Small and Medium Enterprises

SMALL AND MEDIUM ENTERPRISES REPORT: OSCAR TECHNOLOGY
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Small and Medium Enterprises Report: Oscar Technology
Often, large companies are usually the focus of research when it comes to internationalisation. However, in recent years, small and medium enterprises (SMEs) have also received attention for their internationalisation since several of them have successfully penetrated international markets. Traditionally, SMEs are known to be local; only serving a limited market within their home country. But, as revealed by Dabic et al. (2019, p.2), globalisation and technological advancement have allowed SMEs to expand beyond their local operations and into international markets. The world has become more competitive, necessitating the internationalisation of SMEs. Also, technological advancements have reduced physical barriers such as distance which had, in the past, prevented small businesses from pursuing international markets. The focus of this report is to analyse the internationalization of an SME. Specifically, the report will analyse the internationalisation of Oscar Technology, a United Kingdom (UK) based SME. The report will provide a brief overview of the SME, its international business, and other relevant concepts of its internationalisation.
Definition of SMEs
SMEs refer to small and medium enterprises, which are businesses whose number of employees and revenues fall below a specific threshold. The definition of an SME varies from one country to another. In the UK, SMEs fall into three categories namely; micro-, small-, and medium-sized firms. Micro-sized firms employ less than 10 employees and have a less than €2 million annual turnover. Small-sized firms employ less than 50 employees and have a less than €10 million annual turnover. Medium-sized firms employ less than 250 employees and have an annual turnover that is below €50 million (UK Department of International Trade, 2020). Oscar was selected as an SME for this report based on the UK definition since Oscar is a UK-based firm.
Oscar technology: Brief Overview
Oscar Technology is an award-winning recruitment firm headquartered in the UK. It was founded in 2008 in Manchester city but has since expanded to other regions in the United States (US) and the Netherlands (Oscar Technology, n.d.). The main offerings include recruitment services for permanent and contract employment, statement of work, payroll services, and recruitment process outsourcing.
Oscar Technology is a privately-owned firm that employs between 80 -110 employees. It was ranked as one of the best companies to work for in the UK in 2021 because of how it treats its employees (Best Companies, 2021). Currently, its estimated revenues are approximately $13.2 million (€11.2 million) (Growjo, 2021). Based on the number of employees and annual revenues, Oscar is considered an SME in the UK, specifically a medium-sized business. Oscar’s main competitors are Sellick Partnership, which has an annual revenue of $ 14 million, BCL legal, which has an annual revenue of $12 million, Finlay James with annual revenue of $11.2 million, and Kintec recruitment with annual revenue of $10.3 million (Growjo, 2021). Oscar prides itself in forming lasting partnerships with candidates and clients, which allows it to provide excellent recruitment solutions by connecting companies with the most talented workforce.
Over the years, the firm has rebranded itself to enhance its competitiveness. In 2014, the firm rebranded into two brands namely; Oscar Technology and Oscar Energy. Currently, it has three powerful brands namely; Oscar Technology, Oscar Energy, and Oscar Construction (Oscar Technology, n.d.). Oscar Technology offers digital and technology recruitment services, especially in technologically advanced cities. Oscar Energy focuses on providing recruitment services to firms and candidates in the energy sector while Oscar Construction focuses on offering recruitment services in the construction industry. The Oscar Construction brand was launched in 2018 to provide white-collar recruitment services in the US (Oscar Technology, n.d.). These services are offered by the Houston, Texas, office.
Findings: Oscar Technology International Business
Oscar started as a small business based in Manchester city. Four years after it started its business, Oscar decided to internationalise. It opened its first international office in 2012 in Houston, Texas, US (Oscar Technology, n.d.). Houston is one of the busiest and most populous cities in the US. By moving to the state of Texas, Oscar could provide recruitment services to companies in some of the main industries such as manufacturing, energy, information technology, and biotechnology and life sciences (Office of the Texas Governor, n.d.). Texas is the largest producer of crude oil and natural gas in the US and as such, it has a vibrant energy industry that Oscar serves through its Oscar Energy brand.
In 2019, Oscar opened another office in Austin, Texas, and also entered the Netherland market by opening an office in Amsterdam (Oscar Technology, n.d.). The move to open another office in Austin was to ensure that Oscar could reach the wider Texas market. The decision to open an office in Austin was considered a strategic move because Austin is home to many tech firms such as Dell, Apple, and IBM (Milburn, 2019). Many companies that offer internet-based services, e-commerce, and hardware/software manufacturing are located in Austin, making the demand for tech jobs higher and Oscar wanted to utilize the opportunity to serve this market. Amsterdam, on the other hand, is the capital city of the Netherlands and provides many opportunities for Oscar. Amsterdam is a competitive city that not only boosts the economy of the Netherlands but also most of Europe. It is a source of attracting talent and is home to many start-ups (the City of Amsterdam, n.d.). Therefore, the Amsterdam office was also a strategic move by Oscar to reach mor...