Regulatory framework as the primary reason for (no)internationalization of SMEs


The objective of this article is to identify the barriers in regulatory frameworks that affect SMEs and entrepreneurs’ participation in the international markets. The idea was to analyse how regulatory framework affects an internationalization of Small and Medium Enterprises (SMEs). Member states differ significantly in the way in which they regulate the establishment of new businesses. The reduction of legal burden in European Union is a top-priority not only for the European Commission but also for national legislators. A competitive and dynamic economy requires an adequate regulatory framework so a business friendly environment for existing and potential small and medium-sized entrepreneurs must stay one of the European Union's main objectives. The contribution of this article is to analyse how regulatory frameworks affect the internationalization of Small and Medium Enterprises (SMEs) and suggest ways to overcome the barriers to SMEs and entrepreneurs’ participation in the international markets.


small and medium-sized enterprises (SMEs); regulatory framework; internationalization; legal form; freedom of establishment

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Published : 2016-10-19

GongetaS. (2016). Regulatory framework as the primary reason for (no)internationalization of SMEs. International Entrepreneurship Review, 2(2), 247-256. Retrieved from

Sanja Gongeta
College of Applied Sciences “Lavoslav Ružička“ in Vukovar  Croatia

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