A decade ago, the global market place was dominated by larger corporations where bigger meant more and physical presence was needed to complete sales transactions across borders. Small to medium businesses found more success in local and domestic markets.
However, global communication has changed all that. Video communication and other tools have made it easier for both large and small companies to conduct business globally. Whereas before, physical presence was the barrier to small businesses, the Internet has made it possible for small firms to have a global presence. Small to midsized manufacturers that operate plants in high and low-cost locations are able to spread the cost of manufacturing and create products efficiently. This helps reduce costs and sell to potential customers in places such as Asia.
Micro-multinationals enjoy all the benefits of being a SME – agile and flexible, but also the advantages that are unavailable to SMEs who only conduct business domestically. They are able to exploit global variations in knowledge, skills and labour costs. Furthermore, they are able to work more productively, taking advantage of multiple time zones.
The UK is leading nations worldwide in multinational activity, with the engineering sector particularly keen on operating across borders. 31% of UK micro-multinationals is growing at 11% or more, compared to the 21% of domestic small and medium businesses that grow at that rate. Of these micro multinationals, 78% feel international trade is just as accessible to small businesses as larger ones.
"The Rise of the Micro Multinational | Business Advice." Business Advice The Rise of the Micro Multinational Comments. N.p., 06 Apr. 2016. Web. 08 Apr. 2016.
"UK." Business Advice to Help You Run Your Business. N.p., 04 Apr. 2016. Web. 08 Apr. 2016.