Introduction:

The world of entrepreneurs is as innovative as the discipline itself. That’s why many of the
traditional accreditations and backgrounds necessary for other jobs don’t always apply to young
entrepreneurs who are looking to make their mark in the business sect. This applies double for
international business, where technologically savvy countries are not always following the beaten
path in finding new employees and business ties. This can be largely attributed to the influx of
independent companies and entrepreneurial services that have sprung out of the field in the likes
of China and Japan.

Accreditations like MBA degrees are never wasteful, but with today’s technology providing easy
access to networking from websites such as LinkedIn, things have certainly changed. It’s become
less important for entrepreneurs to compile the necessary paperwork and more important for them
to actually launch their product and make a name for themselves directly with the market.

International entrepreneurship has many silver linings, particularly in cases in which a business is
functioning out of a country or province that is markedly cheaper than other countries. The cost of
living combined with the cost of operations is often a reason in itself to launch an independent
business abroad. There are dozens of stories filling the independent channels of communication
about these circumstances producing successful results.

However, independent operations for large scale businesses can be exceedingly difficult,
especially when exports and imports are involved. The cost of creating a channel, acknowledging
buyers and vendors, and then overseeing the operations is often a tall order for a small company.
Fortunately, technological automations have gone a long way in minimizing the manpower
needed for many activities.
 International entrepreneurship: International entrepreneurship is defined as development of
international new ventures or startups that from their inception engage in international business,
thus viewing their operation domain as international from the initial stages of international
operation.

Example of Global Entrepreneurship: Tech industry are strong example of successful global
entrepreneurship. Companies such as Microsoft, Apple, Google and yahoo all evolved from small
startups with limited funding into massive multinational corporations. The reason for the rapid
growth of these companies is that the demand for these technology- operating systems, search
engines, office software and smartphones is universal in developed nations.

Nature of International Entrepreneurship: International entrepreneurship is a process of

conducting business activities across national boundaries. It includes exporting, licensing, or
opening a sales office in another country. Main purpose is to satisfy the needs and wants of target
consumers.

IMPORTANCE OF INTERNATIONAL ENTREPRENEURSHIP TO FIRM:

- Increased sales and profit :

When the entrepreneurs are not able to earn profit or demand for their product in domestic
market they can sell their products in foreign market where life cycle of product is in
favorable condition. E.g. Apple earned more profits from international business than in
local market US in the year 1994. ( $ 390 million foreign market / $ 310 in Indian market)
.

- Lower manufacturing cost :

If manufacturing cost of product increase in home country, then company can opt host
country for production process where resources are cheaper. E.g. Mc Donald's.

- Advantage of cheap labor :

Quantity and quality of labor is one of the major challenge for every business, if the labor
is cheap in foreign countries then company can outsource required labor if organization is
into foreign operations. E.g. increasing cost of labor in china has forced companies to
search for other options for outsourcing company activity to other countries where cost of
labor is less.
 - Utilization of talent:
When entrepreneur are not able to get required talented work force in country, then
they can hire employee from host country which has talent.

- Expansion of domestic market:

International business causes domestic market to expand beyond national boundaries.

When the domestic market has been fully tapped then company can go for expansion of
business to market their products in international market. E.g. Sony .

- Globalization of customers :

When customers in country prefer purchasing foreign brand products then domestic
companies have to go for internationalization of business to keep in pace with competition
to attract customers. E.g. Tata Motors begin to operate in international market after entry
of foreign competitors in Indian market like ford.

- Globalization of competitors:

International business motivates companies to face competition on global level which in

turn leads to growth of market, pursuing global scale efficiencies etc.

- Expansion and diversification of business :

An entrepreneur whose core business strategy is expansion and diversification of business,

international business is one of the primary platforms to achieve these objectives.

- Attracts customers in domestic market :

International business improves image of the company in domestic market and attracts
more customers in domestic market due to internationalization of business. E.g. Ranbaxy.

Entrepreneurship and Entrepreneurial Opportunities

• Purpose of entrepreneurship:

• Create wealth

• Create Value

• Create Sustainable Competitive Advantage

• Proactive in creating opportunities rather than waiting to respond to opportunities created by

others.
SPECIFIC FEATURES AND FACES OF INTERNATIONAL ENTREPRENEURSHIP

Global Opportunities

 International Markets:

Need to study and learn cultural differences. US companies export 25% of our GDP Gross
Domestic Product (GDP) total value of all goods produced during the year.
 Asia

China:

 Government controls business, and laws and regulations are fairly strict.
 Fastest-growing economy in world.
 Looking for new products and services.

Japan:

 In the past a “closed” society- hard to sell exports

 US Fast-food menu reflects their culture.
  Today they desire our clothing and fashion accessories

 Advertise using humor, fantasy, harmony, collective material success and things
uniquely Japanese.

Latin America

 Diverse communities: traditional and modern.

