CHAPTER 9

GLOBAL PENG

Chapter 9 LEARNING OBJECTIVESAfter studying this chapter, you should be able

to:

1.Define entrepreneurship, entrepreneurs, and entrepreneurial firms

2. Identify the institutions and resources that affect entrepreneurship.

3. Identify three characteristics of a growing entrepreneurial firm.

4.Describe how international strategies for entering foreign markets are different from those for staying in domestic markets.

5.Articulate what you should do to encourage entrepreneurship on an international level.

LO1: ENTREPRENEURSHIPTerms to know

Entrepreneurship Entrepreneurs International

entrepreneurship

LO2: INSTITUTIONS THAT AFFECT ENTREPRENEURSHIP

Formal institutions either help or hinder the growth of new SMEs.

LO2: RESOURCES AND ENTREPRENEURSHIP

Entrepreneurial resources must be…

Valuable Rare Inimitable Organized

LO3: CHARACTERISTICS OF A GROWING ENTREPRENEURIAL FIRM

Growth

Innovation

Financing

LO4: INTERNATIONALIZING THE ENTREPRENEURIAL FIRM

MYTH: Only large MNEs do business abroad; SMEs operate domestically

Born global firms: start-ups that do internationalbusiness from inception

LO4: INTERNATIONAL STRATEGIES

DEBATE: SLOW vs. RAPID INTERNATIONALIZATION

SLOW: According to stage model, firms need to enter culturally and institutionally close markets first, accumulate overseas experience, then move to more sophisticated strategies, such as FDI.

RAPID: Every industry has become global, and entrepreneurial firms should go after opportunities rapidly. Firms that internationalize earlier do not face obstacles of domestic orientation.

LO5: ENCOURAGING ENTREPRENEURISHIP ON AN INTERNATIONAL LEVEL