Rise of Micro and Mini Multinationals.Aug 07, 2014
Global economic recession has had far reaching implications on trading especially due to the fact that multinationals have been the most affected. Recent years have witnessed an interesting turn of events where small business start-ups have taken up an active role in redefining the corporate climate. Recession has seen large multinationals cutting down their workforce in order to realise lower operational costs. On the other hand, smaller companies have been at the centre of innovation, business growth and creation of job opportunities.
The rapidly changing corporate landscape has seen small businesses being regarded as the main drivers of the economy often giving established multinationals a run for their money. Technology has played a key role in the transformation of these businesses into micro multinationals. The biggest advantage technology has availed for small businesses are for significantly lower costs, enabling them to gain the reach of traction big multinationals have enjoyed for a long time. Technology has empowered small enterprises to drive growth and rapidly open up new employment opportunities.
For instance, small local technology industry players have mastered the art of focusing on a constricted technological spectrum by aligning their business workflow procedures to favour gradual transformation into mini-multinationals. The aim here is to strictly compete in a core area of expertise, fully grasp industry demands and know how to effectively respond.
Slowly venturing into new geographical locations, and exploiting adjacencies have helped small enterprises to cautiously and gradually venture into new markets. This is while still making sure that core operations are rolled out into new territories using an adept approach and without going too far. The essence is to launch operations only in a few selected countries and strictly keep an eye on business growth patterns and examine how new markets respond to the expansion.
In the recent past, we have witnessed small organisations appointing top international executives to be in charge of operations thus skewing managerial hierarchies to concentrate on effectively catering for the needs of local markets as opposed to big firms that rely on their head offices to oversee policy implementation in several branch locations abroad.
However, the transformation into micro multinational companies has not always been easy for small industry players. Despite the incredible economic contribution of small businesses, bureaucracy of procedures, complex local regulations and legislation and policies bias that favour market big wigs has slowed down the creation of mini-multinationals. Furthermore, these organisations face varied bottlenecks and are subjected to stringent approval mechanisms to venture into new markets.
Thankfully, our vast knowledge and experience in local regulations and legislation is beneficial for smaller sized firms which have envisioned themselves as multinationals in the near future. Our core mandate is based on a simple and digitally focused approach and is aimed at assisting and empowering firms by making sure all their foreign (and domestic) legal entities are in good standing and all cosec activities are covered enabling them to focus on their core business to gradually gain both local and global market penetration. For more information on how we can help you please contact us: firstname.lastname@example.org