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

Globalization is an ever-increasing trend
with
the internet capabilities and the spread of shipping and distribution companies.
Small
business owners now have access to foreign markets that were previously
only available to large
companies with a wealth of resources. This expansion
is both a positive opportunity and a new
level of risk for small
businesses.

On the positive side, a small business
has
access to foreign production (for instance China, India, and Mexico) which offers
cheaper
solutions for their manufacturing or service needs. This can help
them reduce costs and still
meet customer demands. Globalization also opens
up a literal world of market that they can
reachthey can sell products to
countries that previously would have been very difficult to

penetrate.

On the risky side, however, this globalization trend
increases
competition due to those same factors, which is more beneficial for
larger, established
companies. Additionally, outsourcing production or
services to another country mean giving up a
level of control that could
impact your quality or lead times, which is a possible hindrance of
global
expansion for small businesses.