Introduction Globalization is a structure of cooperation among different countries around the globe in order to strategize on how to improve world economy. In other words, it is the integration of markets from different states with a view of advancing market segments to the global market. We have both positive integration and negative integration, where positive integration focuses on standardizing global laws and policies. Negative integration involves abolishing of trade regulations, such as, tariffs. Though globalization widens the market for countries’ products, it has both positive and negative effects on small and medium sized businesses (SMEs). We will look at the major challenges that small enterprises are facing in Kenya due to globalization and how these problems may be put to rest. Small firms usually compete well in domestic market than in the foreign markets because of the power they have locally that is set by the market. The only way that could make these firms to survive from being eliminated from the market is through government protection. Local government may apply several measures to strengthen local firms and industries and prevent them from unfavourable pressure from external markets. Local enterprises employ up to 50 per cent of citizens in the country, this reflect how these firms play a major role in gross domestic product (GDP) growth of the economy (Wright & Etemad 2001). It is evident that the local businesses if eliminated by these foreign markets could harm the economy of any country. Now let us look at the methods that governments have applied to protect smaller firms in the wake of globalization. Export Strategies An export promotion strategy as viewed by Knight (2000) should be put in place to outline how these small firms could be helped to increase their performance and compete with other bigger firms in foreign markets. The major strategies that can enable these small firms to improve their exports include; well established infrastructure, improved market, and free access to finance. Developing Export Infrastructure If well established infrastructure such as export processing zones and bonded production points are set for the small firms, it will encourage these enterprises to export more and thus increase revenue. In developing countries provision of water, electricity, roads, ports and telecommunication services would boost the firms since absence of these services has been seen as the major obstacles for their expansion (Anazawa 2004). Finance Adequate access to finance would assist these firms to fund their operations and stand a better ground to compete with foreign markets. These firms should be allowed to get loans from financial institutions to enable them expand their operations and stand a better ground for competition (Knight 2000). Strengthening Of Market Channel Many of these small firms have not been able to identify potential markets for their products due to lack of knowledge. This has made these firms find it hard to market their products; this is due to the fact that they have not been able to establish good marketing channels and have weak relationship with potential customers within the market segment. One way that