INTERNATIONAL ENTREPRENEURSHIP

OPPORTUNITIES

Presented By:Shikha jha

Sonu shivharePrashasti saxsenaAwishkar ashutosh

Shobit agarwal

INTRODUCTION Currently, there are immense opportunities for

entrepreneurs to directly engage in international trade. Many become traditional importers or exporters. However, there are many different ways that entrepreneurs can be involved in the global economy. In this world of instant communication, entrepreneurs can take anything that can be digitized and send it anywhere in the world. This gives entrepreneurs opportunities to provide services using world-wide resources that were, until recently, only available on the local level. It makes the market for services truly international.

Meaning and Definition The term international entrepreneurship was

introduced around 1988 to describe the many untapped foreign market that were open to new venture reflecting a new technological and cultural environment.

Mc Dougall (1989,p389) defined international entrepreneurship as “the development of international new venture or start up that, from their inception, engage in international business.

International entrepreneurship is “the process of an entrepreneur is conducting a business activities across national boundaries”. It may consist of exporting, licensing, opening a sales office in another country.

Nature of International Entrepreneurship

International entrepreneurship is the process of an entrepreneur conducting business activities across national boundaries.

Involvement of Two countries Language difference Comparative more risk Government intervention Payment in foreign currency Differs from Domestic business

Process of International Entrepreneurship Opportunities

Step1- Conduct researchStep2-Prepare a feasible StudyStep3- Secure adequate financingStep4-File the proper documentStep5-Draw opportunities and implement

plan

International entrepreneurial decisions are more complex due to such uncontrollable

factors

Economic developmentPolitical and legalCultural environmentTechnological environmentSubsidies offered by foreign government

Methods of Going International

Importing Importing is buying and shipping foreign-produced goods

for domestic consumption reason is that some products are not avail-able or produced domestically. (Diamonds, for example, arc not mined in the United States but mostly in Africa. As a result, American jewelry companies must import diamonds.)

Exporting When an entrepreneurial firm decides to participate actively

in the international arena as a seller, rather than a buyer, it becomes an exporter. Exporting is the shipping of a domesti cally produced good to a foreign destination for cons

Joint Venture Another alternative available to the entrepreneur in

the international arena is the joint venture. 20 A joint venture occurs when two or more firms analyze the benefits of creating a relationship, 21 pool their resources, and create a new entity to undertake productive eco nomic activity.

Direct Foreign Investment A direct foreign investment is a domestically

controlled foreign production facility. This does not mean the firm owns a majority of the operation. In some cases, less than 50 per cent ownership can constitute effective control because the stock ownership is widely dis persed. On the other hand, the entrepreneur may own 100 percent of the stock and not have control over the company

Licensing Licensing is a business arrangement in which

the manufacturer of a product (or a firm with proprietary rights over certain technology or trademarks) grants permission to some other group or individual to manufacture that product in return for specified royalties or other payments. Foreign licensing covers myriad contractual arrangements in which the business (licenser) provides patents, trademarks, manufacturing expertise, or technical services to a foreign business (licensee).

Motivations for going Global

• Profits• Competitive pressures• Unique product(s) or service(s)• Excess production capacity• Declining home-country sales• Unique market opportunity• Technological advantage• Tax benefits

10 good opportunities in India for entrepreneurs

Tourism

Textile

Software

Education and training

Food processing

Health care sector

Examples of some international companies

Apple Google Microsoft IBM Toyota Amazon.com LG electronics General Electrics Sony