1. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Business 2e C ha p t e r 9 Growing and Internationalizing the Entrepreneurial Firm

2. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 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.Participate in two leading debates on growing and internationalizing the entrepreneurial firm. 6.Articulate what you should do to encourage entrepreneurship on an international level. 7.Draw implications for action.

3. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ENTREPRENEURSHIP Entrepreneurship Identification and exploitation of previously unexplored opportunities

4. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ENTREPRENEURIAL FIRMS Entrepreneurs Founders and/or owners of new business or managers of existing firms who identify and exploit new opportunities International entrepreneurship A combination of innovative, proactive, and risk-seeking behavior that crosses national borders and is intended to create wealth in organizations

5. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. SMALL- AND MEDIUM-SIZED ENTERPRISES (SMEs) Small-and medium-sized enterprises (SMEs) Firms with fewer than 500 employees

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8. GETTING ELECTRICITY

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10. GROWING THE ENTREPRENEURIAL FIRM A growing entrepreneurial firm exhibits three characteristics: Growth Innovation Financing Microfinance A practice to provide micro loans ($50–$300) used to start small businesses with the intention of ultimately lifting the entrepreneurs out of poverty.

11. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13. INTERNATIONALIZING THE ENTREPRENEURIAL FIRM Born global Start-up companies that attempt to do business abroad from inception

14. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. INTERNATIONAL STRATEGIES FOR ENTERING FOREIGN MARKETS Direct exports Sale of products made by firms in their home country to customers in other countries Licensing An agreement to give another firm rights to use proprietary technology (such as a patent) or trademark (such as a corporate logo) for a royalty fee Franchising An agreement to give another firm the rights to proprietary assets for a royalty

15. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. INTERNATIONAL STRATEGIES FOR ENTERING FOREIGN MARKETS Stage model Model of internationalization that portrays the slow step-by-step (stage-by-stage) process an SME must go through

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17. INTERNATIONAL STRATEGIES FOR STAYING IN DOMESTIC MARKETS Indirect exports SMEs to reach overseas customers by exporting through domestic-based export Intermediaries Export intermediary Firm that performs an important middleman” function by linking domestic sellers and foreign buyers that otherwise would not have been connected

18. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.