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Introduction Of International Entrepreneurship Assignment
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The word entrepreneur is derived from the French word ‘entreprendre’ which means adventurer or ‘undertaker.’ An entrepreneur is an individual; who recognizes the problems in a system and create an ideal solution and effective strategic plan to make a change that can benefit the world. International entrepreneurship defines developing a venture and extends the operation globally (Aldrich, 2017). All the revolution around the globe that transformed the usual way of the world is brought up by the famous entrepreneurs of the world. From technology to business everywhere entrepreneurs are the driver of innovation (Landström, 2020). It is the entrepreneurs who are substantializing people’s dreams by their vision and risk-taking nature. If we look at the 21st-century world, from Amazon, Google, Alibaba, Facebook to all other traditional way has been changed only by the global entrepreneurs (TORKKELI, 2021). International entrepreneurs help to bring out a change and the change benefit the world. Along with this, these entrepreneurs contribute a huge share in the economy of a country that helps a country to grow economically and benefit a country to attain more prosperity.
The research will mainly focus on the various aspect of global entrepreneurship and discuss in detail numerous related contexts of international entrepreneurship. The first will throw a light upon an evaluation of various traits of global entrepreneurs which assist them to take the challenges and motivate them to establish their vision in the world. The next section will be describing the issues and challenges that arise during the expansion of international ventures by these entrepreneurs. The following paragraph will note deliberately the impact of global business on the economic development of a country and the research will conclude the discussion using a relevant theory of international entrepreneurship on the global economic advancement.
1. Traits of International Entrepreneurs
In the present world,the word entrepreneur is the most popular and regarded one. It is impossible to find someone who does not know the name of Bill Gates or Mark Zuckerberg and that clearly throws light upon the farfetched reach of the innovation made by the renowned global entrepreneurs. Global entrepreneurs are the people who look for opportunities, accumulate necessary resources and take an action plan to initiate an innovative business beyond the borders (Aldrich, 2017).Globalization has provided a full box of opportunities to the entrepreneurs who are willing to expand their venture globally because it has improved international communication, made more flexible governments’ laws and regulations and other business-related issues. Nowadays most of the renowned companies of the world have their footprint around the world. There are certain characteristics that made the global entrepreneurs take successful approaches, such as:
- Absolutely clear purpose: Global entrepreneurs focus on the challenges and strive to find a solution based on the circumstantial challenges (Kerr, Kerr and Xu, 2017). Their vision plays a crucial part as it assists them to make an appropriate plan for conducting a successful venture. The vision mainly defines what kind of change they want to bring in this world and it also facilitates to enhance trust among them.
- Belief in their vision: Among all the successful global entrepreneurs, the most powerful and common trait belief has always been encountered. History has always been evident that whenever someone wanted to bring change, ordinary people have always laughed pointing it to the imagination. But the entrepreneurs' vision has always supported them to believe in their action and destination that has taken humankind ahead of time (Pekkala Kerr, Kerr and Xu, 2017).
- Learning attitude: In a business, entrepreneurs have to face a variety of difficulties and for facing these situations; entrepreneurs have always opted for learning and growing with time (Pekkala Kerr, Kerr and Xu, 2017). Learning helps an entrepreneur to grow and growing is very crucial for them as the world is moulding every day with new ideas, new innovations.
- Risk-taking nature: This significant trait has kept the global entrepreneurs apart from the ordinary people of the globe. All the distinguished global entrepreneurs, like, Jack Ma, Ritesh Agarwal, Elon mask have always suggested the mankind take the risk to make something big (Kerr, Kerr and Dalton, 2019). It is their risk-taking nature and belief in their vision that helped the global entrepreneurs to make this world like a dream.
2. Key Challenges faced by the international entrepreneurs
2.1 Physical Distance: As per the view of Alrawadieh, Karayilan and Cetin (2019), due to lack of necessary resources, new ventures often face difficulty in conducting the operation in faraway markets. Time difference among the various countries makes it tough for businesses to navigate. Apart from it, global entrepreneurs also feel tough to deal with a different workweek of different countries that leaves a bad impact upon the staff activity. In countries like India, China, Europe, organizations work from Monday to Friday. In UAE and Saudi Arabia and UAE, people work from Saturday to Wednesday etc. The major challenge faced by global entrepreneurs is filling the “psychic distance.” These distances include the language barrier, economic development, politics and education level etc.
2.2 Context: The location of the company's headquarters impacts the shareholder return and also leaves an impact upon the capital raising. Panda (2018) stated,apart from this, different countries have their own different national policy, rules and regulation, environmental law, tax systems that also affect a business. Apart from this, global entrepreneurs often face difficulty in dealing with different countries.
2.3 Resources:Wright, (2019) mentioned, when a venture penetrates into a new global market, the organization has to keep in mind various information relating to the competitors to create an impactful strategy for a business. Customer acquisition is only possible for a business when the organization is offering a valuable product at less price. Global entrepreneurs have to always maintain their product quality along with the pricing of the product or service to gain a strong customer base.
2.4 Build alliance: For extending business in countries around the world, global entrepreneurs can take partnership strategy with established companies of the other countries.Alrawadieh and Alrawadieh (2018) highlighted, mostly, on the verge of penetration, new bee companies tend to be weak in comparison to the large companies. In that scenario, entrepreneurs can establish a negotiating deal with a large company.
