Question

What is an entrepreneur? What is an entrepreneurial firm? Next, what are some key considerations in taking the entrepreneurial firm abroad? More generally, what are things that an organization must evaluate before doing business abroad? What are some potential modes of entry?

Answer 1

An entrepreneur is a person who organizes a venture and act as an employee. Entrepreneurs have a key role in any economy. The people who have the creative skills and initiative necessary to anticipate current and future needs and bring good new ideas to the market.

Entrepreneurial firms are companies that bring new products and services to the market by creating and increasing new opportunities. Flipkart, uber eats, Oola are well-known, highly successful examples of entrepreneurial firms. Identifying opportunities and finding solutions, companies create products and services that have worth, that are important to the customers, and that provide a measure of usefulness to the customers.

A lot more things need to take into consideration while taking the entrepreneurial firm abroad. they are product, weather, market target, market strategies, pricing, distribution, legal procedure, the population of that country, management, employees training and educating them, market trends for that country, product sustainability, imports and export laws, time to open a company, communication, and culture, etc.

An organization must evaluate before doing a business in abroad, mainly consider these four factors are:-

# Culture

Understanding the cultural difference is an important factor. It can determine whether the business is successful or not. If the product or service doesn't add value or meet the desires of the local market customer then it cannot sustain a long time. It is essential to understanding the community and what they needed. Understanding the local markets is extremely important for the business. So first, need to understand the culture of a country deeply.

# Legal and regulatory barriers

It is another important factor to know about the legal obligation of that country to start a business and how they supported by the government. Commencing a new business in the foreign markets which is achievable. If the business is flexible enough to work within the local laws and regulatory guidelines and then turn to the next level of the business plan. Identify hazards that may cause barriers for the business enterprise to run long term.

# Foreign government consideration

The stability of the local government and its authority are very important when reviewing overseas business Commencement. Aspects to consider are:

• exchange rates of currencies
• availability of resources and materials
• Communication and transportation facilities
• Government assistance programs for businesses
• Access to affordable capital
• Protection of policies
• Immigration and Employment Laws

Government stability holds the key to contract integrity, worker security and rights, trademark and holding and plenty of alternative sides in conducting business.

# Business case

It is another essential to understand that the business case responds to the challenges, adversity, and rewards of increasing overseas.

• Perform a market study to know the market's temperament, economic practicableness, market trends, monetary value patterns, and market forecasts, etc.
• Do a monetary practicableness study to work out if the move makes monetary sense
• Intellectual property and trademark protection, and ensuring the governmental authorities in this location acknowledge and shield the companies proprietary desires
• seek steerage ANd chance by participating in an exceedingly "local" partnership with an existing shopper or provider.

These are common modes of international-market entry mode are exporting, licensing, partnering, acquisition, and joint venturing.

# venture - one in every of the foremost standard modes of entry is that the institution of a venture, within which 2 businesses mix resources to sell merchandise or services.

# exporting - Exporting is the simplest way to enter a global market, and thus most companies begin their international growth victimization this model of entry.

# Licensing - Licensing are specialized modes of entry. In Licensing agreement, an overseas-based business will pay you a royalty or commission to use your brand name, manufacturing process, products, trademarks, and other intellectual properties.

# Aquisition - An acquisition is a dealings within which a firm gains management of another firm by getting its stock, exchanging the stock for its own, or, within the case of a non-public firm.

# Partnership - A Partnership involves a written agreement between two or a lot of enterprises to stipulating that the concerned parties can work during a sure manner for an exact time to attain a typical purpose.