Chapter 5: Entrepreneurial SMEs Surviving in the era of Globalization: Critical Success Factors

Entrepreneurial small- and medium-sized enterprises (SMEs) face ever increasing competition not only at the domestic level but also at the global level. While large-scale enterprises and multinational corporations often hog the limelight, research and studies reveal that SMEs form the core of the growth engine of most of the national economies and are critical to rebuilding the economy from an economic crisis. In fact, SMEs make a significant contribution to economic growth and continue to play a pivotal role as a catalyst for development to drive innovation, competitiveness, and future growth. However, due to their size and limited resources, most SMEs often struggle to keep on top of new development in capabilities and skills and encounter difficulties keeping their operational activities in balance. Therefore, it is inevitable that most governments have taken a keen interest in SMEs’ development by providing infrastructure and financial grants. As such, it is argued that resource-constraint SMEs need to preserve the focus and drive to survive and grow in today’s interconnected, interdependent world. SMEs need to be properly equipped with deep capabilities in transformational leadership, technicality, and entrepreneurship, and innovativeness required to go international more rapidly and profitably in today’s increasingly borderless world.