How Globalization Affects Small Businesses in the United Arab Emirates

Introduction

In the recent years, globalization has been debated many times. More questions have been raised about the effects, especially its negative effects on a number of global operations, such as small business and enterprises. Apparently, a detailed analysis of the effects of globalization should begin by making people aware of what it entails and the main parties or individuals involved in the process. The term ‘globalization’ has been common among individuals across the globe since the 1980s. At the time, there was frequent movement as well as migration of individuals from one region of the world to another freely. This saw a rise in international trade activities among countries. However, what does the term ‘globalization’ mean? Globalization is an international integration process that is as a result of the drastic change in how people view the world, its products, ideas, and cultural aspects (Ritzer, 2010). In the recent years, there have been serious advancements in global infrastructural aspects, such as telecommunications and transportation. Today, experts argue that the world is a global village, and this is underscored by the fact that it is easier for people to move from one region of the world to another in the modern world as compared to the ancient world.

Developments in the global transportation sector have seen the introduction of air transport, rail, and water as well as road transport that have facilitated movement of people. The telecommunication sector’s advancement has been boosted by the inception of Internet. Today, through social media, people are in a position to communicate with others who are miles away. Apparently, the rise in globalization has had positive and negative effects on various global activities. First, globalization has been an integral factor in global unity and political stability. It has also been a major contributor towards the achievement of a steady global economic growth. Without globalization, successful international trade would still be a dream for the world economic superpowers, such as the United States and China. A major concern in the modern-day generation is how globalization has affected a number of global operations, especially small businesses. Despite the happiness and appreciation that the proprietors of large business owe to globalization, small business owners have suffered greatly as a result of globalization. Arguably, globalization has led to fast growth, expansion, and further development of large and established business at the expense of small businesses. Small businesses across the globe continue to record a significant reduction in sales and losses. To most small entrepreneurs and business-minded persons, globalization is more of a curse than a blessing. The negative effects of globalization extend to the small businesses in the United Arab Emirates. The country specializes in the drilling and distribution of oil. Hence, a large number of individuals have invested capital in the business. However, their objectives are far from being achieved, and this is owed to the rise in globalization.

Progrind International Oil Field Redress Services is a small business in the UAE that faces a number of challenges in its bid to achieve its objectives and goals. Essentially, globalization has played an integral role in contributing to the challenges that the business faces. Progrind International is located in UAE’s most prestigious Abu Dhabi city. It is one of the country’s companies that are doing everything possible to remain relevant and competitive in the Oilfield Contractors and Services industry. The rise in globalization has resulted in small businesses in the UAE’s Oilfield service industry being overlooked. Besides, globalization has led to the dominance of large companies in the industry that share and compete unfavorably with small businesses. Progrind International was established in 2006 and has concentrated more on onshore and offshore oil and gas installations in the UAE. The company is also at the forefront in providing fields services to customers. It has a total of 5 employees who have ensured that every operation runs smoothly, and that both the short-term and long-term objectives of the company are achieved.

Today, the company’s achievement is evident in the myriads of projects that it has completed in various parts of the UAE. The company has been a major force and contributor to myriads of gas installations within and outside the city of Abu Dhabi. Moreover, the company has been a major force in oil installations in Abu Dhabi, which have boosted the country’s transport industry (Hults et al, 2011). One of the objectives of Progrind is to ensure that oil installations are evenly distributed throughout Abu Dhabi and the entire UAE, and this is on the verge of being achieved. In collaboration with the government and other international financial institutions, Progrind aims at coming up with more gas and oil installations in the next two years. The company is gradually gaining recognition due to its struggle to ensure that oil and gas installations are evenly distributed in the UAE. The main customers of the company are local oil and gas retail companies, who target the local transport sector. The company also has foreign customers, though few, who appreciate their efficiency and effectiveness when it comes to gas and oil installations. The company has also been in collaboration with government agencies to facilitate oil and gas installation and the provision of field services. However, globalization has had negative impacts on Progrind International Oil Field Redress Services Company. This is due to the fact that a good number of foreign companies have had the opportunity of establishing themselves in the UAE and dominating the Oilfield Service industry.

