Cultural Impact on Small Business Strategies: A Report

This report delves into the critical role of cultural influences on small business strategies. It emphasizes the importance of understanding the host country's culture, including dimensions like individualism vs. collectivism, uncertainty avoidance, power distance, and masculinity vs. femininity, to effectively attract consumers and comply with regulations. The report highlights the significance of small businesses in the US economy, referencing job creation and contribution to GDP. It underscores the adaptability and innovation of small businesses in leveraging market opportunities. The assignment also discusses the concept of cultural intelligence, which is the capability to work in different cultures. The report provides valuable insights for entrepreneurs and business professionals seeking to navigate the complexities of global markets and build successful businesses.

The culture of the host country plays a key role to shape the business strategies. Considering
culture of the host country at the time of strategy development is effective to attract the local
consumers as well as operating in the market without violating the market regulations
(Livermore & Soon, 2015). The culture of a country can be characterized by five dimensions.
The five dimensions are the individualism vs collectivism, the focus on uncertainty avoidance,
the power distance and the masculinity vs feminity. The businesses require focusing on the
cultural dimensions while operating in the country. The cultural intelligence of the business can
be described as the capability to work in different cultures (Livermore & Soon, 2015).
Reference:
Livermore, D., & Soon, A. N. G. (2015). Leading with cultural intelligence: The real secret to
success. Amacom.
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The small businesses account for a significant portion of the US economy. In 2016, there were
5.6 million small businesses in the US (Sbecouncil.org., 2018). The small businesses are
beneficial in terms of job creation and boosting the economic growth. In the US, the small
businesses have created 1.9 million new jobs in 2015 (Sbecouncil.org., 2018). In addition, the
small businesses account for a significant portion of the US GDP (Sbecouncil.org., 2018).
However, the diverse nature of the US economy, in terms of the innovation and
flexibility helps the small businesses to accept all the opportunities in the market and
boost the growth rate.
Reference:
Sbecouncil.org. (2018). Small Business & Entrepreneurship Council. Retrieved from
http://sbecouncil.org/about-us/facts-and-data/