ENTRY MODES AND BARRIERS TO INTERNATIONALISATION OF SMES IN SLOVAKIA

The purpose of this paper is to investigate the barriers of internationalisation of small and medium-sized enterprises (SMEs) in Slovakia. We will discuss trade barriers that SMEs are likely to encounter in export markets. To ensure a greater depth of understanding on SME internationalisation barriers, this paper analyse various approaches to export barriers. Some studies distinguish between internal (associated with limited available organisational resources) or external barriers (which stem from the market environment within which the firm operates). Most of the researchers believe that Central and Eastern European (CEE) enterprises (including Slovak ones) seem to internationalise only in similar countries; the concept of proximity is fundamental in deciding where to expand. In summary, this study examined a number of parameters related to export structures and success of Slovak companies. In particular, the study identified perception of barriers to internationalisation for Slovak companies. This study has used primary data collected through questionnaires from 176 SMEs. Within the external factors, foreign competition showed the highest obstacle for Slovak companies followed by the need to invest in promotional activities and limited access to capital as internal factors. The study summarises the results from the survey of Slovak small and medium-sized enterprises (conducted in 2016) operating in various fields of production and trade. In general, the questionnaire instrument addressed the issues of company characteristics, respondent characteristics, level of international involvement, entry mode and perceptions related to barriers to internationalisation.