Impact of Globalization on Small Businesses
Globalization means international integration of economy
through businesses. Different countries have different areas of specialization in
businesses. The companies that come under the banner of global are the economically
sound big companies. Impact of such globalization on the small businesses is bad.
In this essay I will elaborate my view point.
The society of all big businessmen is a “capitalist’s
society”. Once the giant corporations like Wal-Mart comes in the town, the poor
grocers are mercilessly thrown out of business. The small grocers with decades
of their hard work and investment have established a customer base and friendly
relations with the community can never deliver goods at as low rates as offered
by Wal-Mart. Such giant companies have tremendous resources and can afford to sacrifice
their profit margins to local competitors. As a result the small businessmen go
bankrupts.
Small businessmen monetarily can’t afford big advertising
campaigns like biggies. Also small businesses don’t have the advantage of
forging outsourcing partnerships with foreign companies or factories, hence
small companies are at a disadvantage with regard to pricing of their products.
In fast food sector, KFCs, Pizza Huts, McDonald’s and
Starbucks are the giant MNCs. Those have a severe negative impact on small
fast-food stalls and restaurants. Also big MNC’s have come up on the highway
sides too that totally mars the business of small restaurants’, and *dhabas (*Roadside
small inns for motorists). Small businesses can’t afford outsourcing that is
the biggest disadvantage.
In conclusion, small businesses have severe negative
impact of Globalization.
(251 Words)
