small enterprise definition

small enterprise definition

7 Tips for Export Management for Small Enterprises

Small enterprises are businesses that have revenues, assets, or a number of employees below a certain threshold. Each country has its own definition of what constitutes a small enterprise, but they generally share some common characteristics, such as limited resources, flexibility, and innovation.

Export management is the process of planning, organizing, and controlling the export activities of a business. Export management can help small enterprises to expand their markets, increase their revenues, and diversify their risks. However, export management also involves some challenges, such as complying with different regulations, dealing with cultural differences, and facing competition from foreign rivals.

How can small enterprises manage their exports effectively and efficiently? Here are some tips to consider:

1. Conduct market research

Before entering a foreign market, small enterprises should conduct market research to identify the potential customers, competitors, opportunities, and threats in that market. Market research can help small enterprises to understand the demand, preferences, and behavior of the target customers, as well as the strengths, weaknesses, and strategies of the competitors. Market research can also help small enterprises to assess the political, economic, social, and legal factors that may affect their export operations.

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2. Choose an entry mode

Depending on the level of commitment, risk, and control they want to have in the foreign market, small enterprises can choose different entry modes for their exports. Some common entry modes are direct exporting, indirect exporting, licensing, franchising, joint venture, and wholly owned subsidiary. Each entry mode has its own advantages and disadvantages, so small enterprises should weigh them carefully and select the one that best suits their goals and resources.

3. Develop an export plan

An export plan is a document that outlines the objectives, strategies, and actions for exporting to a specific market. An export plan can help small enterprises to clarify their vision, mission, and value proposition for the foreign market, as well as to define their target market segment, positioning, pricing, distribution, promotion, and customer service strategies. An export plan can also help small enterprises to allocate their resources, assign responsibilities, set milestones, and measure performance.

4. Build relationships

Relationships are key to successful exporting for small enterprises. Small enterprises should build relationships with various stakeholders in the foreign market, such as customers, distributors, suppliers, agents, intermediaries, government officials, industry associations, and media. Building relationships can help small enterprises to gain trust, credibility, and loyalty from their partners and customers in the foreign market. It can also help them to access valuable information, feedback, referrals, and support in the foreign market.

5. Adapt to the local culture

Culture is the set of values, beliefs , norms , customs , and practices that shape the behavior and communication of people in a society . Culture can influence how people perceive , interpret , and respond to products , services , messages , and interactions . Therefore , small enterprises should adapt to the local culture of the foreign market they are exporting to . They should learn about the cultural differences and similarities between their home country and the foreign country , and adjust their products , services , messages , and interactions accordingly . They should also respect the local etiquette , manners , and protocols , and avoid any cultural faux pas or offenses .

6. Comply with regulations

Regulations are the rules and laws that govern the export activities of a business . Regulations can vary from country to country , and from industry to industry . They can cover aspects such as product standards , quality control , labeling , packaging , documentation , taxation , tariffs , quotas , licenses , permits , certifications , intellectual property rights , environmental protection , labor rights , consumer protection , and anti-corruption . Small enterprises should comply with all the relevant regulations in both their home country and the foreign country they are exporting to . They should also keep abreast of any changes or updates in the regulations that may affect their export operations .

7. Seek assistance

Exporting can be a complex and challenging process for small enterprises . Therefore , small enterprises should seek assistance from various sources that can provide them with information , advice , training , funding , networking , advocacy , or other forms of support for their export activities . Some examples of sources that can assist small enterprises with exporting are government agencies , trade associations , chambers of commerce , export councils , export development corporations , export credit agencies , banks , consultants , mentors , coaches , peers , or online platforms .

By following these tips , small enterprises can manage their exports more effectively and efficiently . Export management can help small enterprises to achieve growth , profitability , and sustainability in the global market . offers wholesale distributors and manufacturers a simple and economical way to grow their business online
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 What is a small enterprise and why is it important?

A small enterprise is a business that has a relatively low number of employees, revenue, or assets. The definition of a small enterprise varies from country to country, depending on the size of the economy, the industry, and the level of development. For example, in the European Union, a small enterprise is one that has fewer than 50 employees and an annual turnover or balance sheet total of less than 10 million euros. In the United States, a small enterprise is one that meets the criteria set by the Small Business Administration (SBA), which vary by industry and ownership structure.

Small enterprises are important for the economic and social development of a country. They contribute to job creation, innovation, competition, and diversity. They also provide opportunities for entrepreneurship, empowerment, and inclusion for various groups of people, such as women, youth, minorities, and rural populations. Small enterprises are often more flexible, adaptable, and responsive to changing market conditions and customer needs than larger firms.

 How is the global demand for small enterprises changing?

The global demand for small enterprises is changing due to various factors, such as technological advancements, globalization, environmental challenges, and social trends. Some of these factors create new opportunities for small enterprises, while others pose threats or challenges.

On the positive side, technological advancements such as digitalization, e-commerce, cloud computing, artificial intelligence, and blockchain enable small enterprises to access new markets, customers, suppliers, partners, and information. They also reduce the costs and barriers to entry for starting and running a business. Globalization also opens up new opportunities for small enterprises to expand their reach and scale their operations across borders. Furthermore, environmental challenges such as climate change, resource scarcity, and pollution create a demand for sustainable solutions that small enterprises can offer. Social trends such as urbanization, aging population, health awareness, and social responsibility also create new niches and segments for small enterprises to cater to.

On the negative side, technological advancements also create new risks and uncertainties for small enterprises, such as cyberattacks, data breaches, privacy violations, and digital exclusion. Globalization also exposes small enterprises to more competition and volatility in the global market. Moreover, environmental challenges such as natural disasters, pandemics , and regulatory changes can disrupt the operations and supply chains of small enterprises. Social trends such as inequality , polarization , and populism can also affect the stability and security of small enterprises.

Therefore, the global demand for small enterprises is changing in both positive and negative ways. Small enterprises need to adapt to these changes by leveraging their strengths , addressing their weaknesses , seizing the opportunities , and mitigating the threats .



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