Barriers in the Internationalization Process of the Emerging SMEs: A Desk Study from Bangladesh Context

Akhter Jahan


Different barriers and challenges are faced by small and medium-sized enterprises (SME) since the beginning of their internationalization process in different countries. In developing countries, like Bangladesh, SMEs face challenges due to the dependence on less educated managerial staff for strategic formation and external support for internationalization process. However, SMEs in developed countries also face challenges due to low incentives for internationalization and high bank interest rate. Furthermore, the growth of SMEs in any country depends upon the availability of resources and support of external organizations. SMEs are considerably small compared to large organizations and they do not have enough resources to survive in the international market. In developing countries, SMEs face more hurdles because of less availability of resources and external support for their internationalization process. At the initial stage of the internalization process in Bangladesh, SMEs need more financial resources to make investment in capital-intensive projects and educated management for strategic formation. However, SMEs in developed countries are in their initial stage thus requiring financial resources on low interest rates as well as guidance to find representatives in the international market. The external organizations in both markets should support SMEs in meeting challenges and overcoming the barriers in their internationalization process.

Aus. Aca. Busi & Eco. Rev Vol 2(1), January 2016, P 40-61


Internationalization; SME; Barriers; Challenges; Bangladesh

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