the global entrepreneur
TRANSCRIPT
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THE GLOBAL
ENTREPRENEUR
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INTRODUCTION
For a century and more, companies have ventured abroad only after
establishing themselves at home.
A new breed of entrepreneur is thinking across borders.
Companies are being born global today. From buying raw materials from
nearby suppliers to manage operations from a business, companies hunt
for best locations because of political and social barriers.
Standing conventional theory on this head, start-ups now do business in
many countries before dominating their home market.
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KEY CHALLENGES START-UPS
FACE
DISTANCE
CONTEXT
RESOURCES
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DISTANCE
New ventures usually lack the infrastructure to cope
up with dispersed operations and faraway markets.
More physical distance create time difference. Which
can be remarkably tough to navigate.
Psychic distance- A greater challenge for global
entrepreneurs is bridging due to factors such as culture,
language, education systems, political systems, religion
etc.
It can heighten or reduce psychological barriers
between two regions and also prompt entrepreneurs to
make counterintuitive choices.
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CONTEXT
Nations political, regulatory, judicial, tax,
environmental and labor systems vary. The choices
entrepreneurs make about like where to locate their
companies head quarters will affect shareholderreturns and also their ability to raise capital.
Questions are raised whether to set up a company
where the taxes are low but the problematic legal
history or vice-versa.
Regardless of the complexity some global
entrepreneurs also deal with several countries
simultaneously.
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RESOURCES
Customers expect start-ups to possess the skills and
deliver the levels of quality that larger companies do.
Thats a tall order for resource-stretched new venture.
Still they have no option to do whatever it takes toretain the customer.
Many entrepreneurs have taken advantage of ethnic
networks to formulate and execute a global strategy.
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ALLIANCE BUILDING-
Start-ups can quickly reach by striking partnershipswith large companies headquartered in differentcountries.
However, most entrepreneurs have to enter into suchdeals from positions of weakness.
An established company has favourable conditions
interms of money, time and communications with globalpartners.
A start-up has few of these resources as their allianceshave to span geographic and psychic distance.
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HOW DIASPORA NETWORKS
HELP START-UPS GO GLOBAL
Many entrepreneurs have taken advantage of ethnic
networks to formulate and execute a global strategy.
Through diaspora networks, global entrepreneurs can
quickly gain access to information, funding, talent,
technology and contacts.
The most successful diaspora networks take following
four steps-
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1. MAP NETWORKS-
The members of a diaspora often cluster in residential
areas, public organizations, or industries.
2. IDENTIFY ORGANIZATIONS THAT CAN HELP-
Many countries have offices overseas that facilitate
trade and investment and they open their doors to
people visiting from home.
These organizations can provide the names of
influential individuals, companies, and informal groups
or clubs.
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3. TAP INFORMAL GROUPS-
Informal organizations of ethnic entrepreneurs and
executives are usually located in communities where
immigrant professionals are concentrated.
4. IDENTIFY THE INFLUENTIALS-
It can be tough to identify people who have standing
with local businesses and also within the diaspora
network.
A board member or coach that both respect is an
invaluable resource for a would-be entrepreneur.
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SUPPLY CHAIN CREATION
Entrepreneurs must choose suppliers on the other sideof the world and monitor them without havingmanagers nearby.
Supply chain find it daunting to manage complexsupply networks, but they gain competitive advantageby doing so.
In addition to raw materials and components, start-upsare increasingly buying intellectual property fromacross the world.
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CONCLUSION
Entrepreneurs shouldnt fear the fact that the world isnt flat. Being global
may not be pursuit for the fainthearted, but even start-ups can thrive by
using distance to gain competitive advantage.
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THANK YOU
SUBMITTED BY-
RAJAT NAGPALRoll number- 844