Four ongoing global events that small businesses should keep an eye on.
Thanks to globalization, it really is a small world after all That’s why it’s absolutely necessary for companies to keep up-to-date on current international happenings.
Global commerce is no longer restricted to the big players. Small and medium sized business owners are currently being incentivized to increase their international activities, and they’ve been pleased to discover that their products perform well in global markets.
A study by Wells Fargo shows that 54 percent of mid-sized U.S. businesses see international markets as increasingly important to their financial success. And 69 percent of businesses that already have an international presence believe that their global standing will continue to grow.
But all of this can come crashing down if they don’t keep tabs on the international climate. Possessing a solid understanding of global happenings helps business leaders make better decisions and lead their companies in the right direction. They know the appropriate times to enter a market, abandon ship, or seek alternatives. These are all vital business decisions, and it’s wise to be as informed as possible.
Here are four ongoing global events that small businesses should keep an eye on:
1. The U.S. Doesn’t Support China’s New International Bank
Last year, China revealed its plans for an international bank to fund infrastructure projects in Asia. While the U.S. refused to back this endeavor, possibly fearing that it would weaken its influence on the global economy, Australia, Japan, and the U.K. supported it. Many African leaders also backed the bank, saying that Asian and African nations weren’t receiving enough support from existing institutions like the World Bank and the International Monetary Fund.
China is always worth keeping an eye on, but its growing tension with the U.S. regarding this bank is especially compelling. Small businesses involved with international trade or manufacturing in China need to remain vigilant and be ready to adjust to any fallout.
2. The U.K. Might Leave the European Union
In early 2013, Prime Minister David Cameron proposed an in/out referendum to determine the U.K.’s EU membership by the end of 2017. Cameron was recently re-elected, with his current term expiring in 2020; it’s likely that he will keep his word. The next two years might be the most pivotal in Britain’s postwar history.
Small businesses need to be aware of the high-level economic impact this could produce. The EU is a large acting force in the global market, and the aftershocks of a British departure will undoubtedly be felt throughout the business world.
Next- Ongoing small business events 3 and 4
About the author
Luis Gallardo is a global brand and marketing leader and expert in the areas of strategic brand management, brand engagement, brand expression, marketing, communications, business development, and reputation management. Former managing director of global brand & marketing at Deloitte, Luis provided leadership to Deloitte's member firm network of more than three thousand marketing and communications professionals. Author of the book: Brands & Rousers, The Holistic System to Foster High-Performing Businesses, Brands and Careers. Luis is the founder of Thap Group, a multinational consultancy focused on brand, marketing and communications strategy, and he sits on the advisory board of several high-growth organizations.