Chapter Nine Powerpoint Presentation
1. Chapter 9 Learning Objectives After studying this chapter, you should be able to: Define entrepreneurship, entrepreneurs, and entrepreneurial firmsUnderstand how institutions andsources affect entrepreneurship Identify the three characteristics of a growing entrepreneurial firm Differentiate international strategies that enter foreign markets and that stay in domestic markets Participate in three leading debates on growing and internationalizing the entrepreneurial firm Draw implications for action 2. ENTREPRENEURSHIP AND ENTREPRENEURIAL FIRMS small and medium-sized enterprises(SMEs)- generally defined in the US as firms with fewer than 500 employees entrepreneurshipidentification and exploitation of previously unexplored opportunities entrepreneurs - founders and owners of new businesses or managers of existing firms international entrepreneurship-combination of innovative, proactive, and risk seeking behavior that crosses national borders and is intended to create wealth in organizations 3. GROWING THE ENTREPRENEURIAL FIRM growth-an entrepreneurial firm can be viewed as an attempt to more fully utilize currently underutilized resources and capabilities innovation-heart of entrepreneurship and allows for a more sustainable basis for competitive advantage financing-start-ups need to raise capital; 4F sources of entrepreneurial financing: founders, family, and friends, andfools microfinance - lending institutions provide tiny loans($50$300) to entrepreneurs in developing countriesthat would lift them out of poverty 4. INTERNATIONALIZING THE ENTREPRENEURIAL FIRM There is a myth based on historicalstereotypes that only large MNEs dobusiness abroad and that SMEs mostlyoperate domestically Transaction costs may seem so high thatmany firms may choose not to pursueinternational opportunities Someborn globalstart-ups attempt todo business abroad from inception Many venture investors look for a globalview in candidate organizations 5. 6. International Strategies for Staying in Domestic Markets indirect exports -SMEs reach overseas customers by exporting through domestic-based export intermediaries export intermediaries-perform an important middleman function by linking sellers and buyers overseas that otherwise would not have been connected: export trading companies (ETCs), export management companies (EMCs) 7.