© 2010 Cengage Learning. All rights reserved. CHAPTER 9 GLOBAL  PENG

© 2010 Cengage Learning. All rights reserved. Chapter 9 LEARNING OBJECTIVES After 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.

© 2010 Cengage Learning. All rights reserved. LO1: ENTREPRENEURSHIP Terms to know  Entrepreneurship  Entrepreneurs  International entrepreneurship

© 2010 Cengage Learning. All rights reserved. LO2: INSTITUTIONS THAT AFFECT ENTREPRENEURSHIP Formal institutions either help or hinder the growth of new SMEs.

© 2010 Cengage Learning. All rights reserved. LO2: RESOURCES AND ENTREPRENEURSHIP Entrepreneurial resources must be…  Valuable  Rare  Inimitable  Organized

© 2010 Cengage Learning. All rights reserved. LO3: CHARACTERISTICS OF A GROWING ENTREPRENEURIAL FIRM  Growth  Innovation  Financing

© 2010 Cengage Learning. All rights reserved. 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

© 2010 Cengage Learning. All rights reserved. LO4: INTERNATIONAL STRATEGIES

© 2010 Cengage Learning. All rights reserved. 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.

© 2010 Cengage Learning. All rights reserved. LO5: ENCOURAGING ENTREPRENEURISHIP ON AN INTERNATIONAL LEVEL