Globalisation has become a debatable issue for policy makers as well as the entrepreneurial world. This is certainly because of the impacts globalisation has on SMEs and the advantages it offer to the entrepreneurs and national economies in general. Because of the market internalisation, nearly every business; be it small or large is impacted by the globalisation challenges. Technological innovation in supply chain and logistics enable every business to trade at a global scale.
SMEs contribute to more than 50% of the national GDP and offers over 60% of the total employment in developed countries including the UK. SMEs and startups run by entrepreneurs play a crucial role in boosting economic progress through creating more employment opportunities for the residents as well as for the talented migrants who enter UK in hope of getting a rewarding opportunity.
While globalisation can produce different outcomes, entrepreneurs and the fast-evolving UK’s corporate sector can implement the best practices to reduce the risks while augmenting the benefits.
Scroll down to see how UK entrepreneurship is solving major globalisation problems.
UK Entrepreneurship and Globalisation
While globalization brings in a variety of benefits for the entrepreneurs and a common man including better living standards, increased creativity and innovation, easy access to international markets and lowered costs for products and services, there are numerous challenges that needs to be faced by the business world to stay stable and profitable. For instance, entrepreneurs may have to deal with the factors of job mobility and loss of cultural identity to retrain their global diversity and individualism.
Why Countries Globalise?
Despite all the challenges and threats, almost all developed countries including the UK prefers to opt for globalization and there are many reasons for that.
To Reduce Trade Barriers
Developed countries globalise in order to reduce trade barriers. This allow firms to have easy access to the international markets resulting into a broader selection of products for final consumers. Liberalising Markets Through globalization more and more markets can be introduced without minimal government interference.
Increased Business Investment
Another reason why countries globalise is that it makes it simple to collaborate with the international markets. As a result, there is increased sourcing of funds which enable enterprises compete favorably.
Through globalisation small businesses and budding entrepreneurs get access to international markets, export their products and compete on a global level.
Major Globalisation Problems
While there are numerous benefits associated with the concept of globalisation, it’s also evident that SMEs are threatened by it in numerous ways.
Access to global markets has made it possible for different countries to enter the UK market. This leads to the migration of skilled labour and talented entrepreneurs. Also, many multinationals enter the corporate world and have to introduce goods and services at lower prices just to make their place in the business world. This unnecessary reduction in prices has a negative impact on their overall profitability and outcome.
Increased Cost of R&D
Globalisation has significantly increased the cost of research and development. Entrepreneurs interested in investing in global markets need to go through the market basics and also have to spend hefty on making suitable strategies that can help them have a firm standing in new markets.
Globalisation has also promoted stiff competition from international investors who’re investing in different countries.
UK Entrepreneurship is Solving Major Globalisation Problems
The role of UK Entrepreneurship is quite prevalent in the globalisation scenario. With emergence of more and more startups and the country’s lenient policies towards setting up, running and expanding businesses, increased number of external investors are showing immense interest in investing in the UK’s economy.
As a result, more employment opportunities will be created which will help individuals have better standard of living. When more people are employed, they will be more willing to invest in future projects and would be in a better state to spend on research and development that will help them promote their products and services on international forums.
It’s also a great chance for investors who have already invested either £200,000 or £50,000 in cash into
1 or more UK businesses and now want to expand their business operations. They can do this by acquiring tier 1 entrepreneurship extension which will enable investors to extend their business activities, hire more people, increase exports and positively contribute to reduce the negative impacts of globalisation. The process involves certain requirements that need assistance of a professional immigration lawyer, but this investment will definitely worth in the end as it will open door of opportunities for you to expand your business and contribute directly or indirectly to the progress of the country.
Globalisation is a continuously evolving process that acquires both pros and cons. The basic objective is to ensure that independent financial actors and countries work in collaboration with each other for the profitability and benefit of everyone.
The author of the above content is Kazim Raza. He’s has been working as a Digital Marketing expert and currently associated with the Australia’s renowned shoe covers company.