Introduction Globalization is the integration of economics, such as exchange information, products and money throughout the world. Globalization and socio-economic development would contribute to increase in economic growth and wealth. From a business perspective, globalization opens many markets to the businesses.
However, globalization, similitude culture, governance system and gap of economy that became the challenges to small businesses. In Malaysia, small businesses hardly get attention on economic development, although they act as a significant role in Malaysia’s economy, which provide new job opportunities and increase the gross domestic product. This was because small businesses face many obstacles such as bureaucratic procedures, legal constraints, scare resources and lack of experience and skill, which tend to affect their performance. The case study provided many ways to assist the Malaysian small businesses which include the construction a corporate and persistent small businesses society, enhance domestic governance systems, awake public attention and enhance innovation and ability in small businesses. The food court which is a type of small business in Kuala Lumpur, Malaysia was discussed in this case study. Summary Around the world, small business has bring a contribution to the country’s economy Small businesses provide employment opportunities and developing entrepreneurial skills for ordinary to increase their experience in business. Small business able to fulfill specific customer demands faster due to their flexibility and agility.
When economic downturn many self-employed turned to run small business and these operation can encourage the country’s economic growth. Therefore small business operators should be supported by public institutions and large corporations to continue develop. Globalization effect the social relationships between the corporate manages and their small businesses tenants’ especially western education and training.
Globalization in terms of open competition have given a direct challenge to traditional work values and systems to small business which are still unprepared. Cultural homogeneity influence market behavior such as increasing prices of goods and services. The growing of economic gaps and income gaps are usually to the direct effects of open competition on weaker players in the business who lack the ability to fight back. Besides that, lack of legal protection and disunity constitute a major threat to the operators. In contrast, to protect the interests of the small player Malaysia needs more effective law.
Bar council can protect the legal position of small businesses through providing legal advice at lowest cost. Small and Medium Enterprise Development Corporation can help businesses to find alternative business opportunities and relocate their premises has a similar strategic spot. Major reforms are business ethics and corporate social responsibility is required. Small business also need to raise public awareness on the importance of corporate social responsibility and good governance in preserving the welfare of society. A small business community leads the mission through use of information technology, social networks and systematic public campaigning. Organization that have ability to maximize performance at minimize cost is an efficient and effective organization.
Information technology should be used to help small company in research and marketing. Information technology providing online access to new product knowledge, promote the business through websites and social media that can help to expand small business. Critique In the article, the case study is focuses on food court in Malaysia as one of the small business in the market. However, the focus on only one sector as the example to explain the effect of globalization towards small business is insufficient. It is difficult for readers to see the whole picture of the effects globalization. Few more studies should be done in other sectors in other states and included in the article, so that it will become a more detail and a knowledgeable journal to readers. Besides that, economic disparity is just mentioned briefly in the journal.
Although the main title is not too focus to the economic disparity but at least elaborate more about its effects towards the Malaysia market and towards small and medium enterprises. This can let the readers know more about the effects of economic disparity on Malaysia market and about readers themselves. The information gathered in the journal about the case study is adequate and were elaborated in details, like the dates, the situation, change of management and etc. Readers have the whole picture of what had happened before and after which lead to the evacuation of food stall operators and the failure of the operators to fight back for what they deserve. For example, initially the femininity and collectivism corporate values used by the first batch of Pro Clean managers to deal with operators had changed to masculinity and individualism which practiced by those young batch of executives. The introduction is so informative which have explained the role play by small business in Malaysia’s economy when the Asian financial crisis in 1997. It has explained the situation where large firms were downsizing and many have turned to the small business sector. However, small business still hasn’t gotten the attention and supported by public institutions, society and other larger corporation. The diversified recommendations provided in the journal are useful and informative. It provides significant action or steps and agencies to all readers which will come in handy when something similar is happening to anyone.
For example, it suggested the operator of The Kitchen should unite in order to catch the attention of local leaders and could resorted to collective bargaining through relevant non-government organization and trade association. Conclusion After I finished reviewing the article, I think this research was quick nice but still need to give the suggestion for a few things. In my suggestion, I think the writer needs to do more research from other sectors such as manufacturing and services sector. Different sectors have their own positive or negative view regarding the effect of globalization.
This is because, every different sectors have their own potential level, some of the small business thinks that globalization provided good opportunities that can increase the profit but some of small firm think that as a challenge of competition. Therefore, information from different sectors should be collected for analysis then the resulting will more accurate and detailed. This is because, research from one sector may be unpersuasive to explain the whole impact of globalization of small business. Economic disparity exists between small firm and larger firms because the impact of globalization. This is because, global market provides benefits and opportunity to increased competitive pressures on firms.
Therefore, larger firm will earn more profit and small firms will face challenges of competition. However, most of the small firms are difficult to entry the global market because less of competitiveness, and lack of experience to challenge with the larger firm. Small firms are generally less well-equipped to face rise in international trade, lower productivity will difficult to compete and hard to removal of tariff barriers with limited resources when compared to larger firms. For example, smaller firms lack the economics of scale cause less costly per unit for the international corporation. In reality, the Small business is a pillar of Malaysia’s economy. Since 1997, large firm has relocated laid-off workers and turned to small business due to occur Asia Financial Crisis. At this time period, small business provides the job opportunities for those employees who have been laid off from larger corporations.
Besides that, income earned from small business also as a part to encouraging the country’s economic growth. However, Small business hasn’t gotten the supported by larger corporations, society and public institution and hamper their flourish though bureaucratic procedures, legal constraints and other. In my suggestion, I think that every department especially the government should pay attention to concern the development of small business. For example, the government should provide alternative opportunities, incentive and subsidies allow the smaller firms compete in the global markets. The final part of the 4 recommend measure were presented in the journal have efficient and effective functioned to improve survival rates for small business in the global market. However, I think the supply chain also as a measure that can be improve small business ability and productivity. This is because the purpose of supply chain management (SCM) is to maintain mutual trust and cooperation between partners in Supply Chain to enhancing the inventory Visibility and the Speed of stock movement.
Therefore, SCM can help small business reduce cost, Increased Output and increase profit though design, planning, execution, control, and monitoring of supply chain activities. For example, cost reductions from elimination of wasteful processes that can be increased company profit.
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