International Entrepreneurship Vs Domestic Entrepreneurship

Prepared By: Mohd. Iqbal

International Entrepreneurship
MEANING
International entrepreneurship is the process of an entrepreneur conducting business activity across the national boundaries. It may consist of exporting, licensing, opening sales office in another country etc.

Importance of International Entrepreneurship

International entrepreneurship is beneficial as if sales of company is declining in domestic market, they can sell products in international market considering demand for product in other country market customers.
Entrepreneur can sell their products in foreign market which have reached the maturity stage of their life cycle in domestic markets and earn profit by their sales. Entrepreneur can improve their entrepreneurial competitiveness and enhance reputation.

Companies which are incurring high level of fixed costs can lower their manufacturing costs by spreading these fixed costs over long number of units by selling their products in global market.

Entrepreneur in process of satisfying foreign customers have to produce product as per their quality expectation by which entrepreneur will not only produce quality product in international market but also in national market

Entrepreneurs can hire motivated, multi lingual employees, learn constantly about the foreign markets. They will think globally and start developing an outlook from a global prospective.

Domestic Entrepreneurship
MEANING

Domestic entrepreneurship is the process of an entrepreneur conducting business activity within national boundaries or in home country.

DIFFERENCE BETWEEN INTERNATIONAL AND DOMESTIC ENTREPRENEURSHIP

Economic system: When an entrepreneur is operating in national level he is required to understand economic conditions within country, but at international level he should be having information about economic system of countries he running business which includes currency rate, phase of business cycle etc.

Stage of economic development :

When entrepreneur is operating at domestic level he should focus on development state of domestic country, on the contrary when he is operating on international scale he has to view country from developed, developing and underdeveloped perspective and accordingly plan in business strategies in economy.

Cultural environment :
Entrepreneur operating at national level should understand cultural issues persisting in home country and at international level he has to understand and manage cultural diversity of customers as well as employees in company.

Technological environment :
There is used limited technology in the domestic entrepreneurship. But there are technological variations persisting in various countries depending on time of implementation, updating of technology etc which has to be analysed by entrepreneur and accordingly plan in business operations.

Government policy :
Government affect the international Entrepreneurship as well as domestic entrepreneurship. There is less influence in domestic entrepreneurship. But the influence is more in international entrepreneurship. as restriction in home country for export of goods affect trade of entrepreneur and restriction in host country on entering of new entrepreneurs in their company.

Political and legal environment :

Politics and laws play a critical role in international business as well as domestic business. There is no multiplicity of political & legal environment in domestic country. But there is multiplicity of political & legal environment. Which create restriction and documentation.

Balance of Payment:
In domestic entrepreneurship, entrepreneur has to study the BOP conditions of one particular country.

While In International entrepreneurship the entrepreneur has to analysis BOP conditions of many different countries

Documentation:
There is less documentation in domestic entrepreneurship.

But there is more documentation in international entrepreneurship.as IEC number, sales tax registration, registration in EXIM bank etc.

Investment:
International entrepreneurship required more capital. because entrepreneur has to run business in many different countries. But in domestic entrepreneurship, there is less required capital.