The dream of every entrepreneur in the world today is to become successful in business. Once their domestic operations are fully developed, they will consider expanding internationally. It is beneficial to raise business values in the home market.
Another excellent reason to pursue international entrepreneurship is that it is preferable to expand beyond national borders if a company’s domestic sales are relatively modest. The optimal time to transition to international entrepreneurship and increase profits is when the home market reaches a high degree of maturity.
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 is 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 come from the techy world, who started their business from a small venture but then took it to an 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
Entrepreneurial opportunity means a situation where the cost of production is less than the selling price of the products or you can say where an entrepreneur can make a profit by selling his or her products. Although it’s all in the entrepreneur’s mind how he is going to make a profit, and things sorted for his business. International entrepreneurship provides many opportunities to entrepreneurs who are willing to expand their businesses 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 want to see the culture of other countries how they live their life and what things or products they use. Here a person from another country can take advantage by finding the opportunity of selling products of his culture.
- Food Taste Opportunity
Pizza originated in Italy; hamburger was made in the 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 the 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, and 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, the 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 opportunities.
- Filling a Need
International entrepreneurship opportunities can also exist in filling the need of local people from any country. People across the world have their own problems that big brands can never understand. You as an entrepreneur can realize the basic need and provide a solution to them.
- Buying a franchise
There are many franchises 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.
Why International Entrepreneurship is Important
For the satisfaction of foreign customers, they have to produce 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 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 its own nation, then it is more significant to choose international Entrepreneurship.
- Reduce Manufacturing Costs
The majority of companies have fixed costs at a high level which 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 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 nationwide. Thus, they can look internationally and begin developing an outlook from a global perspective.
Cons of International Entrepreneurship
International Entrepreneurship is all about the 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 be 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 is 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 establish 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 raised by the government to limit foreign goods.
- Technical Barriers
Before the goods enter 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.
What Are International Entrepreneurship Features?
International Entrepreneurship is an approach that considers the internationalization of firms has a strong influence on the entrepreneur and the networks the entrepreneur has established with foreign actors. International Entrepreneurship means the discovery, enactment, evaluation, and exploitation of opportunities across national borders to create future goods and services.
International entrepreneurship is the process of an entrepreneur conducting business activity across national boundaries which may consist of exporting, licensing, opening a sales office in another country, etc. In recent years entrepreneurship has become a global dream for lots of people all over the world, but only very few understand the importance of entrepreneurship and dare to turn their dreams into reality.
Following are the important points that clearly explain the importance of International Entrepreneurship in today’s world.
Expansion of domestic market:
International Entrepreneurship helps in the expansion of the domestic market beyond national boundaries. When any organization or business has covered the domestic market then the company can go in expansion for business to the international market.
Increased Sales and profit:
International Entrepreneurship helps to contribute in the hike of sales and to earn profit. When the entrepreneurs are not been able to earn profit or demand for their product decreases in the local market then they can sell their product in a foreign market where the life cycle of the product is in favorable condition. For e.g. In 1994, Apple earned more profits from the international market than from the local market.
Low manufacturing Cost:
International Entrepreneurship can help to decrease manufacturing costs. For some of the products, it is costly to manufacture the product in the home country which leads to an increase in the cost of the products and somehow affects the sales. With international entrepreneurship, we can decrease manufacturing costs by producing products of the same quality with low manufacturing costs in another country which ultimately yields high profits to the entrepreneurs at the end.
For e.g. Apple manufactures their products in China because of low manufacturing costs in China.
Globalization of competitors:
International Entrepreneurship helps in the globalization of competitors and customers. International business increases opportunity not only for survival and growth but also motivates the companies to face the competition from global entrants in markets which in turn leads to growth of the market pursuing global scale efficiencies, etc.