The Training and Development Needs of Owner-Managers of Small Businesses with Export Potential

Problem Definition Quebec's small businesses are currently facing the challenge of increased competition as a result of new open markets, especially the recent free trade agreement between Canada and the United States. In such a context, the ability to export is becoming a critical factor in the development and long-term survival of many small and medium-sized firms. As Joyal, Julien, and Deshaies (1993) pointed out, this element is particularly crucial for the more vulnerable firms. These authors identified a number of key factors for determining vulnerability, including size, industry sector, investment potential, and the quality of available computerized production equipment. The results of their study showed that nearly 53 percent of small and medium-sized firms did not export and were not contemplating the possibility in the short- or medium-term. This high percentage is somewhat worrying in the present competitive context. In June 1992, Quebec's Minister of International Affairs, John Ciaccia, deplored the fact that only 13 percent of all Quebec's small businesses exported their products, when nearly 50 percent of the province's economy depended on them (La Presse 1992). Moreover, the share of exports in Quebec's manufacturing sector seems to have fallen slightly in general terms since the early 1980s (Farah-Lajoie 1992). Observations such as these have led to a number of studies aimed at discovering why small business owner-managers do not consider exporting. The results have shown that small firms face certain obstacles to exporting, including lack of information on opportunities and markets (Philippe 1990; Ali and Swiercz 1991; Dichtl, Koeglmayer, and Mueller 1990; Brooks and Rosson 1982); poor knowledge of the distribution and marketing tools required (Kedia and Chokkar 1986; Ogram 1982; Kathawala et al. 1989); and lack of the financial resources required to face the complexities of exporting (Nelson 1984; Chenier and Prince 1990). Beyond these more technical and situational factors, however, it was also found that one of the most important obstacles is the unwillingness of small business owner-managers to consider exporting (Nevin and Cavusgil 1981; Chenier and Prince 1990; Sandberg and Hofer 1987). Amesse and Zaccour (1991) observed that the decision of small firms to export (or not) is profoundly influenced by the owner-manager, and in particular by his or her perceptions and attitudes. Miesenbock (1988) supported these findings, stating that the main decision-maker in the management of a small business becomes the key variable in the internationalization process. A number of other authors have also identified clear differences between the owner-managers of exporting and nonexporting firms in terms of their perceptions of the risks and difficulties associated with the export process and their personal orientation toward international trade (Sharkey, Lim, and Kim 1989; O'Rourke 1985; Axinn 1988; Cavusgil and Naor 1987; Daniels and Goyburo 1976; Ogram 1982). Finally, Leo, Monnoyer-Longe, and Philippe (1992) emphasized the importance of the owner-manager's determination to take the firm into the export market. Given the considerable impact of the owner-manager's personal attitude on the firm's decision to export, it is relevant to consider the various paths available to help owner-managers overcome barriers to exporting and to encourage more internationally-oriented business behavior. In this respect, training and development may offer a potentially interesting solution. As Joyal (1993) pointed out, one of the elements frequently mentioned by respondents in his research with Julien and Deshaies (1993) was the need for training to better satisfy requests from outside markets. Both the business community and the government/parapublic sector are aware of the need to intervene at the executive level to encourage internationalization through training and export support programs. …