Today, because of globalization, Progrind has a number of competitors including Al Ahlia Oilfields Development Co, Extreme Trading Mechanicla Equipment LLC, Masaood John Brown International, PILCO (Pipeline Construction Co), Union Gulf Services, and many other foreign companies. Most of the foreign companies in the Oilfield Service Industry in the UAE have saturated the market with myriads of advertisements on their services and products.

There are various objectives of the research. First, the research aims at determining the negative effects of globalization on small businesses in the UAE, with focus on Progrind International. Second, the research aims at discovering some of the rules, regulations, and policies put in place by the government of the UAE in protecting small business from the dominance of established businesses. The third objective of the research is to determine what small businesses need to do to compete favorably with big businesses in the UAE.

This research is important as it comes up with recommendations that suggest what should be done to ensure that small businesses across the globe do not become extinct as a result of globalization. The research is also important as it targets proprietors of small businesses who will find it useful in their efforts to compete favorably with established businesses.

Literature Review

Background Information

As mentioned earlier, the rise in globalization has had both positive and negative effects on global businesses, and to be specific, small businesses. Thus, several studies have been done on how globalization has affected small businesses. A review of some of the studies is seen below.

Discussion of sources

According to Elizabeth Asiedu in the article ‘The Effect of Globalization on the Performance of Small and Medium Enterprises in the US: Does Owners’ Race/Ethnicity Matter’, there is an argument that the effect of globalization on small businesses has been a major concern worldwide in the recent years. According to the study, globalization has negatively affected the performance of small businesses across the globe. The study gives three channels through which globalization affects small businesses: competition, labor market, and linkages. Asiedu opines that globalization has led to an increase in global investments that have seen an increase in the number of big and established businesses in various parts of the world. The implication is that the increase in the number of established businesses has been accompanied by intense competition in various markets and industries. Although the long-term effect of the competition in the available markets and industries remains unclear, there is an insinuation that the increased competition among businesses caused by globalization could see small businesses and local firms reducing the prices of their goods and services. The latter could lead to a significant reduction in the profitability of small businesses across the globe.

Nicole Benson (2013) in the article “In what ways the globalization affects the domestic economic recovery” argues that globalization has had a positive influence on the global GDP. Benson (2013) articulates that globalizations has led to a significant increase in trade, technological advancements, as well as increased economic integration that have led to positive economic growth, and this has been of great benefit to small businesses in every corner of the world. Benson (2013) adds that globalization has led to an increase in the effectiveness and efficiency in how various countries produce and distribute their products. This has led to an increase in the global economic productivity, which has impacted positively on small businesses. Regarding the negative effects of globalization on small businesses, Benson (2013) states that large and well-established companies have turned to outsourcing to lower the costs of labor and products as a result of globalization. On the other hand, small businesses lack the ability and capital to outsource, and have stuck with high costs of labor and products that have driven away potential customers.

Lewis-Ambrose (2009) in the article “The Globalization of Small Businesses: The Virgin Island’s Perspective” articulates that there has been a global concern on the effects of globalization on small businesses. According to the article, globalization has greatly interfered with structural organization of small businesses. This is owed to the fact that as a result of globalization, small businesses have experienced limitation in resources and skills and thus managers of small businesses have considered their leadership roles less significant as compared to the managers of large and well-established businesses. This has destabilized most small businesses leading to a huge reduction in their profitability. In the same vein, the article argues that globalization has increased licensing costs for businesses, and the fact that small businesses have limited capital and resources has been a challenge in the registration and purchase of licenses.

Moekotte & Freye (2008) argue that globalization has led to a significant increase in the number of Multinational Corporations (MNCs). The two argue that today, small businesses find it hard to compete with the ever-increasing multinational corporations. In order for SMEs to compete favorably with MNCs, they have to unlock new opportunities and come up with innovations. The cost of bringing in innovations is higher and this is the disadvantage or challenge that small businesses across the globe face. In fact, Moekotte & Freye (2008) state that several SMEs have been forced to close down because of the stiff and intense competition from Multinational corporations that are on the rise because of globalization.

