Running head: Entrepreneurs’ Fears Case Study
Entrepreneurs’ Fears Case Study
The White House would like to raise exports by small business, however the unreliability of the global market is frightening the enterprise. President Obama would like to help out small businesses by asking Export-Import Bank to rise export funding by more than a third, to 6 billion dollars. With these increases he hopes to double American exports and encourages small businesses to go abroad. It is extremely hard for small businesses to go abroad though when the larger businesses dominate exports accounting for close to 60 percent of the 1.2 trillion dollars in exports. Small businesses ...view middle of the document...
Payment isn’t the only challenge with international business transactions. Small business also run into the problems with currency, language barriers, legalities and time zone changes. Currency can raise a problem because having an unforeseen currency variation can destroy profits, for instance credit card transactions can cause serious problems depending on the provider and their provider’s currency conversion. Language barriers can be extremely hard when dealing with other companies overseas because it is almost impossible to conduct business without proper communication. Depending on where business it being constructed it may be hard to find a proper translator. It’s obvious that different countries have different laws that must be followed and if a small business is not familiar with these different laws they could find themselves in a lot of trouble. Lastly, time zones doing business globally may cause small businesses to be open later hours than originally needed, this mean they will have to pay employees more money for staying late or hire more employees to work those shifts, either way that is more money. (Duff)
Analysis of the Problem, Solution, Implementation, and Justification
The first way and most important way for a small business to succeed when going global would be to find the right partners. Building a strong relationship with the country you want to work with is huge and you want that person to be someone you and the country of choice trust, also you want them to be able to vouch for you. This will eliminate the downfall of not receiving full payment if you are working with people that you trust, you will be able to rest assure that your money for deliveries will be guaranteed. Another important part of this expansion is hiring a good team of employees. The people that small businesses select to run their overseas operation must be fully submerged in the local environment and also make sure they have experience dealing with international business. This will get rid of that language barrio if you have locals working in your company that you trust you can use them to translate. Also you can have them take of the work that you wouldn’t be able to do in the states due to the time zone difference. Lastly, doing a small businesses due diligence is super important, all ideas must be fully thought out and in the best interest of the company before putting them into effect. (Fallon)
Most recently, “businesses that were most confident tended to be...