The concept of business internationalization ever be understood as the process of internationalization segment of large-scale enterprises (CIB), however in recent years, small and medium-sized businesses are strong participation in the process of globalization businesses. The development follows the process of globalization of large enterprises does not make the process of globalization of small and medium enterprises become easier, because the theory of globalization, large enterprises can not applies to small and medium businesses by minimizing the model (Lu and Beamish, 2001). This difference is due to the small and medium enterprises in the world in general and Vietnam in particular has the characteristics, needs or requests globalized financial completely different compared to large enterprises, the points in particular will be presented shortly.
characteristics of small and medium enterprises in Vietnam now
Vietnam SMEs also carries a full range of common characteristics of SMEs as described above. In addition, Vietnam SMEs have some specific characteristics are as follows:
Nature of business: small and medium enterprises are often concentrated in areas of processing and services, which is more close to the consumer. In particular it is: Small and medium enterprises are the satellite, processing the detailed parts for large enterprises as engage in investment products; Small and medium enterprises implementing services and rich diversity in the economy such as services in the distribution and commercialization, services and recreational activities, counseling services and support; Directly involved in the processing of products for final consumers as a whole manufacturer. Thanks to the nature of this business for small and medium businesses have the advantage of flexibility. We can say flexibility is the dominant characteristic of small and medium enterprises, because small-scale structure, and so the ability to change items, to move the business even business locations are considered strengths small and medium enterprises.
in terms of material resources: in general, small and medium enterprises are limited by resources, natural resources, land and technology. The finite resource is derived from principles and business formation. On the other hand also due to the limited in relation to the financial markets - currency, usually the accumulation process itself plays a decisive role of each medium and small enterprises. Financial capacity of the enterprise VN very weak. Number of firms with less than 1 billion accounted for 44.1%. Now the average capital of 24 billion VN into account almost 13 times lower compared to the FDI (World Dr. Dinh Hien, 2016). Awareness of the problem countries in the world in general and Vietnam in particular is an area of former support small and medium enterprises to enable them to participate better in organizational support to overcome the narrow this.
On executive management capacities: from the origin of, the nature and the scale ... the governance part of small and medium enterprises often grasp, overarching and consistent torus most aspects of operation business. Usually they are considered corporate executives rather than intensive management. Therefore, skills and professional management in small and medium enterprises is still very low compared to demand (Wiklund, Delmar and Sjöberg 2004).
The application of digital technology: nationwide sample survey of VCCI found that 95% of businesses use the internet, 80% use email. However, the use of information technology is not yet accounted for 59% efficiency; only 35% use business support services in technology ... Ms. Tammy Phan (Director of Strategic Partner and Channel Sales of Google Asia Pacific, 2016) said that the digitization of small and medium enterprises has been slow by many challenges. On the other hand, has now said that the digitization costly and lack of access to investment capital; lack of internal technical expertise; society has a habit of using cash and not worry about security issues. The old ways of thinking are not a small hurdle in the process of globalization, SMEs in Vietnam today.
Demand globalization small and medium-sized businesses
demand today globalization is not just about own this large customer segment but also are the needs of businesses small and medium scale. However, the lack of documentation process guidance is for businesses that have difficulty in the process of globalizing their businesses. Still this does not make globalization work for small and medium enterprises on the contrary slow down this process is taking place under the direction of new and groundbreaking than the globalization of large enterprises.
one of the most obvious causes reflection of global demand that businesses today is that globalization can solve the problem to ensure the growth of business activity of firms (Westhead, Wright 2011 ). The reality in Vietnam today, when the business reaches saturation point in the development of business, and
đang được dịch, vui lòng đợi..