International Entrepreneurship: Meaning And Opportunities
International Entrepreneurship, Meaning, Opportunities, Examples, Importance: One of the most vital driving forces behind the growth of economies, individual and regional wealth, and social development is the Entrepreneurship. It will only happen in the developing and emerging markets around both commercial sectors as well as in democratic political systems.
Also See: Different Types of Entrepreneurship
In today’s era, the global dream of an Entrepreneur across the globe is Entrepreneurship and When the business covers all areas within own country, then they will think about moving towards International Entrepreneurship. In the domestic market, it is helpful to improve the business values.
Another best reason to move forward with the international Entrepreneurship is that if the sales of a business are quite low domestically, then it is better to go beyond the borderlines. When the high level of maturity is achieved in the domestic market, then it is the best time to shift towards international Entrepreneurship and maximize their profit.
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International Entrepreneurship, Meaning, Opportunities, Examples, Importance
Here, we are going to discuss the international Entrepreneurship to get the relevant info.
Definition of International Entrepreneurship
According to McDougall and Oviatt, “International Entrepreneurship is a combination of innovative, proactive, and risk-seeking behavior that crosses national borders and is intended to create value in organizations.“
What is international Entrepreneurship?
When an Entrepreneur goes to other countries to run and operate their business, then it is known as International Entrepreneurship. These are the industries that cross the national boundaries of their nation. These types of Entrepreneurship include exporting of goods, licensing as well as commencing a sales office in other countries. Under this, an Entrepreneur operates all the business activities out the boundaries of the nation and it indicates the development of the business internationally.
Most of the businesses across the national border to establish value and grow the business. A different set of innovative activities performed by most of the businesses across the borderlines and enhance those opportunities to create some creative products and services.
In short words, International Entrepreneurship defined as the development of a new venture on a global basis, and their operation domain is considered international from the very beginning stages of operations.
Famous Examples Of International Entrepreneurs
There are many industries that have produced numerous international entrepreneurs Coca-Cola, Nike, MacDonald, BMW, Puma, Philips and Tata etc. But most famous entrepreneurs are came from techy world, who started there business from a small ventures but then took it to international level. Some examples are
- Apple- Steve Jobs
- Google- Larry Page and Sergey Brin
- Microsoft- Bill Gates
- Facebook- Mark Zukerberg
- Yahoo- Jerry Yang and David Filo
- Amazon- Jeff Bezos
- Alibaba- Jack Ma
- Tiktok- Zhang Yiming
International Entrepreneurship Opportunities
Entrepreneurial opportunity means the situation where cost of production is less than the selling price of the products or you can say where an entrepreneur can make profit by selling his or her products. Although it’s all in entrepreneur’s mind that how he is going to make profit, and things sorted for his business. International entrepreneurship provides many opportunities to entrepreneurs who are willing to expand their business beyond national boundaries. We have given 5 International entrepreneurship opportunities that are explained below.
- Cultural Opportunity
Every country has their own cultural priority and they love doing it. But people across the country wants to see culture of other countries that how they live their life and what things or products they use. Here a person from other country can take advantages by finding the opportunity of selling products of his culture.
- Food Taste Opportunity
Pizza was originated by Italy; hamburger was made in USA and firstly noodles were made in china. So, all the counties have their own food which it is famous for. An entrepreneur can take benefit from the food taste of country. He can give tasty food of his country to the rest of the world and make an international brand of it.
- Environmental Opportunity
New Zealand and England are too cold, South Africa is warm, Columbia is too rainy. If you are an entrepreneur from any country then you can go to New Zealand and make products that are needed mostly in winter, same is the case for other countries. Think about the environment of any particular country and provide a solution to it and create international entrepreneurship opportunity.
- Filling a Need
International entrepreneurship opportunity can also exist in filling the need of local person from any country. People across the world have their own problems that big brand can never understand. You as an entrepreneur can realize the basic need and provide a solution to them.
- Buying a franchise
There are many franchisees that are making a huge profit and selling their products in millions. As an entrepreneur, one should think about the profit as he or she cannot go for making a new brand and spend time in investing something. Rather one can go for buying franchisee of any international brand that is not present in the country. That way, he can create an opportunity for his business.
There are plenty of other international entrepreneurship opportunities present in the global market but if you don’t try then you can never know.
Importance of International Entrepreneurship
For the satisfaction of foreign customers, they have to produce the products that meet the demands internationally. One important thing that every Entrepreneur has to consider is the quality of the products in global as well as domestic markets and fulfill all the requirements of the potential customers. Customer satisfaction is important to run the business smoothly.
Thus, International Entrepreneurship is of utmost importance for the people living across various areas of the nation. Let us have a look at some of the vital points due to which the international Entrepreneurship is considered on top.
- A Decline in domestic Market
If the sales of products are low in the domestic market, then the Entrepreneur has a very effective option to sell the same at the global market. Thus, they can sell their products in the international market as per the demand instead of wasting such products by keeping them in the warehouse.
- Maturity Stage
First off, an Entrepreneur should grow their business within the domestic nation, and then, the best time to move forward for international business is when it reaches the maturity stage. When the business is well-developed in own nation, then it is more significant to choose international Entrepreneurship.