2.5 Create an efficient supply chain: Most of the venture while launching company overseas tends to rely more on the suppliers from the other side of the world. In that case, the travelling cost rises and due to this, the cost of the price gets a hike. In that case, this companies company often fails to acquire a competitive advantage in other countries. Sengupta, Sahay and Croce (2018) stated, to cope up with these global entrepreneurs must build an effective supply chain and this can offer them a significant business opportunity.
3. Importance of International Entrepreneurship on economic development
3.1 Accelerate economic growth:Doran, McCarthy and O’Connor (2018) stated, global entrepreneurs play a significant role in boosting the economic growth of a country. New ventures create valuable service and product that attracts consumers to pay for the products. When customers will go for the product, the business will grow with time and that will definitely accelerate the economic development. Entrepreneurs create a large amount of employment opportunity in a country and public policies encourage and provide support to the entrepreneurs that are also a considerable factor for economic growth (Abu-Aisheh, 2018).
3.2Boost National income: New ventures are considered valuable as the businesses help to modify the existing system and solve the problem of a large number of consumers. As per the statement ofStoica, Roman and Rusu, (2020), increased earning and a large number of employments definitely contribute to the national income through tax revenue and government spending.
3.3Initiate social change:Global entrepreneurs create significant social change by offering an innovative way to change the obsolete system (Bayo and Emmanuel, 2020). This crucial change results in improving the quality of life and gives better economic liberty. For example, Computers and laptops have revolutionised the usual way of doing the activity and took the world forward (Doran, McCarthy and O’Connor, 2018). With the help of computers, people can easily accomplish their work with great efficiency and can accomplish the work in a limited time. Moreover, these changes improve the lifestyle of a country, provide better economic choices, and develop morality among the residents of the country.
3.5Promote industrial development:Shoimardonkulovich (2021) stated, whenever a new venture enters a market, there are multiple businesses and industries that develop along with the prime business. Abu-Aisheh (2018) opined, for running a successful business, multiple items are needed. So, in this regard necessary raw materials and other associating items get sales to boost and resultantly, the venture promotes industrial development and the economy of a country develops rapidly.
3.6 Develops Enterprises:Bayo and Emmanuel (2020) noted, not only have the entrepreneurs developed a unique product or service, but they also come up with innovative ideas to modify an existing business. Ranjan (2019) highlighted, with their ‘think out of the box’ perspective, they help other enterprises to expand and transform with their innovative ideas. Such as, technological implementation in a business operation can assist existing obsolete ventures to use their resources in an efficient manner.
4. Theoretical perspective on international entrepreneurship
4.1 Behavioural theory: The entrepreneur has been defined as an innovator instead of a manager or financial manager. Most of the scholars define that entrepreneur are not much significant in economic development in their early stage of business (Blanco-Mesa et al., 2019). The researchers have found out that the entrepreneurs possess a significant role in their later stage business when the business started to flourish because businesses mainly focus on getting a competitive advantage at that stage (Fayolleet al., 2018). In this stage, entrepreneurs take part in economic growth that is driven by a huge productivity boost. At the early stage, businesses are mainly run by accumulation rather than entrepreneurship.
As per other definitions, entrepreneurs are those people who have spotted opportunities in developing countries. The Behavioural definition also elongates by focusing, mainly on the risk-taking nature and stress management skills. As per the definition, Entrepreneurs are the people who primarily manage the operation related to production, gives wage to the employees and take responsibilities relating to uncertainty and risk in production (Fellnhofer, 2017).
4.2 Occupational Definition: As per the theory of Economy, Entrepreneurship has been defined as the choice between self-service and wage employment (Sorgner and Fritsch, 2018). In this case, it has been showing that entrepreneurship is similar to self-employment and self-employment is driven by necessity, not by choice.
4.3 SynthesisDefinition:Perényi and Losoncz (2018) opined, the synthesis definition mainly combines occupational and behavioural views in relation to entrepreneurship. They define entrepreneurship as “the resource, process and state of being through and in which individuals utilize positive opportunities in the market by creating and growing new business firms”. Entrepreneurship has an economical value relating to economics.
As per Gries and Naude, the definition of entrepreneurship is not limited rather it has a broader sense. As per this definition, when a product is sold at a profit this is called opportunity. But this view often seems to be contradictory as Opportunity is crucially defined as a situation when an individual can build a company by which they can live their desire life (Koliesniket al., 2020).
In the given research, the researcher has focused on the impact of global entrepreneurship on boosting the economic development of a country. In this regard, the research has thoroughly described relating factors of global entrepreneurship and economic growth. The beginning of the research has highlighted mainly the definition and characteristics of entrepreneurs to understand the core concept of the word global entrepreneur. The following section has noted deeply the numerous challenges faced during the expansion of business in the global market and discussed meticulously the importance of global entrepreneurship in the growth of economic development. The concluding part has stated various definitions of global entrepreneurship stated by various scholars. From the above research, multiple dimensions of global entrepreneurship have been found. The research is crucial as it dictates every aspect relating to starting a global business and identifying the actual meaning of global entrepreneurship.
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