HOW ITALIAN SMALL AND MEDIUM ENTERPRISES ENTER INTO THE CHINESE MARKET

Abstract

During recent years, many Small and Medium Enterprises (SMEs) have started to internationalize in foreign markets. The main reasons for this process are essentially two: globalization and the economic crisis that affected the West.

Nowadays, emerging markets, like the Chinese one, offer great opportunities for Italian SMEs. However, every SME in China has to face lots of problems that arise in particular due to the cultural and geographical distance. The first chapter of this thesis is introductive. It will explain what a Small and Medium Enterprise is and its relationship with China: possibilities, opportunities and issues. The second chapter, lists all the entry modes that SMEs usually use, divided into indirect (export, franchising and licensing agreements, e-commerce and online advertising) and direct commercial presence (Representative Offices, Joint Ventures and Wfoes). The pros and cons are shown for every method. The third chapter concerns consulting agencies and the most important Italian and European organizations, that can help Italian SMEs in the entry process. This thesis is both theoretical and practical, helping Italian SMEs in a competitive and huge market: the Chinese one.