Abstract:

The business environment globally is perceived to influence the performance of enterprises. The external business environment consists of extraneous factors that are beyond the control and cannot be manipulated by the business enterprise management. The business enterprise is obliged to be cognizant with its operating environment in order to heighten its performance. An international expansion process is necessary because, from a national view, economic separation from the world market has become impossible. Failure to participate in the international market assures declining economic activity of a nation (Czinkota & Ronkainen 2004). A strong small and medium enterprises (SMEs) sector contributes highly to the country’s economy, contributing to the gross domestic product (GDP) by reducing the level of unemployment, reduction in poverty levels and promotion of entrepreneurship activity. Small and medium enterprises (SMEs) and entrepreneurship development have become a progressively more imperative component of economic development (Karpak & Topcu, 2010). Both SMEs and entrepreneurship development have been internationally acknowledged as instruments for realizing economic growth and development as well as bringing about employment opportunities (Benjamin & Rebecca, 2009).