The internationalization process of small and medium sized enterprises

Governments world wide have come to recognize the importance of SMEs and their contribution to economic growth, employment, regional and local development. Globalization lhe acceleration of technological change and innovation create opportunities for SMEs to broaden their activities internationally. The internationalization process is described as a gradual development taking place in distinct stages and its traditional view is based on economies of scale and large firms. Small firms, however, cannot enjoy all the options in the internationalization process outlined in literature. A theoretical description of the internationalization process of SMEs is presented throughout five stages: Domestic Marketing Focus, Pre-export, Experimental Export Involvement, Active Involvement, Committed Involvement. Exporting is most common and widespread form of internationalization used by small and medium sized enterprises. The increasing internationalization of markets presents both opportunities and threats for SMEs in many countries. To face the challenges of an open economy the firms have to gear up and internationalize their business operations. The SMEs have the advantage of adaptability and flexibility, vital for maintaining competitiveness in the international market; but unfortunately limited resources, difficulty in acquiring information, lack of managerial experience with exporting and some other factors restrict the scope of their export business. The success of SMEs in the international market depends on: creating an enabling environment and the chance to acquire new knowledge and new skill, improving access to trade finance.Zadanie pt. „Digitalizacja i udostępnienie w Cyfrowym Repozytorium Uniwersytetu Łódzkiego kolekcji czasopism naukowych wydawanych przez Uniwersytet Łódzki” nr 885/P-DUN/2014 zostało dofinansowane ze środków MNiSW w ramach działalności upowszechniającej naukę