INTRODUCTION SMALL BUSINESSES: u Europe, N. American, & Japan, over 98% of businesses are small u Employ more than 50% u Produce nearly 50% of the countries' GNPs u Create more than 2/3 of new jobs

THE SMALL BUSINESS STAGE MODEL u Stage 1--passive exporting u Stage 2--export management u Stage 3--export department u Stage 4--sales branches u Stage 5--production abroad u Stage 6--the transnational

THE SOLUTION A Global Culture u Values that view strategic opportunities as global u A common language to describe international operations u Owners have a global mind-set u Thinking globally

EX 1 ATTITUDES CONCERNING INTERNATIONALIZATION

EX 2 TRAINING & KNOWLEDGE NEEDS OF SMALL FIRM CEOs

THE SMALL BUSINESS ADVANTAGE u Faster innovation – Can change products and internal operations faster u Speed can overcome size disadvantages

SHOULD A SMALL BUSINESS GO INTERNATIONAL: the questions u Does the company have: – A global product or service? – The managerial, financial, and organizational resources? – The willingness to face the risks of internationalization?

u Is there a country in which we feel comfortable doing business? u Is there a profitable market for our product or service? u Which country should we enter?

u Do we have a unique product or service that is not easily copied by larger companies or local entrepreneurs? u Do location advantages exist upstream in the value chain? u Can we afford not to go global?

FINDING CUSTOMERS AND PARTNERS u Trade shows u Catalogue expositions u International advertising agencies and consulting firms u Govt.-sponsored trade missions u Direct contact