Developing small business operations in foreign markets: foundation‐building strategies for steady growth and profitability

Great numbers of small European and US firms are trying to penetrate foreign markets. Misunderstood requirements and poorly investigated information typically cause missed opportunities and failures. Without the ability to recognize and utilize competitive information in a timely manner, the small firm cannot succeed in the foreign market. Small firms that are preparing for and meeting international opportunities could benefit from the utilization of the foundation‐building strategies proposed in this paper. Small firms can use these strategies for information gathering and analysis in international and domestic business environments. The authors of this paper recommend 11 interrelated sets of processes or “foundation‐building strategies” which provide the necessary framework for readying the small firm for successful entry into the foreign marketplace. These sets of processes or “foundation‐building strategies” comprise the 11 most important planning steps for small business success in foreign markets. Small businesses must know the right questions to ask and must analyze the findings carefully in order to enter and operate successfully in foreign markets.