A Study On Chinese SMEs "Going Global" Strategies And Main Obstacles Encountered

Since Chinese reform and opening-up, SMEs have been growing and developing rapidly, constituting the important part of national economy. With the deepening of economic globalization and regional integration, as well as the closer relations between countries, Chinese enterprises especially SMEs are provided beneficial environment for going outside to carry out cooperation in a wider area and heightened level. The trend for SMEs going global to attend international competition is inevitable. The purpose for this thesis is to explore the factors for internalization, the advantages SMEs themselves possess, the role the government, industries, associations and intermediary institutions should play in SMEs internalization as well as the obstacles in this progression, analyze the different modes SMEs choose to enter the international market, and then put forward that establishing overseas' industry cluster networking, forging own brand and specialized product marketing strategy are all the efficient ways for SMEs internalization.This paper mainly covers six chapters.The first chapter gives an overall introduction to SMEs and the "going global" strategy. Firstly it focuses on the different definitions of SMEs in EU, USA, Canada, Japan and China, expounds the important position of SMEs in the national economic development. Secondly, it briefly introduces supporting policies in laws and capitals etc., and analyzes the factors which cause the SMEs going global.The second chapter elaborates the theoretic elements of SMEs internationalization including theories of International Eclectic Paradigm, scale economy, small scale technology, proprietary advantage, processing and five stages of internationalization.The third chapter illustrates that since China's entry into the WTO and with incremental internationalization experiences, part of SMEs have successfully realized internationalized operations and built up their brands. Take typical SMEs in ASEAN, European and American markets, this paper concludes several entering modes for SMEs into the international markets and analyzes how SMEs choose the suitable mode in different developing stages.The fourth chapter stresses the policy systems of promoting SMEs internalization as well as their implementing effects in other countries and international organizations, which aims to provide some implications for Chinese governments and enterprises.The fifth part emphasizes the obstacles that SMEs meet in going outside from the perspectives of governmental institution, the economic and political environments of local countries, the information networking and cultural conflicts, and the cultural conflicts includes language, custom, religion and local life.The sixth part puts forward some specific suggestions for SMEs going global from three angles of governmental macro-guidance, SMEs self-capacity construction and social intermediary services. The governmental departments should perfect the corresponding laws and regulations for encouraging SMEs development, and at the meantime, SMEs themselves should enhance the core competitions by innovating technology and management system, build up overseas' industry cluster networking to rely on the group enterprises power to compete in the international market, while the intermediary institutions should help to smooth the internalization process of SMEs by providing all kinds of services such as legal, information, consultation, overseas' visits, exhibitions and expo services.The paper sums up that SMEs going global to take part in the international competition is the inevitable choice for further sustainable development. SMEs should take their own characterises and position into full account to find their most suitable internalization way.