Report on Importance of International Entrepreneurship in Economic Development

ASSIGNMENT 2

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
International entrepreneurship and economic development...................................................4
Entrepreneurial opportunities at international platform.........................................................5
Difference between entrepreneurship and international entrepreneurship.............................6
Roles of international entrepreneur in economic development..............................................7
Entrepreneurial entry into international business ..................................................................9
The issues that affects international entrepreneurship..........................................................12
CONCLUSION AND RECOMMENDATIONS..........................................................................13
REFERENCES..............................................................................................................................16

EXECUTIVE SUMMARY
The report comprises several roles and importance of international entrepreneurship in
economic development. The report ensures that the Development of international
entrepreneurship helps in improving the economy of the countries. The business is required to
conduct extensive research in order to understand the taste and preferences of the customers of
different country. Besides, the writing evaluates the difference between international
entrepreneurship and entrepreneurship, where entrepreneurship is a process where opportunities
are explored and identified when the organisational functions are in running while international
entrepreneurship is a process of attempting creation and innovation and for the firm. Moreover,
the report found out that increasing foreign entrepreneurs ensures, economic development which
Wealth creation and sharing, Create jobs, Balanced regional development, Improving standard of
living and increasing exports.
INTRODUCTION
Expansion of business at the international platform helps the business to sell its services
across the globe. It increases the company's market share which results in maximization of
profits and also contribute in countries economy. The report discusses the impact of host
country's economic condition on the entity. It includes technological, social and political factors
prevailing in the country. It further ponders on role of government in helping the business to
expand globally by providing financial and technological assistance (Benefits of International
Trade, 2010). Further, it focuses on availability of opportunities for the enterprises at
international platform. In the end, the report discusses the reason of rapid growth in
internationalisation at the market place such as, high demand, availability of resources in the
foreign countries etc.
MAIN BODY
The person who expands business across the geographical borders after earning enough
brand image and profits within the national boundaries is referred as international entrepreneur.
International entrepreneurship can be in the form of establishing new business or getting
involved in the joint venture to make a global presence. Development of international
entrepreneurship helps in improving the economy of the countries. The business is required to
conduct extensive research in order to understand the taste and preferences of the customers of
different country. It also has to take ponder on the economic development of the country and

make an estimate for the profits that can be earned by the entrepreneur (Carraher and Paridon,
2015). Another factor that are taken into consideration are government, legal and regulatory
policies framed for doing business. Some emerging key issues are discussed below:
International entrepreneurship and economic development
In the upcoming era, international entrepreneurship is the reason of global development.
Entrepreneurship is establishing opportunities for employment and innovation across the globe.
Further, there are several factors that bring threats or new growth opportunities to the business
such as, technology, fluctuation in the economy of trading country, demographical changes etc.
Shift in the consumer demand due to change in taste and preferences, lifestyle of customer and
change in income also act as major driving factors in any business. Some economic factors
which affects the international entrepreneurship are listed below:
Resources: Unavailability of resources can affect the functioning of the enterprise. The
quantity and quality of the available resources should be efficient enough to fulfil the purpose
and objective of the business. Natural resources include, plants, land, and water resources. Other
resources available beneath the ground such as oil, minerals, natural gas, metals and non-metals.
Further, the climatic conditions of the country also affects the smooth functioning of trade. For
instance, Arab countries have oil mines which shows that the cost of oil at these locations will be
low and the company which requires extensive oil in production can set up their factories and
expand their businesses in these countries (Cavusgil and Knight, 2015).
Foreign trade conditions: Some countries have stringent rules and entrepreneurs can
face tough time in entering these countries. There is a certain quality of benchmark followed by
the countries before importing goods. The company who wants to enter in another market have
to follow these laid down rules. Also, some entrepreneurs are not able to enter in certain market
due to their restricted policies regarding globalisation. There are few basic favourable conditions
which an entrepreneur follows which act as tonic to improve economic growth of international
market which are as follows:
Entrepreneur should ensure that shift of its manufacturing activities can increase the
industrial economy to developing economy of the country by not just selling commodities but by
also offering services.
Trading internationally improve the movement of goods and services to larger extent.