as follows:• To study the meaning of internationalization: Industrialization has various meanings as it isunderstood by different people on a different sphere. Understanding internationalization will
be the first and the foremost aim of the paper as without understanding this term it will bedifficult to set the strategies that can help attain the industrialization.• To examine the internationalization of SMEs: Industrialization of the SMEs will help inoffering a close link between these two terms as industrialization is mostly considered to beadopted by large firms. Thus, getting it clear that industrialization can also be used by SMEs toattain growth is also beneficial and possible in today’s world. Thus, this objective aims atexplaining the ways in which internationalization is also attached with SMEs.• To examine the strategies for SME internationalization: The objective stands out as themajor portion of the objective that will help in examining the comparative strategies that havebeen taken by SMEs for attaining industrialization. It is a crucial part of the paper as attainingthis objective will help in stating the ways SMEs in Nigeria can also get globalized.• To investigate the barriers and challenges that SME local agricultural production in Nigeriacan use to internationalize: The objective that will accomplished through primary research andalso help in suggesting the strategies for SMEs in Nigeria. The objective will allow coming withthe complete outcome of the paper as it will help in knowing the strategies that are alreadyused by some of the SMEs in Nigeria.1.2 Research Question.The research question for this research will be centered on; what are the barriers and possiblestrategies that SME of local agricultural production in Nigeria can use to internationalize?The rational for the Study.