Sukh Deo (2013) in the article “The Impact of Globalization on Small Business Enterprises” argues that in the world today small businesses have a crucial role to play in the strive towards global economic development. Deo (2013) states that globalization has had a positive effect on small business enterprises (SBEs). This is because through globalization, the interdependence of economies as well as businesses has been enhanced. This has given SBEs the chance of creating several job opportunities as well as enhancing rapid global economic growth. According to Deo (2013), as a result of globalization, small businesses have developed flexible and excellent structures of governance, and these have enhanced the faster implementation of decisions. The advantage that SBEs have over large corporations is that they take less time in coming up with decisions that lead to the modification of systems, production of products and services, as well as the relationship with customers. However, globalization has also been accompanied by several negative effects that have hindered the growth and development of small businesses. For instance, a good number of small businesses worldwide have a limitation in terms of skills, capital, and resources that are prerequisites for the operations in globalised markets. The insinuation is that several small businesses have failed since the inception of globalization.

The article “7 Tips for Accountants on Supporting the Globalization of Small Business” states that small businesses are significant to the global economic growth. This has been catalyzed by the fact that globalization has led to a change in the global infrastructural technology that has seen small businesses become regular manufacturers and distributors of goods and services from one country to another. In other words, globalization has given small businesses an opportunity of carrying out operations that were previously meant for multinational and well-established businesses. The article articulates that while globalization influences SMEs positively, it also exposes them to myriads of challenges. According to the article, globalization has led to small businesses facing problems such as the lack of financial support and resources, the lack of expertise in managerial-related issues, as well as the lack of human labor.

Kose et al in the article “How Does Globalization Affect the Synchronization of Business Cycles” argue that through globalization, there has been a significant rise in international business co movement, especially in the already developed and developing countries. Kose et al (2003) state that because of globalization, there has been an increase in international trade operations and this is owed to the increased demand and supply of goods and services from one country to another. The insinuation is that small businesses have capitalized on the increased international trade activities to thrive economically. However, the article also touches on the negative impacts of globalization by stating categorically that globalization has led to global macroeconomic fluctuations that have hit small businesses hard. The fluctuations have been in terms of the prices of sold goods and services, as well as that of maintaining small businesses.

Anele, in the study “Globalization: Effects on small-scale business development in Nigeria” states that the success of most businesses especially small businesses depends on globalization. Through the study, Anele is in support of the fact that globalization has had positive effects on small businesses. This is owed to the fact that currently, in several countries such as Nigeria; small businesses have developed rapidly in terms of income generation, job creation, as well as the improvement of social systems. Anele’s study also underscores the fact that globalization has resulted in the spread of economic innovation in every corner of the world, and this has been beneficial to the development of small businesses. It should also be noted that Anele’s study mentions a few negative effects of globalization on small businesses in Nigeria. First, she argues that globalization has brought up the challenge of illegal smuggling of goods into Nigeria, and this has affected small businesses because of the low costs of the smuggled goods. Second, Anele states that globalization has influenced small businesses in Nigeria negatively because of the accompanying lack of capital that is caused by the high interest rates imposed on small businesses by both local and international financial institutions.

Ocloo et al. (2014) are of the opinion that globalization has seen an increase in challenges that face small businesses especially in African countries such as Ghana. In the study, globalization is defined as the spread of business as well as cultural activities from one region of the world to another. According to their study, although globalization has been beneficial to the entrepreneurial world, it has been accompanied by various challenges that have hit the small business sector hard. Ocloo et al (2009) state that globalization has resulted in unfavorable government policies and regulations for business, and although large corporations have not had a problem with the regulations, small businesses have struggled to cope up with such. They add that globalization has led to an increase in the number of businesses, and this has been accompanied by poor infrastructural development. According to Ocloo’s study, the rise in globalization has led to the insufficiency of market know especially in developing countries. This has greatly affected the development and growth of small businesses. Ocloo et al (2009) also argue that globalization has been accompanied by a drastic change in technology, and small businesses have had a rough time trying to put up with or maintain the technological changes. Their study also argues that globalization has resulted in increased competition in the entrepreneurial world and this had hit small businesses hard.

