The Role of Strategic Management In SMEs International Business Up-Grading

Strategic management is a relatively new scientific discipline, whose goal is to enable the company to work in the modern business environment and the everyday changes that businesses face, both from outside and from the inside. The main goal of strategic management is to equip the company to new operating conditions dictated by market and technical and technological changes, seize opportunities in terms of profit and avoid the threats from uncontrolled factors. So taking this into account, the challenges for SMEs development are multi-dimensional. As trade barriers, transport and communication costs fall, SMEs are required to add more value to their products to stay ahead and compete with lower cost rivals. Consumer demand is changing rapidly as incomes rise and choices increase when imported products become easily available in domestic markets. Competition within the developing world for export markets, foreign investment and resources is also intensifying. This was motivation to focus in this paper on SMEs, its export competitiveness, business strategies, access for financing and the impact of strategic management. Enhancing SME competitiveness requires creation of enabling legal, regulatory and administrative environments and capable institutional structures, and most importantly human capital and a sustainable environment. Public and private sectors in transition and developing countries must work together to improve the functioning of markets at home, while intensifying efforts to integrate into the world economy