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What advantages and risks does going global offer a small business owner?

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soman2006 | Student, Undergraduate | Salutatorian

Posted February 2, 2012 at 1:22 AM via web

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What advantages and risks does going global offer a small business owner?

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted February 2, 2012 at 1:29 AM (Answer #1)

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The major advantage of "going global" is that it gives the small business access to a much broader market.  Having a global presence means that the business will be able to sell to many more people than it ever could before.  The major risk is in overextending the business.  As the business attempts to go global, it will have to incur costs that it did not previously incur.  It will also have to go outside its area of competence, having to all of a sudden deal with issues related to its scale (for example, issues of shipping and of dealing with the governments of various countries) that it never had to deal with before.  By taking these risks, it exposes itself to losing money as it tries to expand.

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