Haltiwanger (2011) in the study “Globalization and economic volatility argues that globalization has a plethora of effects on the entrepreneurial world, especially for small businesses. Of the positive impacts that globalization has on the business world, the study underscores the fact that globalization has opened up markets worldwide, and has also seen a significant reduction in trade barriers. The implication is that there has been a global increase in productivity, a benefit enjoyed by small businesses across the globe.

Conclusion of Literature Review Discussion

From the previous studies on how globalization affects small businesses, it is evident that small businesses have been influenced both positively and negatively. An outstanding negative effect of globalization as seen in the previous studies is that it has led to increased competition between small businesses and multinational corporations. On the other hand, an outstanding positive effect of globalization is that it has opened markets that have led to an increased productivity for small businesses.

Research Methods and Data Analysis

Methods

As articulated in the Research Plan and Proposal, the data for the study on how globalization affects small businesses in the United Arab Emirates were collected from Progrind International Oil Field Redress Services. The firm was selected for two main reasons. First, the firm is a perfect example of a small business that has faced various challenges because of globalization. Second, the easy accessibility and ease of data collection from the Progrind International’s employees made it a selection for the study.

Interviews

Face-to-face interviews were used in the collection of data during the study. This was used in place of questionnaire to facilitate the collection of data from employees who were not that literate to fill questionnaires on their own.

Questionnaires

The participants of the study were issued with self-administered questionnaires that were designed in the format of ‘Yes’ and ‘No’. The design of the questionnaire gave the respondents an easy time in responding to the research questions. There were several assistant personnel who helped in the data collection through the questionnaire method at Progrind International Oil Field Redress Services.

Observation

During the study, the developments and advancements taking place at Progrind International were observed. This method was used as it facilitated the collection of unbiased information about how globalization affects small businesses.

 

Past Research Papers

During the study, past research papers were used in giving detailed information about what globalization is, and how other SMEs have been affected by globalization. The past research papers provided vital information that was compared to the data collected from the participants of the study.

Audit Reports

Progrind International’s audit reports were obtained from the company’s management. The reports contained all the financial statements of the company from inception until present. From the reports, it could be seen that the profitability of the company was compromised at certain periods and this was attributed to stiff competition that results from globalization.

Online sources

Google is one of the major online sources that the study capitalized on in coming up with information about how globalization affects small business especially in the United Arab Emirates. Google provided detailed information about Progrind International as well as other companies in the UAE competing in the oil service industry. The advantage is that Google facilitated faster collection of data that helped compliment and underscore the data collected through other methods such as interviews, questionnaire, and observation.

Data Analysis

The data collected through interviews and questionnaires capitalized on 30 respondents. There was a presentation of the data and information collected during the study as follows:

 

Questions	Response received for Yes	Response received for No	Total no of responses received	Total percentage of response received
1.      Has globalization affected the activities at Progrind International? 2.      Has globalization increased Progrind International’s employment opportunities? 3.      Can Progrind International do something to evade the negative effects of globalization on the business?	25 (83%)   26 (87%)       23 (77%)	5 (17%)   4 (13%)       7 (23%)	30   30       30	100%   100%       100%

 

As seen in the table, for the first research question, 25 participants responded yes while 5 of them answered no. From this result, there is an indication that globalization has affected the activities at Progrind International.

For the second question, it can be seen that 26 of the participants responded yes while 4 of them responded no. This is an implication that the increase in the employment opportunities at Progrind International and other small businesses in the UAE is owed to globalization.

For question three, it is evident that 23 of the participants responded yes while 7 of them answered no. This is an insinuation that Progrind International as well as other small businesses in the United Arab Emirates are in a position to avoid the negative effects caused by globalization.

