Challenges and barriers of SMEs from developing countries (training and consulting sector)
Mahdi, Ahmed (2022)
Mahdi, Ahmed
2022
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2022062018948
https://urn.fi/URN:NBN:fi:amk-2022062018948
Tiivistelmä
Small and medium enterprises have received significant development and great interest from many international organizations and economic researchers. It is one of the best means that drive economic growth due to its rapid establishment and other characteristics and its influential role in economic development. This Master’s Thesis is a study to analyze SMEs’ challenges and barriers in developing countries before going to international markets. The purpose was to explore how the current management deals with challenges and barriers in terms of internal or external challenges and barriers. The study sought to provide answers to the research questions by perceived challenges to extract value to support decision-makers and the development of the owners of SMEs.
The study’s theoretical framework defines international, and internationalization and its primary functions within SMEs in developing countries, the knowledge about the international theories, and how (management/owners) can make decisions before thinking about global markets. Additionally, described the relationship among data collected, information, and the (knowledge/experience) of the executives, the progression of dealing with international processes considering the relevance for a decision setting, and the company's international performance process, including practical network principles, and required qualities of beneficial global strategies. The primary empirical data collection method was a semi-structured online interview targeting three firms. The essential selection criteria used for this study is constructing the purposeful sample:(be currently active in the market and established in a developing country, employ from one to fifty staff, and belong to training and consulting sectors as core business activity).
The study results showed that the challenges and Barriers differ based on company products. As a result, the challenges and barriers could be different according to the company’s business, activity, and location. Therefore, the effect of challenges and barriers considered at the first stage of the internationalization process need not be a barrier forever. The present study explains that one of the motives for SMEs’ internationalization is the managerial wish. As well as analysis concludes that government encouragement and tax benefits significantly impact internationalization and serve as motives for the companies; the SMEs in developing countries experience a lack of government encouragement. Furthermore, it is recommended to conduct similar investigations within various industries separately and differentiate the results achieved according to the foreign markets provided suitable formulation.
The study’s theoretical framework defines international, and internationalization and its primary functions within SMEs in developing countries, the knowledge about the international theories, and how (management/owners) can make decisions before thinking about global markets. Additionally, described the relationship among data collected, information, and the (knowledge/experience) of the executives, the progression of dealing with international processes considering the relevance for a decision setting, and the company's international performance process, including practical network principles, and required qualities of beneficial global strategies. The primary empirical data collection method was a semi-structured online interview targeting three firms. The essential selection criteria used for this study is constructing the purposeful sample:(be currently active in the market and established in a developing country, employ from one to fifty staff, and belong to training and consulting sectors as core business activity).
The study results showed that the challenges and Barriers differ based on company products. As a result, the challenges and barriers could be different according to the company’s business, activity, and location. Therefore, the effect of challenges and barriers considered at the first stage of the internationalization process need not be a barrier forever. The present study explains that one of the motives for SMEs’ internationalization is the managerial wish. As well as analysis concludes that government encouragement and tax benefits significantly impact internationalization and serve as motives for the companies; the SMEs in developing countries experience a lack of government encouragement. Furthermore, it is recommended to conduct similar investigations within various industries separately and differentiate the results achieved according to the foreign markets provided suitable formulation.