In general, globalization is helping economies both macro and micro grow exponentially, thanks to the way it interconnects everyone and keeps everyone on fairly even ground for competition. Sure, your local government’s economic policies will have sway over how your business competes on a global scale, but in general, globalization has helped even small businesses reach markets heretofore unknown to them.
But how exactly does globalization help small businesses?
Globalization Opens Small Businesses Up to an International Market
Perhaps the key impact that globalization has had on small businesses is that every mom-and-pop shop around the world can now be part of the international trade industry. Back in the day, without the right connections, you wouldn’t even dream of doing businesses with someone across the state, let alone across the Atlantic.
But with the advent of the internet, the development of e-commerce, and advances in mobile phone technology, pretty much anyone from anywhere can access pretty much anything anytime they want. This means that a customer from Ljubljana in Slovenia can order a snow globe from a small store in Odanah, Wisconsin and have the whole transaction completed in less than a week, all with just minimal extra cost for shipping and handling.
Small Businesses Can Be Set Up and Staffed By People from All Around the World
Back in the day, if you wanted to set up a shop in your town’s main street, you had to ask someone from the local businesses to make your poster, then another person for office supplies, and then hire your workforce from the local community. And while all this does work, globalization has helped small businesses set up their shop using an international staff of remote workers that all bring something unique to the table.
Pretty much every aspect of your business, other than manning the brick-and-mortar store, can be done remotely: social media management can be done by an agency in the Philippines, while your digital marketing can be handled by a team in London, and your accounting can be accomplished by an independent company in Morocco.
Globalization Helps Small Businesses Make Their Mark
But perhaps the biggest help globalization gives to small businesses is that it helps them create their mark on the international market with minimal capital. This allows small businesses the opportunity to compete with larger competitors but at an even footing. Globalization has helped shift customer preferences, creating a ‘customer-centric’ business atmosphere.
This atmosphere means that customers from around the world are now more focused on the products in and of itself and how it affects them on a human level. Gone are the days when branded products ruled supreme over all items; in the 21st century, quality and relevance outweigh established brand names. This means that the fictional snow globe shop in Odanah we mentioned earlier can not only compete with professional factories in, say, Switzerland, but the tiny operation can even outsell larger corporations, if they price their products right and if its good enough for mass consumption.
Overall, globalization is a complex issue, one that carries with it various pros and cons, but the benefits they give do outweigh the detriments, and as we enter the second decade of the 21st century, it’s a necessity for businesses to survive.