 Speak Spanish, Portuguese, and French.
 Buying decision based on family needs not individual needs
 Look at merits of product, do comparison shopping before they buy.
 Mexico consumers prefer U.S. goods.
Europe:

 Business failures and risk taking not accepted, not as many entrepreneurs.
 No common European culture.
 Common currency made commerce easier .
 French more likely to east in restaurants than Italians.
 Italy culture is very individualistic, whereas France’s culture is more collectivist.

 Segment Markets/ Ads based on cultural differences rather than national

boundaries. Regions in Transition: Africa, Middle East, and former Soviet

Union.

 Unstable or developing countries offer a risky form of opportunity.

 Many barriers: lack infrastructure, shifting political power, and lack of support
once the business is in operation.
 Research the culture and business practices.
 Consider partnering with a local company.
 Be sure to know your rights
Entrepreneurship in the Global Marketplace

 Different from domestic business.

 Countries differ in their cultures, political systems, economic systems, legal

systems, and levels of economic development.

 Cultural differences make the management of an international business more

complicated than the management of a domestic business.

 Cross-border business transactions require an in-depth understanding of the rules of

international trade.

 An international business must have policies for dealing with movements in

exchange rates.

WAYS to ENTER the GLOBAL MARKET: Understanding International Business

Importance of Culture

Study customs…..there may be contrasting differences.

- American business owners often travel to Japan in a hurry to close a transaction.

- Japanese business people, like to take their time completing a deal, they want to get
to know the person before they complete transaction. Trust is very important; they are
willing to take the time to make sure that you are trustworthy.

Tips for Showing Respect

 Dress Conservatively
 Do not correct the other person’s use of English.
 Be prepared to remove your shoes.
 Respect different tastes in food.
 Know something about the country and its culture.
 Build a relations and trust before conducting business.
 If necessary bring an interpreter to translate.
ENTERING the GLOBAL MARKET

 Sources for locating the best market.

 Consult the U.S. Census Bureau’s Guide to Foreign Trade Statistics - sources for
various trade statistics .

 Standard Industrial Trade Classification (SITC) Codes – what types of products are
traded in specific countries. Also find information about how well your product or
service competes in different marketplaces.
 Suppose you are planning to export a toy.
5. Find out how many toys are sold in different countries every year. Look for a country that
imports more toys than the average. The country should have a history of importing goods from
U.S. Generally, in order for a country to be considered a good export candidate, about 5 of its
total imports should be American goods.

 Other Sources of Help

 Contact International Trade Administration office and the Department of

Commerce in Washington, DC.

 International Business Exchange (IBEX). It allows you to sell products and

services online anywhere in the world. It is a good source to find trading partners,
too.

 U.S. Government and private agencies offer small businesses the opportunity to go
on trade missions.

 Trade Missions allow owners to meet and talk with foreign agents, distributors, or
potential business partners.

 To participate you need a product that is on the government’s “Best Prospect” list.
It is a product that other countries are looking to purchase. Also need a good Business
Plan.
Findings:

 It more important Competitor Analysis to gain in the international Business.

 Maintain Self-Competitive Positioning to gain sustainable profitability.
 Make different Own Competitive company's international strategy to Other

 Get idea Global Economic condition. Prepare for impact of the different Economic
Condition.
 Knowledge about Trade Barriers for to overcome the impact.
 Focus on Government policy, which policy are most favorable for business.

 Political and legal environment is another important issue. Need to find out the
way to overcome this issue.
 Scanning and Evaluation International Opportunity Scanning and Evaluation.

Recommendation:

1. Need to learn about the business environment of the target global market to identify the
opportunity.
2. Need to study about the culture of the targeted market consumer.
3. Need to analyze the existing business strategy followed by other firms
4. Go to the int. market with unique products.
5. For reducing cost of making go in large scale production
6. Search for low cost labor country to go global
7. Search for the best market for int. business
8. Listen to the customer very carefully & provide service or product in the same way
9. Learn the local culture & language & hire local people for best communications.
10. Learn about the foreign policies of doing int, business
Conclusion:

Entrepreneur International business strategy provides corporations the opportunity to expand and
manage business operations in many locations across the world. Many organizations are weighing
the pros and cons of starting operations overseas. However, it is imperative that the decision
makers identify opportunities, explore resources, and assess core competencies before
implementing a plan to move forward. These three factors may provide a foundation for many
corporations as they implement an international strategy. According to Hoskisson, Hitt, and
Ireland (2003), each factor should be evaluated when determining whether or not to move
forward. Organizations have been challenged to duplicate their success in other countries. In order
to accomplish this task, the management team must devise a plan that will bring them the same
level of success that they experienced in their home country. After a company has decided on
what strategy would benefit the organization, it will move to the next step, which is the
development of an approach to manage its global business operations. One approach that has been
explored is the international trade theory. Once an organization has defined its international
strategy, the next step would be to develop a process for implementing the strategy.