The United Kingdom Department for International Development defines globalization as a growing interdependence and interconnectedness of the modern world. This is facilitated through the increased flow of goods, service, capital, people and information. Globalization is driven by technology and reductions in the costs of conducting international transactions. There is an inevitable spread of these technology and ideas, increase in the share of trade in world production and increases in the mobility of capital (DFID, 2000a). Globalization has evolved through phases dating back to the 1800s (Cavusgil, Knight and Riesenberger, 2014: 63) and continues to integrate more countries into the global market with the enticement of economic gains by virtue of increase trading of goods and services. The rapid advancement of technology, air and sea travel, establishing of world organizations and advent of the internet have facilitated the power of globalization to a level never seen before. However, with the benefits of globalization, come the adverse implications that can have a significant impact on a country. Trinidad and Tobago has engaged in global trading for many years. Natural resources, Free Trade agreements, lowering of tariffs and continuous negotiations amongst regional and international partners have enabled Trinidad and Tobago to be a player on the global market. Globalization can be considered an opportunity for phenomenal economic gain but also it can have a detrimental impact on a country’s sovereignty if not managed carefully. Globalization has impacted Trinidad and Tobago’s business community in terms of lack of innovation, their competitiveness on an international scale, and their ability to retain competent and skilled labour.
The business community of Trinidad and Tobago has to constantly challenge their innovativeness if they are to compete on the global market. Innovation can be defined as the exploration and establishment of new methods of managing an organization’s daily functions. It encompasses the renewal and enlargement of the range of products and services in the associated markets. The new methods can range from production, supply and distribution, changes in management, organizational structure, working conditions and the training and skill competencies of the workforce (European Commission 2003). The government of Trinidad and Tobago needs to engage the small and medium sized business communities in actions that can directly stimulate the creation of business in new areas of technology, agriculture, tourism, energy and entertainment. This may not necessarily entail developing absolutely new products or services but can involve enhancing existing products through the work of innovators. The creative talent and skills that this country possesses have to be channelled towards supporting businesses in order for them to remain or become competitive. According to the United Nations World Institute for Economic Development Research, countries like China and India have seen an increase in the developing of small, private innovative entrepreneurs over the last decade. Deconstructing that approach, analysing the mechanisms necessary and execution of similar actions plans in Trinidad and Tobago can promote the development of entrepreneurial ventures which can lead to economic growth. There were approximately two hundred thousand persons employed in Small and Medium-sized Enterprises (SMEs) in Trinidad and Tobago between 2010 and 2012. The number of these enterprises ranged from 18,000 to 20,000 and contributed to approximately 25% of the country’s Gross Domestic Product (GDP). This percentage, when compared to an emerging market such as India, where SMEs contribute to 22% of that country’s GDP, shows that we are moving in the right direction. The objective should be aimed at reaching the percentage contribution that countries like Japan, South Korea, United...
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