Globalization, in the business context, is not just about seeing a McDonald’s on every street or a small start-up outsourcing their programming to India.
For start-ups it can mean: a) realizing the potential of a global customer base and, b) the potential of a global employee base.
Business 2.0 had a great article a few days ago on the mighty micro-multinational. When the fascinating trend of micro-businesses — ideas which require little capital and target niches — meets globalization, you get micro-multinationals.
The benefits for a small company becoming globalized are not limited to cheap labor in developing countries. Instead, it’s about finding the best talent, period. The risks of a more decentralized, impersonal workplace are meaningful but with diligent focus on processes and collaboration technology, it can work. This also means individuals armed with cultural and linguistic skills, and contacts, are going to be in high demand.
Thanks to Shantanu Bhagwat for the link, who writes a great blog on globalization and European VC.