Reverse Globalization by Internationalization of SME's: Opportunities and Challenges Ahead

Small and medium-sized enterprises (SMEs) are powerhouse of growth, jobs and backbone to the nursery of entrepreneurship globally. These are universally acknowledged as major contributors to GDP and even larger contributors to exports and employment and play a crucial role in the Socio-economic profile of nations. In developing countries, more than 90 per cent of all firms outside the agricultural sector are SME's and micro enterprises, generating a significant portion of GDP. This paper would dwell upon the opportunities and challenges for SME's internationalization, their Policy framework, Finance and Market access along with Socio-Cultural Norms with special perspective to Agrobased and Biotech led SME's. Among major problem identified are absence of adequate and timely banking finance, limited capital, access to international market and knowledge management. SME's play a critical role in the economic and social development of emerging markets and their role needs to be strengthened further in view of their contribution towards fostering equitable growth and employment generation. It is imperative to enhance SME's competitiveness, which requires the creation of enabling legal, regulatory and administrative environment, access to finance and capable institutional structures and most importantly, human capital. In order to transform SME's as an agent of reverse Globalisation, Innovation in processes and Policy is imperative. SME's must embrace global changes in cultural norms so that they can survive and find a place for themselves in the global competitive environment. The most important change needed is in the attitude of the stake holders and the mindset of the institutions which are engaged in the task of small enterprise development. Efforts should be made to take full advantage of opportunities made available by globalization. This is possible only through enhancing efficiency and taking financial literacy on mission model