Environmental scanning is important for small business. However, small businesses usually carry out environmental scanning only while starting a business. There are a large number of environmental scanning practices and information sources that small enterprises, according to their particular contexts, could utilize in order to see success in their business activities throughout the international marketplace. This holds true for all globally oriented medium-sized and small businesses.
Uncertainty, the volume of information offered by the sources, and their accessibility by the small businesses determine: (a) the frequency of scanning, and (b) the choice of an information source. Managers of small businesses, in their preferences for information source, do not seem very worried about the internal exploitation of the location-specific advantages that normally characterize the scanning activities of large multinationals.
Does Environmental Scanning Improve Performance of a Small Business Organization?
Several studies have suggested that an environmental survey does indeed improve the performance of a small business. Intelligence-rationality factor that comprises of environmental scanning, communication, controls, analysis, multiplicity, integration, and industry experience is the most significant factor in distinguishing “successful” companies from “unsuccessful” ones, accounting for more than 50% of the observed variance.
Information obtained from environmental scanning is being used more and more by small businesses.