Financial Statements

The relevant learning outcome that plays an integral role in the analysis of Progrind International’s financial statements is Financial Accounting. The data collected on Progrind International’s profitability as well as the income generated for various years since the inception of globalization is as follows:

Statement of Income for the financial year 2006

 

Statement of income for the 2007 financial year

From the above data, it can be seen the Progrind International recorded a profit of 22,834 Dh for the 2006 financial year. The profitability can be attributed to the fact that globalization has opened markets and opportunities thus allowing the company to record profits. In the 2007 financial year, it is evident that the company recorded 1,023,565 Dh of profits, and this is a significant increase from the previous year. The massive increase in profitability can still be attributed to the influence of globalization. However, a few participants confirmed that the profitability decreased in various financial years, and this was attributed to the increased competition from other multinational companies whose influence and dominance in the UAE market was as a result of globalization.

Problems during Data collection

It cannot go without notice that the study at Progrind International Oil Field Redress Services faced a plethora of challenges. First, some of the respondents approached by the research team were unresponsive and this proved difficult for the collection of data. Second, it was realized that some of the respondents approached had no information about Progrind International; hence, they gave false or biased information on how globalization has affected the company. Third, the expense cots for the research were very high. Thus, the research faced financial constraints.

The research team came up with various strategies that helped overcome the challenges faced by the study. The management of the company was approached, and a request plus incentives were given to facilitate data collection from the selected respondents. This helped do away with the problem of unresponsiveness from the respondents. The research team also made sure that the respondents selected for the study were those aware of the situation and occurrences at the company. This helped overcome the challenge of false and biased information from respondents. The research team also obtained financial support from various financial institutions and well-wishers, and this played an integral role in overcoming the issue of financial constraints faced by the research (Godfrey, 2008).

Discussion

After a SWOT analysis (see appendix A) of Progrind International, a scrutiny of the objectives or goals of the research was done. The objectives of the research were as follows:

1. To determine the negative effects of globalization on small businesses in the United Arab Emirates.
2. To discover some of the rules, regulations, and policies put in place by the government of the UAE in protecting small businesses from the dominance of established companies.
3. To determine what small businesses need to do to compete favorably with established businesses in the UAE.

Apparently, the first objective was achieved during the study. From the data collected at Progrind International, it was evident that the company together with other small businesses in the UAE face myriads of challenges such as stiff competition from established businesses, and this is as a result of globalization. The second objective was also achieved during the study as it was found out that the government of the UAE has come up with policies and regulations to minimize the penetration of multinational companies, which make it hard for the local small businesses. The third objective was also achieved during the study. The data collected at Progrind International supported the fact that the company as well as other small businesses in the UAE were in a phase of transition, which would see them enhance the quality of products and services to be in positions to compete favorably with established businesses.

From the data collected, it seems that globalization has both positive and negative effects on small businesses. This is owed to the fact that a good number of respondents are in support of the argument that globalization has led to an increase in employment opportunities at Progrind International. The latter is a positive effect of globalization on small businesses. For the negative effects resulting from globalization, the study articulates that it is essential for small businesses to find ways and means of eradicating such effects. For instance, stiff competition that Progrind International faces from other established companies is a negative effect, and the respondents are in support of the fact that the management of the company should embrace an enhancement of the quality of services and products in order to remain relevant and competitive in the UAE’s oil service industry (Weihrich, 1999).

In accordance to the data collected during the study, it is evident that there is an agreement between previous research and the research done at Progrind International. This is owed to the fact that both previous and the current research argue that globalization affects small businesses positively and negatively. Results from previous findings play an integral role in the interpretation of the current study’s findings.

It should also be noted that the research conducted at Progrind International has contributed greatly to knowledge in the field of the effects of globalization on small businesses. This is supported by the fine details and data collected from the respondents (employees of Progrind International).

Findings of the research

The study focused on three research questions. The first research question as per the questionnaires issued and interviews was whether globalization has affected the activities at Progrind International. 25 of the respondents confirmed that globalization has affected the activities at Progrind International whereas only 5 were against the idea. Going by the majority, from the study, a conclusion can be made that globalization has affected small businesses in the United Arab Emirates such as Progrind International.