- Reduce Manufacturing Costs
The majority of the companies have fixed costs at a high level that can also be helpful to lower the manufacturing cost of the products. When the products are selling in the global market, then a large number of units are required and hence, the manufacturing cost reduces.
- Enhance Reputation
As the products are selling in the international market, then it is obvious that there is a positive impact on the reputation of the business and it helps to establish a professional image of the business. Not only reputation but also they can compete with other firms that are engaged in the same arena.
- Meet the Quality Expectations
Entrepreneurs who want to fulfill all the expectations of their foreign customers have to provide a high quality of products to meet the expectations of their customers. An international Entrepreneur will not only in the global market but also produce premium quality products in the national market.
- Customer Relationship Management
Through the expansion of the business out of the borderlines, an international Entrepreneur learns how to inculcate the habit of customer relationship management. So, it improves the relationship between the business and its potential customers. Moreover, it develops respect and become sensitive towards all sort of customers and develop foreign habits.
- Hire Employees Globally
As the business is going to expand its arms across other nations, then it is obvious that there is a need to hire staff that is from that particular location. It is helpful to deal with the customers of that nation as the employees can easily understand the demand of people residing over there. So, international Entrepreneurship creates a large number of employment opportunities at various locations across the nationwide. Thus, they can look internationally and begin developing an outlook from a global perspective.
Also See: Qualities of an Good Entrepreneur
International Entrepreneurship Vs Domestic Entrepreneurship
A variety of factors affecting the decision-making power in both types of Entrepreneurship is quite dissimilar but they are only concerned with the profits, sales, and costs too. The decision in the case of International Entrepreneurship is flooded with a lot of complexities due to some factors that are not in control like economic, technology, political as well as cultural too.
Here are some of the distinctions between the international Entrepreneurship and Domestic Entrepreneurship that you ought to know. Let us have a quick look at the chart below.
|Basis of difference||International Entrepreneurship||Domestic Entrepreneurship|
|Economics||Dealing with the various levels of economic developments, valuation in currencies, government rules and regulations, venture capital, marketing, and distribution systems that took a lot of entrepreneurial efforts.||The focus of entrepreneurial efforts is related to only a single nation and thus, it is easy to control economics.|
|Cultural Environment||A lot of cultural issues are also there and it affects the business as well as strategies too. An Entrepreneur should need to cope up with the different cultural beliefs of local people.||An Entrepreneur is already aware of the cultural stuff and knows how to deal with it.|
|Technological advancements||It is surprising if there is no availability of updated technologies in the host nation as if the entrepreneur belongs to a developed nation.||An Entrepreneur is aware of the technologies available within borderline and uses the same to develop products.|
|Government Policies||An Entrepreneur who wants to do internationalization of the business need to aware of all domestic as well as international policies of the government.||They just need to consider the regulations and policies of the domestic nation.|
|Legal environment||To expand the business internationally, it is required to understand all ins and outs of legal communities at the global level.||No need to understand global legalities.|
Barriers to International Entrepreneurship
International Entrepreneurship is all about expansion and availability of all types of products all over the world. It takes a lot of effort to take any domestic business to the next level at international Entrepreneurship and it is quite thrilling seeking to face some barriers while taking the business to a great extent.
Here, we have jotted down some of the hurdles to international Entrepreneurship which is given below. Let us have a look at these below.
- Attitude of Entrepreneur
When there is negativity in the mind of the Entrepreneur that they do not have any knowledge about the global market and he has a misconception that they will not able to set up a business. This attitude emerges as the biggest hurdle.
- Lack of Information
As a newbie to the international market, the Entrepreneur has no info about the market conditions and unaware of the customer’s taste as well as the preference of products.
- Lack of Network Influences
If the Entrepreneur has some links with the business firms in the host nation, then it becomes easy to deal with the new conditions and get some info. In the case of no connections, it is somehow difficult to commence business and establishing it.
- Financial problems
As the Entrepreneur is going to expand their business in other nations, so there is a financial risk as the financial institutions are reluctant to provide any kind of assistance.
- Tariff barriers
Tariff refers to the duty that is levied on products while importing. The price of imported goods rises with the increase in tariffs and also, seems unattractive from a customer’s point of view.
- Non-Tariff Barriers
Apart from the tariff hurdles, some other obstacles are dealt with by businesses such as testing, bureaucracy, certification, and so on. These are some problems raise by the government to limit foreign goods.
- Technical Barriers
Before the goods enter into the global market, it has to clear the testing and authentication. For instance, food testing for bacteria, chemical tests in other harmful products, and so on.
- Political Barrier
There is a question mark in business success due to the high rise in some illegal activities in the host nation such as kidnapping, discrimination, employee violence, and others. These unstable political scenarios make it difficult for a business to grab abundant opportunities for growth.
- Human Resource
The existence of labor unions, strikes, lockdowns, and incline in labor coats make it tough for entrepreneurs to set up a successful business.
To encapsulate, the production of products and services is done at a large scale with the help of International Entrepreneurship. The advantages of large scale production are taken by the whole world. Further, this is not only in favor of global customers but also good for business firms to widen their business out of the borderlines.
Also See: Creativity in Entrepreneurship
In terms of profit maximization, availability of quality products, and generating employment opportunities all over the world, international Entrepreneurship is a weapon that works for all.
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