During the last two decades China has become the largest emerging country and the fastest-growing. Since the internationalisation of small business enterprises (SMEs) is crucial for the country’s future economic development, this paper studies the barriers to domestic growth and international expansion of China’s SMEs. The data was analysed using 6 multivariate regressions where the dependent variables were the percentage of sales outside the Ningxia region (at three levels, regional, national, and international). The results of the analysis present a situation where 8 internal and 2 external barriers are hindering the expansion of Ningxia’s SMEs across the region’s boundaries. Regardless the absolute difference in the number of barriers, it is possible to argue that the most important barriers are internal, and that the lack of relevant skills and knowledge is the main factor affecting the companies’ expansion.

The All China Economics (ACE) International Conference
Incae Business School

Cardoza, G, & Fornes, G. (2007). Barriers to National and International Expansion of SMEs in China: The Case of Ningxia Hui Autonomous Region. Presented at the The All China Economics (ACE) International Conference.