Internal Memorandum - Article Example

Harris Kamran Business Memo 12 October Apple in Europe: Memo Rationale: the article “Why no Apple in Europe” by Frymovich is suitable for this memo as it deals with the current state of the business environment in the European Union, the problems the young entrepreneurs and businesses face, and the reasons behind those problems. It is not only relevant to the nature of the internship, but also gives a chance to study the current international business market situation so that suggestions and recommendations could be submitted to improve the constraints faced by the small businesses in Europe.

Moreover, this article meets the requirements of writing this memo, so it is a suitable choice.Summary and response: Frymovich starts by discussing the current problems faced by the young entrepreneurs and small businesses in Europe, highlights the business environment by submitting facts and figures, and then explores the reasons behind those problems (Frymovich). According to the article, it is very difficult for small firms to get credit or financing for their operations (Frymovich), and to get an open market in the EU, therefore, the majority of the small firms head towards the U.S. where the laws and policies are more favorable and the market more accepting (Frymovich).

It is interesting to note that Europe has almost doubled the number of self employed workers (Frymovich), and if each of those self employed business people were to hire just one more worker, a magnitude of new jobs would be created (Frymovich). However, most of those businesses hesitate to operate in Europe, due to the dearth of venture capital and angel investment, complex government policies and prolonged time periods for government funding (Frymovich), and the lack of acceptance of high risk in the market (Frymovich).

The banks in Europe are still recovering from economic recess (Frymovich), and the firms are protected by the government (Frymovich). This means that downsizing and starting over are more difficult in the EU than it is in the U.S. (Frymovich). Whereas this protection can be viewed as a safety factor for the employees in that they cannot just be fired at whim, and so their economic stability is guaranteed, this safety factor serves as a hurdle for companies which have failed in their venture and want to start anew in some other field of business (Frymovich).

For example, by cutting the credit rating of a failed operation, Germany makes it harder for the business to venture into the market again (Frymovich). Although there are some agencies working for the benefit of the small operations, they are few and far in between (Frymovich). There is some hope for the companies to launch on the internet (Frymovich); however, after the initial set up, there is not much marketing options for them due to the varied laws among the different EU members (Frymovich), and the high cost of across-the-border trading (Frymovich); therefore, many companies, which are very advanced in research and ideas (Frymovich), have to turn away from the European market (Frymovich).

Suggestions/Recommendations: it is suggested that the EU review their small business policy, and make laws aiming towards the benefit of the emerging business groups, especially the self employed parties that have the potential of generating a chain of new employment opportunities (Frymovich). The business policies across the borders should be more unified, even if it means one language for international business, as is feared by countries such as Spain (Frymovich). Works CitedFrymovich, Riva.

“Why no Apple in Europe?” The Wall Street Journal. WSJ Blogs, 9October 2011. Web. 12 October 2011.