Abstract
Globalization is a multifaceted economic, political, and social phenomenon with profound implications for societies and business organizations worldwide. While this phenomenon has bolstered the prosperity of enterprises in developed nations, it has conversely exacerbated the financial struggles of their counterparts in Third World countries. The strategic alliances and large-scale mergers dominant in Western economies have allowed their organizations to monopolize markets in developing nations, yielding positive outcomes for Western societies at the expense of local industries. This shift has negatively impacted business organizations in developing countries, where the inability to compete—fueled by market liberalization and the influx of global giants—has forced small enterprises into a state of stagnation or defensive retreat, shifting their strategic focus from growth and expansion to mere survival. Numerous organizations have faced insolvency and closure due to technological obsolescence, administrative inefficiency, and capital inadequacy compared to their Western counterparts, the primary sponsors of globalization. Consequently, the concept of Business Incubators has emerged as a critical necessity; small and medium-sized enterprises (SMEs) have begun seeking systemic support, whether through governmental intervention—such as legal protection, financial subsidies, and tax incentives—or through institutional backing from domestic entities aimed at ensuring their continuity. The absence of such support inevitably leads to market withdrawal, resulting in national economic deterioration, heightened poverty, and rising unemployment across Third World societies. Ultimately, this study demonstrates that the pervasive nature of globalization has significantly hindered business organizations in developing nations, rendering the adoption of business incubation essential to rescue these entities from total collapse.
DOI
10.33095/jeas.v13i47.1198
Subject Area
Managerial
First Page
147
Last Page
163
Recommended Citation
Chitheer Al-Rubaiawi, S. H., & Al-Zeidi, N. J. (2007). The Reflections of Globalization in Highlighting the Importance of Business Incubation. Journal of Economics and Administrative Sciences, 13(47), 147-163. https://doi.org/10.33095/jeas.v13i47.1198
