INTERNATIONAL

ENTREPRENEURIAL
OPPORTUNITIES
CONTENTS:
• What is International Entrepreneurship?
• Nature of IE.
• Importance of International Entrepreneurship.
• International vs Domestic Entrepreneurship.
• Four strategic issues.
• Opportunities.
• Entrepreneurial Entry into International Business .
 INTERNATIONAL
ENTREPRENEURSHIP

• 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.
 INTERNATIONAL
ENTREPRENEURSHIP
• International entrepreneurship is defined as
development of international new ventures or
start ups 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

• Lower manufacturing cost
• Advantage of cheap labour
• Utilization of talent
• Expansion of domestic market
• Globalization of customers
• Globalization of competitors
• Attracts customers in domestic market
INTERNATIONAL VS DOMESTIC
ENTREPRENEURSHIP

• International entrepreneurial decisions are more

complex due to uncontrollable factors such as the
following;
• Economics
• Political-Legal Environment
• Cultural Environment
• Technological Environment
 FOUR STRATEGIC ISSUES TO CONSIDER;

• 1. The allocation of responsibility between the U.S (host country) and the
foreign operations.
• 2. The nature of the planning, reporting, and control system should be
used through out international operations.
• 3. The appropriate organizational structure for conducting international
operations.
• 4. The degree of standardization possible.
 WHAT IS BUSINESS
OPPORTUNITY
• A business opportunity, in the simplest terms, is a packaged
business investment that allows the buyer to begin a
business.
• however, the business opportunity seller typically exercises
no control over the buyer's business operations. In fact, in
most business opportunity programs, there's no continuing
relationship between the seller and the buyer after the sale
is made.
 TYPES OF BUSINESS OPPORTUNITIES

• These are the most common types of business

opportunity ventures:
• Distributorships.
• Rack Jobbing
• Vending Machine Routes.
 OPPORTUNITIES FOR
INTERNATIONAL
ENTREPRENEURSHIP

• ‘An entrepreneurial
opportunity, consists of a set
of ideas, beliefs and actions
that enable the creation of
future goods and services in
the absence of current
markets for them.’
 OPPORTUNITIES :

• ‘New ideals or inventions that may or may not lead to the achievement
of one or more economic ends.’
• ‘Beliefs about things favorable to the achievement of possible valuable
ends.’
• “Entrepreneurs may be more likely than other persons to discover
opportunities because they are less susceptible to inaction inertia.”
 CONTINUED…

• Actions that generate and implement those ends through specific (imagined) new
economic artifacts.
1. Value proposition
2. Market segment
3. Value chain structure: logistics/production
4. Revenue model
5. Competitive strategy: High expertise
6. Growth strategies: Decrease cost through expertise gain
CONTINUED…

Direction of entrepreneurial process:

Existence of Discovery of Exploitation of

opportunities opportunities opportunities
 ENTREPRENEURIAL ENTRY INTO
INTERNATIONAL BUSINESS

• The modes of entering an international business in divided

into three categories;
• 1.Exporting. (Direct, Indirect)
• 2.Non-equity arrangements.(Licensing, Turn-Key Projects,
Management Contracts)
• 3.Direct foreign investment. (Minority interests, Majority
Interest, Joint Venture)
BARRIERS TO INTERNATIONAL TRADE