INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES (continued…):ENTREPRENEURIAL PARTNERING

<< INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES (continued…):BARRIERS TO INTERNATIONAL TRADE

INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES (continued…):SOURCES OF NEW IDEAS >>

Entrepreneurship MGT602

Lesson 14

INTERNATIONAL ENTREPRENEURIAL OPPORTUNITIES (continued...)

LEARNING OBJECTIVES

To explain the aspects of the entrepreneurial process.

To explain the differences between entrepreneurial and managerial domains.

To explain the organizational environment conducive for entrepreneurship.

To identify the general characteristics of an Entrepreneur.

To explain the process of establishing entrepreneurship in an organization.

ENTREPRENEURIAL PARTNERING

One of the best methods to enter an international market is to partner with an entrepreneur in that country.

These foreign entrepreneurs know the country and culture and therefore facilitate business transactions

while keeping the entrepreneur current on business, economic and political conditions. This partnering is

facilitated by understanding the nature of entrepreneurship in the country. Three areas of particular interest

to U.S. entrepreneurs are Europe, the Far East and transition economies.

Europe

Europe has only recently become interested in entrepreneurship.

Risk taking has been discouraged and business failure considered a social disgrace.

Several changes in the social and political climate have changed this traditional, security-

conscious culture.

Exemplifying this new thinking are academics, especially scientists and engineers.

Today more individuals are emerging in both academic circles and large companies who

are look for a challenge.

New government policies are making it easier to raise money for starting up businesses.

The U.K. created the Business Expansion Scheme in 1983 to provide capital to new

business ventures.

In France several economic and social factors cause difficulties.

Venture capital is managed by bankers, who are risk averse.

Another hurdle is the French contempt for both failure and success.

Research in Ireland and Sweden has explored the nature of European entrepreneurship.

The Far East

Entrepreneurial success in some Asian countries has been significant because of the

culture and the political and economic systems.

The Malaysian government has established the Malaysian Industrial Development

authority to promote efforts to eradicate poverty, but has not accomplished much.

In Singapore, entrepreneurial success is greatly esteemed.

Japan's social structure discourages entrepreneurship.

Hong Kong is a major entrepreneurial center.

Entrepreneurship MGT602

Controlled and Transition Economies

China's planned economy has not openly encouraged entrepreneurship, but a deal of

entrepreneurial activity is taking place.

In Poland, the transitional upheaval and lack of reform has led to a thriving black

market.

The Overseas Private Investment Corporation of the U.S. government has supported

economic reforms in these countries, through services such as:

Selling political risk insurance.

Offering direct loans.

Providing loan guarantees.

Organizing overseas missions.

Providing investor information services.

Due in part to OPIC, reforms in Hungary have supported decentralization, private

initiative, and market-orientation of the economy

SOURCES OF NEW IDEAS

A sound idea for a new product or service, properly evaluated, is essential to successfully launch a new

venture. Some of the more frequently used ideas for new entrepreneur include consumers, existing

companies, distribution channels, the federal government and research and development.

Consumers

Potential entrepreneurs should pay close attention to the final focal point of a new product-the customer.

This can be an informal or formal survey of consumers expressing their opinions. Care should be taken to

ensure that the idea represents a large enough market.

Existing Companies

Entrepreneurs should establish a formal method for monitoring and evaluating the products and services in

the market. This may uncover ways to improve on present products, resulting in new product ideas.

Distribution Channels

Because they are familiar with the needs of the market, channel members often have suggestions for new

products. These channel members can also help in marketing the new product.

Federal Government

The files of the Patent Office contain numerous new product possibilities. The patents can suggest other

new product ideas. Several government agencies and publications are helpful in monitoring patent

applications. New product ideas can also come in response to government regulations.

Research and Development

The largest source for new ideas is the entrepreneur's own research and development. This can be a formal

endeavor connected with one's current employment

Table of Contents: