Canadian small- and medium-sized enterprises (SMEs) are today among the most dynamic and optimistic entrepreneurs globally, according to common global small businesses study with reference to confidence, most SMEs in Canada expect future expansion of their trade thus increase in economic growth.
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The global competitions today seem to revolve about the Latin Americans, Turkey South East Asia, Middle East and, Canada. The resent financial turmoil in Europe might be the root cause of pessimism for trade in France, UK and U.S SMEs. According to surveys, the Canadian SMEs are probably the most likely entrepreneurs to amplification of capital expenditure and staff performance in their export strategies.
Their aim is expanding internationally. Contemporary surveys equally indicate that the expansion has grown from 13% in 2009 to current 39%. The aim of these Canadian SMEs is to increase sales and revenue particularly in the foreign markets particularly the U.S., Europe, U.K., Latin America while others plan to venture to the competitors markets mainly Asia, China, Japan, Taiwan and other South Asian markets.
The major barriers to the entry of Canadian SMEs businesses into the international domain are fluctuation of the foreign currency, high interest rates and lack of knowledge regarding the barriers of entry to a country. In line with the World Economic Forums, on the issue concerning Network Readiness Index (NRI), comparing the degree of preparation between Canada and other countries, Canada in lower than the U.S., Singapore, Denmark and Sweden due to the factors stated above.
The statistics are however changing at an alarming rate because investigation shows that the Canadian SMEs are ready to embrace technology as the most powerful coercer of globalization. According to (Power, 72), there is urgent need for the SMEs to exploit Information and Communication technological advancements for the well-being of the economy.
The war on terror has also been a negative impact over technology because of the constraints placed at the boarder points thus affecting the dealings in the foreign exchange. The United States government has for instance emphasized the protection requirements thus an obstruction to the already well-established productivity from the exports such as the exports from Canada.
The SMEs no-longer depend on the size and reputation of the country and this seem to be a strong driving force to their progressive output. They do not depend on the homogeneity of the markets, predictable human behaviours and mass marketing as important success factors. Market fragmentation and complexity calls for SMEs to advance their strategies, such as easing their procedure and embrace current marketing styles like the internet technology.
They work in accordance with the former General Electric CEO utterances garnering for people to view the world dynamically as it is, other than as per the thought of how it or should be. As the backbone of the economy in Canada, the SMEs can survive the hindrances of advancement and highly improve its competitiveness through ICT change.
The current statistics indicates that over 70% of the U.S. products and services origination from the Canadians’ SMEs is a good indication of ability to do better. They have the chance to fight competitors and do better as international entrepreneurs. There is need to focus upon “the long-term goals other than the short-term bottom-line considerations.” (Power, 187) Most of the international trading variables are manageable.
For better advancement, the SMEs need to focus upon other market niche other than the U.S. The proactive geographical advancement means that there will be in a position competing within the global markets as opposed to the local markets dependency, especially when the only market niche seems to fail. Failure to exploit the already visible markets means that the competitors especially China and India SMEs will overwhelm them and sweep clean the consumer networks.
The current new and emerging technologies are enhancing the trade processing speeds and providing smarter or easier options that enables a business to overtake the competitions with ease.
The e-business has trading tools that the Canada SMEs need to utilize in exploiting the globally enabled network connections, enhancing accessibility to markets easily, finding matching sellers and buyers across the globe, and analyzing the market trends before venturing into a chosen niche. Finally, they assist them in finding ways of saving on the transaction expenses.
Competition means that the SMEs are in a potion to play similar role as the large multinational enterprises. For them to perform competitively, they need to identify with the global village to participate in trade competitively and actively.
For better survival and chances for advancement, the SMEs need to constantly scan the details regarding the ecosystem and relate to any exploitable opportunities that emerge at the earliest time possible to be in a position of mitigating the emerging threats. The government has a vital role in the trading industries.
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The business ought to lobby for creation of a fair and nationally competitive advantage. The government is able to level the playing grounds for these small enterprises by enhancement of the supportive factors such as infrastructure especially the technological infrastructure, education and, availing research methodologies.
They ought to ensure governance of the consumers needs through enhancement of stringent measures or standards. The consumer demands are the factors facilitating the modes, styles and content of supplies. There is equally the need to eliminate the international trade barriers, monopolies and, industries deregulations. The inter-provisional trade barriers cause a strain to the SMEs due to the national competitiveness.
The government ought to adopt strong anti-trust policies collisions or mergers that control the exports and provide the chances for innovations. They have to support and encourage sustained investment in the aim of gaining long-term achievements of capital and dynamic investments for corporate equity. The use of telecom and technological advancement enables the individual and small businesses to advance to expectations.
Access to finances remains to be one of the main challenges facing the SMEs today. The prosperity of these businesses especially the global and innovative ones require support in terms of export for sales, prevention of depletion of capital, enhancement of liquidity and, maintenance of investment particularly by the government.
According to the Organization for Economic Co-Operation and Development (OECD) (2009), the global crisis influencing SMEs is significant to economies of the countries involved thus, the urgent need for proper financial support. The support accorded by the OECD is a positive response indicating the possibility of future advancement of the SMEs. The already evident responses include review of business concerning financing by global and national organizations.
OECD also provides an overview and evaluation of data resources and the policies regarding the collection, evaluation and programming for financial innovativeness for better growth. Today OECD (2009) facilitates the required dialogue between the government and financial institutions and SMEs as a periodical procedure with the aim of strengthening their functionality and financial potency. This is a direct indication that the SMEs are doing better financially and advancing further than before.
OECD Centre for Entrepreneurship. SMEs and Local Development, Paris, France. 2009. Retrieved from www.oecd.org
Power, Terrance. P. International Business a Canadian Perspective. Nelson Education Limited, 2007