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4 introduction 12 problem discussion hollenstein 2005

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Unformatted text preview: De Burca, Brown and Fletcher (2004), there are various approaches when selecting entry modes for foreign markets and these have different implications for small and medium-sized as oppose to large sized firms. Most small and medium-sized enterprises that enter foreign markets do it in a country-by-country basis. In this way the small actors can expand to new markets in a suitable pace with good control over the development (ibid). 4 INTRODUCTION 1.2 PROBLEM DISCUSSION Hollenstein (2005) explains that the internationalization process for small and medium sized enterprises (SMEs) involves limitations of resources in form of finance, information and management capacity to a much higher extent that for multinational cooperation’s (MNC’s). According to the recommendation of the European Union (http://europa.eu/scadplus/leg/en/lvb/n26026.htm) the definition of SMEs is based on the number of employees and their turnover or annual balance sheet. If there are less than 50 employees and the turnover/ balance sheet does not exceed 10 million the company is regarded as a small enterprise. The definition of a medium sized enterprise on the other hand is up to 250 employees with an annual turnover not exceeding 50 million or a balance sheet not exceed...
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