- Nigeria like other African nations is majorly made up small and micro enterprises (Small Businesses) striving to survive the business world which comprises of larger firms that are technologically advanced and are mostly capital intensive. There is lower patronage and investment on the side of the small businesses due to low technological advancement and inconsistency in area of technical efficiency.
Our society of today is experiencing transition from Analogue, digital and hybrid technological advancement which has affected the socio-political and economic dealings all over the world. We however cannot lay much emphasis on the effect of globalization on small business enterprises. It would be worthwhile to know the meaning of Business, enterprise and globalization for the better clarification, they are as follows;
Business according to oxford learner’s dictionary is define as “the making, buying, selling and supplying of goods and services for money”
Business has to do with the commercial activities which involve the trading or buying and selling of any form of goods and service. While an enterprise is the willingness to kick start or run a new venture or organization with the motif of making profit.
Globalization is the spread of products, technology, information, and jobs across national borders and cultures. In economic terms, it describes an interdependence of nations around the globe fostered through free trade. This is also the situation whereby there is interconnection between nations globally.
Globalization took effect right from the computer age from the 19th century when companies began trading activities beyond the boarder of their countries and investing in other nations as well as establish outlets within other nations.
Karl Marx famously in his communist manifesto warned that small local businesses will inevitably be wiped out by large multinational companies in a form of imperialist capitalism. According to him, the destruction of local businesses leads to the loss of local culture, and the rise of a singular anonymous corporate culture which only varies slightly from country to country. Visiting China today, it’s hard to argue with Marx’s words. The urban landscape is littered with KFCs, Pizza Huts, McDonald’s and Starbucks. A trip to a Chinese department store is virtually identical to one in America, with the same multinational brands – Armani, Coach, Chanel, Gucci – lining the halls like an anonymous duty-free airport shop.
However, at a closer glance, today’s multinational companies are a far cry from the sinister imperialists that Marx prophesised. Brands are highly localized to accommodate local tastes, and companies have forged mutually beneficial relationships with foreign countries to further their sales. Foreign governments are also quick to kick out offenders who don’t play by the rules.
Nigeria like other African nations is majorly made up small and micro enterprises (Small Businesses) striving to survive the business world which comprises of larger firms that are technologically advanced and are mostly capital intensive. There is lower patronage and investment on the side of the small businesses due to low technological advancement and inconsistency in area of technical efficiency.
Small businesses often drop like flies when targeted by a multinational corporation with strong globalized ties. However, forging a strong identity and solid alliances with small competitors can increase their chances of survival, so that your small business lives to see the day that it matures into a globalized company.
