engleski

Globalization and development of the small and medium enterprises in the EU

The EU economy and other world economies are significantly influenced by globalization. This process includes freedom of movement of production factors on the global market. Globalization affects all segments of the economy, and especially small and medium- enterprises, which occupy the largest share in the structure of enterprises, in employment and the overall added value. The research problem of this paper stems from the still unknown effects of globalization processes on the European small and medium enterprises Globalization could result in potential negative effects on competitiveness, labor market, and the emergence of various forms of unfair trading practices. This research aims to provide an overview of the theoretical aspects of globalization, to analyze the current state of small and medium enterprises on the EU Internal Market and to identify scientifically based challenges and perspectives of the development of European small and medium enterprises in the context of globalization. The purpose of the research is to determine the effects of globalization processes on European small and medium enterprises. By conducted research, positive effects of globalization on the European small and medium enterprises were identified. Effects of globalization are mostly evident in increasing numbers of active enterprises, increasing levels of employment and total value added. On the other side, the key challenges of the small and medium enterprises in the context of globalization arise from new demands of consumers and problems in finding adequate workforce. The conducted research is based on secondary data collected from relevant international statistical databases and official publications and research of European and international organizations.

EU, globalization, Internal market, small and medium enterprises

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