The small and medium sized enterprises denote businesses based on small capital, simple management, and small-scale operations. These businesses have local markets supplying small quantities of commodities. The paper tries to explain how these businesses internalize their stocks, their level of innovation, and explains their nature of management. The paper explores their open innovation opportunities, and their definition of international entrepreneurship. The paper tries to explain their reverse innovation as a method to cope with declining economic growth. The paper explores their marketing strategies and their global human resource management. The paper looks into their ethics and social responsibility when implementing and managing a global strategy.
INTERNALIZATION, INNOVATION, AND MANAGEMENT IN INTERNATIONAL ENTREPRENEURSHIP
Internalization is an important activity for all businesses. Every business traded shares and securities in order to raise capital, rather than using other means like the loans. Internalization is important for the small and medium sized enterprises as it popularizes the enterprise therefore expanding their markets for commodities. Internalization also enables the stakeholders to make decision therefore giving a wide range of ideas for a business to succeed (Fink, 29).
The small and medium sized enterprises have high potential on innovation. They are mainly based in the developing society where solutions are not yet met. In these developing societies, unexpected problems may also emerge and this gives chances to the small and medium sized enterprises. These enterprises may also divert their activities and transform their economic base into the emerging innovations (Lowe, 38).
In management, these enterprises only comprise of simple management of tasks. They have limited capital therefore unable to hire more staff. The small capital limits them to expand due to inability to purchase large quantities of raw materials for processing. These enterprises only compete locally therefore, the management remains simple due to low competition. However, these enterprises have high potential to expand as they can apply policies already researched by the giant enterprises (Fink, 99).
OPEN INNOVATION OPPORTUNITIES AND INTERNATIONAL ENTREPRENEURSHIP
An open innovation creates new opportunities for all types of small and medium sized enterprises. The businesses allow intensive research that enables them to explore the market conditions in order to expand. Innovations allow the businesses to produce commodities using new methods therefore lowering the costs of production. These businesses should allow use of technology which acts as the foundation to innovation (Johnson, 132).
REVERSE INNOVATION AND INTERNATIONAL ENTREPRENEURSHIP
In reverse innovation, the periphery countries have the highest potential to make new products. The small and middle-sized enterprises have the highest potential to discover unmet and unexpected needs in the developing society. They therefore offer solutions to the middle and high-income countries such as social entrepreneurship, creative problem solving, and health service delivery and skills substitution. Goods produced locally are tested, and marketed in these periphery countries. If these products become successful, the responsible firms upgrade the goods and then find new markets into the developed world (Johnson, 158).
MARKETING FOR SME INTERNALIZATION
Marketing for the SME’s is important as it opens new markets for their products. Internalization in these enterprises increases capital and this boosts their operations. Internalization activities boost the performance of Small and medium sized enterprises. These activities reinforce growth, enhance both local and global competitiveness and this leads to the long-term sustainability of these companies (Lowe 86).
ETHICS AND SOCIAL RESPONSIBILITY OF THE SME’s
In their operations, all businesses should consider ethics and social responsibilities. These areas include employee’s heath conditions, creation of jobs, social inclusion, and the consumer as well as workers welfare. These responsibilities count on the success of any business. It is important for firms to find proper methods of disposing their waste materials. Workers exposed to hazardous materials for production should get health allowances to cater for the damages. Workers exposed to high risk areas and unsecured areas should get hardship allowances as an added advantage. The workers should get their salaries and wages on time to plan effectively on their activities (Spense 27).
Consumers should get protection from false adverts that incite them to buy products. They should also get the standard weights and products that they expect. The businesses should incorporate every person in the society. They should eradicate all gender, disability, or age differences when dealing with recruitment of new workers. The business should improve the skills levels and education of their workers as well as of the surrounding community.
Works cited
Fink, m. The management of small and medium enterprises. New York: Routeledge
publishers. 2009 print.
Johnson, L.small and medium enterprises, concepts, methodologies, tools and applications.
New York: IGI Global Publishers. 2013 print
Lowe, R. International marketing strategy; analysis, development and implementation.
London: Jenifer Pegg publishers. 2009 print
Spence, L. Ethics in small and medium sized enterprises. London: springer publishers. 2011
print