The second research question was whether globalization has increased employment opportunities at Progrind International. From the data collected, 26 respondents were in support of the idea while only 4 of the respondents were against the idea. Similarly, going by the majority, a conclusion can be made that as a result of globalization, small businesses in the UAE such as Progrind International has experienced an increase in employment opportunities.

The third research question was whether Progrind International can come up with strategies of evading the negative effects of globalization. From the data collected, it was found out that 23 respondents agreed with the question while the other 7 were not in agreement with the opinion expressed in the question. Again, going by the majority, it can be concluded that small businesses in the UAE can come up with strategies of evading the challenges they face as a result of globalization. The data on which the above discussion was based is as follows:

Data collected

Questions	Response received for Yes	Response received for No	Total no of responses received	Total percentage of response received
1.      Has globalization affected the activities at Progrind International? 2.      Has globalization increased Progrind International’s employment opportunities? 3.      Can Progrind International do something to evade the negative effects of globalization on the business?	25 (83%)   26 (87%)       23 (77%)	5 (17%)   4 (13%)       7 (23%)	30   30       30	100%   100%       100%

 

The research achieved the first objective. Thus, it was found out that globalization has a plethora of negative effects on small businesses in the UAE such as Progrind International. It was found out that one of globalization’s negative effects is that it leads to stiff competition among small businesses and established businesses. The second objective was also achieved. Thus, it was found out that the government of the UAE has come up with policies and regulations that minimize or look forward to ban the continuous penetration and dominance by multinational companies in the country. The third objective was also achieved. It was found out that in order to compete favorably with multinationals in the UAE, small businesses must come up with various strategies of enhancing the favorable competition. For instance, the research found out that Progrind International has capitalized on the enhancement of the quality of its products and services in order to overcome the stiff competition from rival businesses. It was found out that between the years 2006 and 2009, the company faced stiff competition from rival companies, and this resulted to a drop in profitability. However, this changed after 2009. The data is presented as follows:

Profitability of Progrind International between 2006 and 2009

X Axis- Years

Y axis- Percentage profitability

The learning outcome that helps analyze profitability of the company is managerial accounting. From the above data, it can be seen that the profitability of Progrind International was on a gradual decrease 2006, Progrind International’s profitability stood at 90%. In 2007, the profitability stood at 70%. In 2008, Progrind International’s profitability was 50% whereas there was a significant drop with 35% profitability rate in 2009. The significant and annual decrease in Progrind International’s profitability was found to as a result of the rise in competition between 2006 and 2009 (Papulova & Papulova, 2006).

Managerial Accounting also plays an integral role in the evaluation of the performance of responsibility centers. From study, it was found out that globalization had both positive and negative effects on the performance of departments and responsibility centers at Progrind International. On one hand, globalization played an integral in the diversification of knowledge and skills of the employees working in the various departments of Progrind International. This helped boost the performance of various departments at the company. On the other hand, globalization stiffened competition between Progrind International and other small businesses in the same industry, and this demoralized the workers in Progrind International’s responsibility centers and at the long run, the performance of the centers was compromised.

With the help of the learning outcome of managerial accounting, it is possible to assess the impacts of non-financial performance measures on managerial decision making at Progrind International. Apparently, some of the non-financial performance measures that were seen to impact on the managerial decision making at the company include customer service, employee involvement, innovation, as well as market performance. For instance, the employees at the company were greatly involved in the operations of the company, and this impacted positively on the managerial decision making at Progrind International.

With the help of the learning outcome of Corporate Finance, it is possible to assess Progrind International’s capital structure policy, as well as the impact that it has on the company’s value. It should be noted that capital structure is concerned with the how a particular organization finances its activities. From the study, it was found out that Progrind depends on profitability to finance its activities. Progrind’s profitability in 2013 and 2012 is as shown below:

Profits recorded by the company had several impacts on the value of the company. As seen above, there was an increase in profitability between 2012 and 2013, and this was crucial in increasing the value of the company significantly.

