Globalization is something that all of us hear a lot these days. However, the world is in many ways becoming a lot smaller due to the Internet, apps and technology like 4th and 5th Generation AI, machine learning and NLP.
Plus, actions that you take in your local part of the world no longer just stop there – those actions are related to other things happening on the other side of the world.
All companies once confined to one geographic area now have a larger role in the global economy, thanks to trade agreements and globalization. However, larger markets don’t just mean more customers. T
Here are many challenges to ‘going global’, especially for startups and small businesses trading.
Here on BusinessBlogs, we have many articles on the challenges of supply chain and logistics, offshore staff, and how to embrace new tech. In this article, we focus on how exactly globalization impacts small businesses around the world.
1. Access to The Global Market
One of the biggest impacts that globalization has had on small businesses is the fact that every business with an Internet connection now has access to the global market.
It used to be that if you didn’t have this connection, then there was no way you could access buyers and suppliers halfway across the world. Now, every consumer can reach into their pocket, pull out their smartphone, and access the products or services you are trying to sell. This can massively increase the revenue of any small business beyond what they could produce before globalisation took effect.
2. Remote Staffing
Another impact that globalization has had is the availability of remote staff aka remote workers.
It was not that long ago that startups and small businesses needed a workplace for staff. Now, enterprises hire staff and freelancers anywhere in the world. Technology like collaboration tools has enabled this set to work almost seamlessly in an office or their own location.
Security is a priority for businesses that have remote workers. Accessing business systems remotes is a vulnerability that cybercriminals are aware of and look to breach, but there are security measures companies can take to prevent cyberattacks.
Another option with globalization is to outsource more business tasks like marketing and the back office. It is not uncommon for companies to use digital marketing services or website developers located offshore rather than hire locally. The cost savings empower startups and small businesses to compete with the big enterprises.
3. Competition from Around the World
Next up on the list, we have competition. As globalization increases, more and more businesses enter the market. Thanks to that accessibility we mentioned earlier, this means that there’s a ton more competition for small businesses around the world.
There will likely be ten other businesses selling similar products for the product you are trying to sell. That means that companies now need to improve the quality of their products and lower prices enough to stay competitive. Or else they risk getting kicked out of the market thanks to this high global competition. So make sure to check out the foreign exchange headlines and other financial news outlets to keep ahead of this competition.
4. A Business Equalizer
Thanks to globalization, everything has become a bit more equal.
That’s part of the reason why Uber and other tech giants rose in popularity so fast. The business world is a lot more equal now, letting small businesses gain popularity where they wouldn’t have been able to before.
Understanding how globalization is affecting startups and small businesses around the world is an opportunity.
While there are threats, you can work out what they are and plan to mitigate the risks.
Thanks for reading this article. You might also enjoy our latest update on business economic performance.