Global Entrepreneurship Culture & Economies ESSAM 2011 Professor Stephen Lawrence Leeds School of Business University of Colorado at Boulder

Agenda Types of global entrepreneurship Characteristics of global entrepreneurs Characteristics of global entrepreneurship Differences & similarities between global and domestic startup ventures

Bosma & Levie Global Entrepreneurship Monitor 2010, Global Entrepreneurship Research Consortium.

Types of Global Entrepreneurship Bosma & Levie Global Entrepreneurship Monitor 2010, Global Entrepreneurship Research Consortium.

Types of Global Entrepreneurship Factor-Driven Economies? Low levels of economic development Oversupply of labor drives self-employment Efficiency-Driven Economies? Industrialization and scale economies Drives development of small-medium manufacturing firms Innovation-Driven Economies? Research and knowledge-intensity Drives knowledge and innovation-based entrepreneurship Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

Early-Stage Entrepreneurial Activity Bosma & Levie Global Entrepreneurship Monitor 2010, Global Entrepreneurship Research Consortium.

How Does Income Impact Eship? Bosma & Levie Global Entrepreneurship Monitor 2010, Global Entrepreneurship Research Consortium.

Necessity-Based Entrepreneurship Bosma & Levie Global Entrepreneurship Monitor 2010, Global Entrepreneurship Research Consortium.

How Old are Entrepreneurs? Bosma & Levie Global Entrepreneurship Monitor 2010, Global Entrepreneurship Research Consortium.

Which Gender are Entrepreneurs? Bosma & Levie Global Entrepreneurship Monitor 2010, Global Entrepreneurship Research Consortium.

Innovation & Entrepreneurship Bosma & Levie Global Entrepreneurship Monitor 2010, Global Entrepreneurship Research Consortium.

What Other Factors Effect Eship? Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

Why Become an Entrepreneur? Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

CHARACTERISTICS OF GLOBAL ENTREPRENEURSHIP Karra & Phillips (2004), “Entrepreneurship goes global,” Ivey Business Journal, Nov/Dec.

What does “Born Global” Mean? 25% International sales within 3 years Derive competitive advantage from global resources and global markets Plan for global sales and operations from inception Karra & Phillips (2004), “Entrepreneurship goes global,” Ivey Business Journal, Nov/Dec.

International Orientation Bosma & Levie Global Entrepreneurship Monitor 2010, Global Entrepreneurship Research Consortium.

What Factors Drive Global Eship Growth? Globalizing markets Tariff & trade barriers; global brands Growing middle class Changes in technology Information & transport technology Changing nature of firms & alliances Trade alliances (e.g., EU, NAFTA) Need for scale economies Karra & Phillips (2004), “Entrepreneurship goes global,” Ivey Business Journal, Nov/Dec.

Success Factors for Global Eship? Global vision No boundary between domestic & global markets Promiscuous collaboration Manage complex collaborative networks Cross-cultural competence Multiple languages Multiple cultural competencies Karra & Phillips (2004), “Entrepreneurship goes global,” Ivey Business Journal, Nov/Dec.

HOW DIFFICULT IS STARTUP AROUND THE WORLD?

Doing Business, World Bank

Global “Ease of Business” Rankings

The Best and the Worst “Global Heroes,” Economist, 2009

Days to Start a Business “Global Heroes,” Economist, 2009

Regulation vs. Entrepreneurship “Global Heroes,” Economist, 2009

VC Investments (% GDP-2007) “Global Heroes,” Economist, 2009

DO CULTURAL DIFFERENCES AFFECT ENTREPRENEURSHIP?

Hofstede Cultural Dimensions Power Distance (PDI) Acceptance of unequal power distribution Individualism (IDV) Extent of identification with a group Masculinity (MAS) Degree of differentiation in gender roles Uncertainty Avoidance Index (UAI) Measures cultural concerns about the unknown Long Term Orientation (LTO) Cultural focus on the future; “time-horizon”

Hofstede Score Comparison

BRIC Hofstede Scores

Uncertainty Avoidance

Hofsteder IDE vs. PDI Metrics

INTERNATIONAL VS. DOMESTIC NEW VENTURES – ARE THERE DIFFERENCES?

Int’l vs. Domestic New Ventures McDougall, Oviatt, & Schrader (2003) “A comparison of international and domestic new ventures,” Journal of International New Ventures 1, International team variables 2.Global strategy variables 3.Global industry variables McDougall, Oviatt, & Schrader (2003), “A comparison of international and domestic new ventures,” Journal of International New Ventures 1,

Entrepreneurial Team Variables Important differentiator International experience Somewhat important differentiator Industry experience Somewhat negative differentiator Marketing experience Important negative differentiator Technical experience McDougall, Oviatt, & Schrader (2003), “A comparison of international and domestic new ventures,” Journal of International New Ventures 1,

Global Strategy Variables Important differentiator Emphasis on quality Somewhat important differentiators Aggressiveness, product innovation, service, marketing, distribution Irrelevant differentiators Low cost, focus McDougall, Oviatt, & Schrader (2003), “A comparison of international and domestic new ventures,” Journal of International New Ventures 1,

Industry Variables Very important differentiator Global integration Somewhat negative differentiator Competitive intensity Irrelevant differentiator Technology change McDougall, Oviatt, & Schrader (2003), “A comparison of international and domestic new ventures,” Journal of International New Ventures 1,

OTHER RESOURCES

Global Eship Monitor (GEM)

International Entrepreneurship