Internationalization Propensity of Small Scale Enterprises in Kampala, Uganda

Abstract

This paper unequivocally focuses on the question of “how” (mode of entry), rather than “when” (timing of market entry) or “where” (location) to enter a foreign market. Therefore sought to explore how (mode of entry) and the levels of internationalization among selected small scale enterprises in Kampala, Uganda. In so doing it identifies the propensity of small scale enterprises to internationalize in the context of Kampala, Uganda. Data was collected through self-administered questionnaire and a total of 409 responds were received. The findings revealed that the mode of entry/internationalization is dominantly sporadic exporting and internationalization levels as a whole is very low among the small businesses considered in the study. A peripheral finding in this study was that most of the internationalization efforts were focused on neighboring countries (location). The recommendation was made that small businesses should be encouraged to establish more networks in foreign markets to instill more confidence and willingness to internationalize on a larger scale.