In the existing global business environment, small is a benefit and often being big is a liability. Hence, several mega multinationals are deciding to establish new enterprises that are alleged to be fast and pioneering outside the parent firm. This allows the new enterprises to experiment with projects and take significant risks.
Micro-multinationals would not only be critical innovators; they would also play a key role in the innovation ecosystems of mega-firms. Micro-multinationals pose an intimidating intellectual threat to the regional innovation systems.
Initiatives from the Government
- Facilitate new ventures.
- Quicken progress towards a complete operating digital economy and advanced intellectual property regimes.
- Identify the significance of globalization and migration. Encourage firms to leverage technology.
- Develop a wide-array of services that can be provided to regional businesses.
- Prioritize education and expertise development.
- Create data that are in sync with the expectations of an advanced economy.
There are several micro-multinationals with a manufacturing base across different global locations. Several small businesses are extending production to develop low-cost products by functioning in this way. These firms wield significant global influence.
Traditionally, micro-multinationals functioned in specialist sectors, including production and technology. At present, the idea is growing in other sectors. These enterprises exhibit real efficiency by decreasing costs, staking their global existence, and challenging the normal business structure.
Being recognized as an international firm is not the status of only mega firms. Establishing in global regions is the specialty of many small enterprises.
Micro-multinationals have similar attributes as multinationals – sourcing raw materials from international locations to reduce costs, leveraging pioneering technologies, and maintaining robust relationships with the consumers.
Benefits of micro-multinational business:
- A key aspect of the international economy. They have similar advantages like other small-to-medium-sized enterprises (SMEs).
- Quickly respond to market transformations.
- Facilitate innovation.
- The nonexistence of institutional apathy that impacts the mega firms.
- Leverage international discrepancies in expertise and labour costs.
- Manage business operations across various time-zones.
- Drive marketing initiatives in several international markets.
Micro-multinationals would transform the face of international business covering various sectors. They would benefit substantially from cross-border trade.
Small firms are becoming the game changers. They have an excellent opportunity to overcome barriers by developing a seamless global value chain. International presence is not restricted to mega-firms; it is possible for micro-multinationals to make their presence internationally.