With the help of the learning outcome Corporate Finance, it was found out that risk and uncertainty had negative impacts on the company’s budgeting decisions. However, the company was not exposed to risks such as credit and foreign exchange risks. For the former, it was realized that the company has no significant concentration of credit and this had positive impacts on the profitability of the company. Concerning the foreign exchange risks, it was realized that Progrind International is not exposed to major foreign currency risk and this impacted positively on the capital budgeting decisions at the company.

With the help of corporate finance as a learning outcome, recommendations of how to improve financial performance at the company were also realized. First, the study found out that a positive change in the quality of services and products sold by the company would help improve financial performance. Second, it was found out that total employee involvement in the company’s activities would be vital in the improvement of the company’s financial performance.

Recommendations

The learning outcome of managerial accounting also helps come up with a number of recommendations for small businesses in the United Arab Emirates. The recommendations for the future for the small businesses in the United Arab Emirates are as follows:

• There should be alliances among small-scale businesses in the United Arab Emirates. This will provide good platforms for the small businesses to face and overcome stiff competition from multinational and established companies in the UAE.
• The government of the United Arab Emirates should come up with and enforce laws and regulations that govern the business sector in the UAE. The rules that the government should enforce include credibility, transparency, as well as openness, and these will play an integral role in ensuring that small businesses compete favorably with established businesses in the UAE.
• There should be formulation of economic policies in the United Arab Emirates. The policies will play an integral role in the provision of fulcrums for the proper and effective integration of small businesses into the global economic activities that accompany globalization.
• There should be creation and establishment of investment environments that are conducive and attractive for small businesses in the UAE. Such environments will play an integral role in the integration of small businesses of the UAE in the global economic activities.
• There should be an establishment or the building of relationships between small businesses in the UAE and financial institutions. This should also be between small businesses other key financial supporters. The creation of the relationships will help overcome future financial constraints that small businesses in the United Arab Emirates may face.
• The government of the United Arab Emirates should take full responsibility by providing support that can be described as proactive to small businesses within the country’s boundaries. The provision of support will be beneficial for internationalization plans. It will also be beneficial in the achievement of fast-growing international markets for small businesses in the United Arab Emirates.
• The government of the UAE as well as individual investors should step in and help develop knowledge and information resources. These will be beneficial in helping guide individuals who would wish to venture into the small business sector in the United Arab Emirates.

Conclusion

In recap, the research found out that Progrind International as well as other small businesses in the United Arab Emirates faces several challenges such as stiff competition from established businesses, and this is as a result of globalization. The research also found out that that the government of the UAE has come up with policies and regulations to minimize the penetration of multinational companies, which make it hard for the local small businesses. The research also found out that Progrind International as well as other small businesses in the UAE was in a phase of transition, which would see them enhance the quality of products and services to be in positions to compete favorably with established businesses. It should also be noted that the research supported the arguments that globalization has both positive and negative influences on small businesses especially in the United Arab Emirates. For instance, the research found out that one of the negative effects of globalization is stiff competition from established companies. The research came up with data showing that Progrind International faces stiff competition from other established companies in the UAE’s oil service industry. The research came up with several recommendations that if enforced, could see small businesses especially those in the UAE overcoming the threat of stiff competition posed by established and multinational companies. The research suggests that there should be alliances among small-scale businesses in the United Arab Emirates. This will provide good platforms for the small businesses to face and overcome stiff competition from multinational and established companies in the UAE. The study also suggests that the government of the United Arab Emirates should come up with and enforce laws and regulations that govern the business sector in the UAE. The rules that the government should enforce include credibility, transparency, as well as openness, and these will play an integral role in ensuring that small businesses compete favorably with established businesses in the UAE. Formulation of economic policies, creation of conducive investment environments, good relationships among small businesses, provision of support by the government, as well as development of knowledge and information resources are other recommendations that could help address the effects of globalization on small businesses in the UAE.

References

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