Importance of International Entrepreneurship
Fundamentals of Entrepreneurship
BBA | BBA-BI | BBA-TT | BBM | BBS
International Entrepreneurship is an approach that considers the internationalization of firms has a strong influence of the entrepreneur and the networks the entrepreneur has established with foreign actors.(Global Dictionary) 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 the national boundaries which may consist of exporting,licensing,opening 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 explains the importance of International Entrepreneurship in today’s world.
1)Expansion of domestic market: International Entrepreneurship helps in expansion of domestic market beyond national boundaries.When any organization or business has covered domestic market then the company can go in expansion for business to the international market.
2) 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 local market then they can sell their product in foreign market where life cycle of the product is in favorable condition.
For e.g. In 1994, Apple earning more profits from international market than from the local market.
3) Low manufacturing Cost: International Entrepreneurship can help to decrease manufacturing cost.For some of the products it is costly to manufacture the product in the home country which leads to the increase in the cost of he products and somehow affects the sales.With international entrepreneurship we can decrease manufacturing cost by producing the product of same quality with low manufacturing cost in another country which ultimately yields high profit to the entrepreneurs at the end.
For e.g. Apple manufactures their products in China because of low manufacturing cost in China.
4)Globalization of competitors: International Entrepreneurship helps in globalization of competitors and customers.International business increases opportunity not only for the survival and growth but also motivates the companies to face the competition from global entrants in markets which in turn leads to growth of market pursuing global scale efficiencies,etc.
5) Improves image of the company : International Entrepreneurship improves image of the company in domestic market which helps to attract loyal customers and also helps in retaining them in long run.