The Role of the Internet in the Globalisation of Small to Medium-Sized Enterprises in Ukraine

The development of the small business sector in Ukraine is believed to be central to economic reforms and to the creation of wealth and employment (Isakova, 1997). Given the inherent instability and general weakness of the Ukrainian economy, there have been many internal and external obstacles to the development of small enterprises in a variety of business sectors. However, the recent growth and development of the Internet as a vehicle for business transformation has provided opportunities for small to medium-sized enterprises (SMEs) in Ukraine to enter global markets. The extent to which this is the case for Ukraine and similar developing economies is an emerging research issue, given that various studies have already identified tangible benefits for the growth of SMEs in developed economies (e.g. McWilliams, 1995; Daniel & Myers, 2000; Warren, 2000). This paper looks at the development of SMEs in Ukraine and outlines the factors that have affected their growth. The paper then focuses on the role of the Internet in the globalisation of SMEs, and considers the opportunities and potential limitations created by the Internet. This is then related to how the Internet can transform SMEs specifically in Ukraine, thereby addressing some of the current obstacles to their development. Examples of Ukrainian SMEs using Internet globalisation strategies are provided, and the opportunity for further research in this area is discussed.