Going global for small businesses was a daunting prospect some time ago. With the passage of time, being identified as a global enterprise is no longer a rocket science for these businesses. The international marketplace is now a playing ground for numerous developing, small-scale businesses.
These developing small companies are well-known as micro-multinationals and share similar characteristics with multinational corporations. Micro-multinationals are small and ambitious businesses that supplement domestic operations by opening offices or hiring staff in one or more transoceanic markets.
The innovation is encouraged by international trade that helps businesses of all sizes to take advantage of global opportunities, further strengthening the economy. Research on the subject has shown that confidence in overseas opportunities is increasing among micro-multinationals as it gives them a greater advantage over single market small-to-medium-sized enterprises (SMEs).
It is in great trend nowadays and experiences a rapid increase due to the advancement in modern satellite and Internet technologies. Better connectivity and regular search for low-cost labor have helped the micro-multinationals to achieve competitive advantage.
In a worldwide context, it has been found that the micro-multinationals are growing faster as compared to the small-to-medium-sized enterprises (SMEs) in the same position. Numerous micro-multinationals all around the world believe having a presence in multiple markets makes it easier to sell goods cross-border.
The opportunities for these micro-multinationals are advantageous, as they are often quicker to introduce than competitors, and are better able to adopt new technology. They typically focus on their value recommendations around a product or competency in which they have a particular specialist expertise to keep their customer happy.
It has been realized that micro-multinationals have changed the aspects of global business across industrial sectors and geographical boundaries to a larger extent. This is an area where a majority of small-to-medium-sized enterprises (SMEs) are venturing into.
The increase in micro-multinationals has resulted in small businesses spanning the globe and benefiting from cross-border trade. The results, however, are achieved by creating a seamless international value chain that can break down barriers to entry and helped small-to-medium-sized enterprises (SMEs) see the bigger picture beneath.
Ari Afilalo is a banker, musician, professor, and researcher based in New York City. He has research on different subjects associated with international trade, international business transactions, and E.U. Law. Additionally, he had practiced as a law clerk and focused on financial transactions, international commercial and intellectual property during his tenure. Currently, his research focuses on the relationship between international trade orders and the nature of the State.