Critical Literature Review of International Entrepreneurship and Economic Development

This report provides a critical literature review of international entrepreneurship and its impact on economic development. It discusses the opportunities and challenges faced by entrepreneurs in the global market.

CRITICAL LITERATURE
REVIEW OF THEIR
ALLOCATED TOPIC

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LITERATURE REVIEWS..............................................................................................................3
International entrepreneurship and economic deveopment.........................................................3
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Entrepreneurship can be defined as the procedure of creating, organizing and executing a
new business which is initially started in small firm. In simple word a person who introduces
new company in business market is known as entrepreneur. Entrepreneurship plays essential role
in countries economy because they improve employment ratio within country that automatically
enhance GDP rate of country.
LITERATURE REVIEW
International entrepreneurship and economic development
As per the view of Kaartemo, Coviello and Zettinig, (2018) international
entrepreneurship refers as the procedure of an entrepreneur carrying out business operations
beyond national boundaries. International entrepreneurship plays essential role in global market
because it leads innovation in product and services that can improves quality of life in which
people live. They support to enhance selling behaviour of customers as well generate profit.
International entrepreneurship allows entrepreneur to sell their products and services in foreign
market. It also assists entrepreneur to develop their entrepreneurial competitiveness in global
market.
As per the other perspectives Reuber, (2018), has illustrated benefits of international
entrepreneurship in their research paper. International entrepreneurship helps entrepreneur to
build good relationship with different customer in global market. Even it enhances their
purchasing behaviour by offering desirable products. Such kind entrepreneurship makes
entrepreneur sensitive towards their customers, and they adapt more respectful attitude towards
foreign customers and their habits. It gives opportunity to firm because they focus on customer
demands by applying customer segmentation strategy. It helps entrepreneur to promote a product
or services which meets each customer objectives across the world. Additionally, international
entrepreneurship helps entrepreneur to hire cheap labour. In simple means' entrepreneur can
outsource required labour when organization operates into international market. Even it enhances
sizes of firms by promoting business in different market like hypermarket, supermarket etc.

According to Kowalik, Danik and Sikora (2017) when an entrepreneur is start its
operations in the international market, then it'll need to use various natural resources, like; fuel,
gases, etc. In this case, this type of entrepreneurship is promoting reduction of natural resources.
On the other side, in international entrepreneurship an entrepreneur need to fulfil various
complicated legal formalities. When an entrepreneur runs their operations in other international
market, then it'll responsible to pay huge amount as a taxation. Many times political factors are
become very big barriers within operations of international entrepreneurship. In the international
entrepreneurship, an entrepreneur has faced great challenge of market competition, because
existing companies within international market are the biggest barriers to new entrants. An
entrepreneur always need to develop some modern and productive business strategies to deal
with these challenges of international entrepreneurship. Many times an entrepreneur can't able to
find appropriate source of funding in different countries, in which this type of situations is
become barrier to that entrepreneur. In the initial stage of enterprise, the owner need to attracts
lots of people towards own brand, so this is another tough challenge to an entrepreneur within
international market. Operational expense is too high for an enterprise when it runs its operations
globally, so this is another big cons of international entrepreneur.
As per the view Mainela, Puhakka and Wakkee, (2017) there are various opportunities
for international entrepreneurship which helps business to promote business in global market.
Invest in multiple businesses is also good opportunity where international entrepreneur can
invest on various business which is established in different countries across the world. It is not
only helps entrepreneur to promote their business but also generate high revenue. To run
multiple business instead of particular business can minimizes risk which occurs due to political,
economic, socio-cultural and environmental factors. There is an example to understand this
concept such as first time entrepreneur rather than taking an idea from ground gap, they appeal to
execute other businesses and become shareholders, minimizes risk without limiting opportunity
for profit.
However, some Reuber, (2018) has suggested angle investors in their research paper.
Angle investors is also another opportunity for international entrepreneur. These investors are
great resources for entrepreneur because they offer angles network in global market. Angle
investors provides proper funds which can help entrepreneur to develop new idea and implement
it in product or service. Thus, entrepreneur looks stress free about funds and access on products

and customer loyalty and services. Illustrated by Kaartemo, Coviello and Zettinig, (2018)
foreign market is third opportunity for international entrepreneurship where they can promote
their new product or services in emerging market. Foreign market always a golden opportunity
for any type of business because they get chance to introduce new idea and implement it in the
form of product and services. Entrepreneur focuses on customer and market which is different
from existing market and customer. Due to different market customer gets chance to improve
brand image in new market and maximizes demand of products within emerging market. Thus,
international entrepreneur has lots of opportunity to promote their business in global market.
However, some authors have criticized through their published paper. As per the opinions
given by Manso, (2016) apart from multiple business development and growth opportunities
entrepreneurs across the world carry they face numerous challenges that also restrict the business
development opportunities of entrepreneurs. Business expansion process for entrepreneurs is not
easy due to lack of financial resources. Entrepreneurship face plenty of challenges due to lack of
financial resources. Internationalisation of business requires heavy financial investments to build
infrastructure, establish the whole set up, developing strategical partnerships and other aspects
that requires investment of resources. Entrepreneurs also face issues in getting loans as the image
of entrepreneurs are not decent they are well-known for taking risks which also create hurdle for
entrepreneurs in taking business loans. Lensing is also an issue entrepreneurs face.
AS per the author in order to set up the business organisation in other countries across the
border primary activity business organisations and entrepreneurs needs to engage is to take
licence. Based on the opinions suggested by Siu-Lun, (2017). angel investors also look not keen
towards investing in the business set up of entrepreneurs. All investors want to invest in such
business set up who are well-established and lesser risks involved in business operations.
Entrepreneurs do not resist in taking risk at any point in business cycle in order to grow the
business set up. Due to this approach of entrepreneurs the risk involved in doing business is also
high in nature as compare to other business set-ups. The risk taking image of entrepreneurs resist
to all investors like angel investors and other financial institutions to invest in the business.
As stated by Barba-Sánchez and Atienza-Sahuquillo, (2018) entrepreneurs face many
challenges in order to conduct business operations. Among all other challenge entrepreneur face
plenty of criticism from the society. Entrepreneurship is not an old concept of doing business and
conducting business operations. Entrepreneurship is considered as an evolution in doing business

operation's. Apart from such an immense contribution entrepreneurs made the society is not
much familiar with the concept of entrepreneurship. Due to such an unfamiliar nature
entrepreneurs face plenty of criticism from the society in every aspect of doing business. Only
the entrepreneurs who has already witnessed successful with the business idea get acceptance but
other than that society criticize the business ideas and policies frame by entrepreneurs.
As stated by Fritsch and Storey, (2017) capital is a huge challenge entrepreneurs face. In
conducting any business operation's capital is the primary requirements business organisations
needs to engage with. Capital can be stated as the reflection of financial resource. Many ideas
and strategies frame by entrepreneurs do not get success due to lack of financial capacities and
resources. Entrepreneurs are well known for creating a huge business set up out of the least
number of resources. Entrepreneurs also not get often support from investors and banking
institution in respect to catering financial resources to entrepreneurial business operations.
Internationalization is a crucial process involved in business development and growth.
Irrespective of growth potential in order to cater the growth opportunities entrepreneurs needs to
engage with business expansion activities first. To conduct the business expansion financial
resources are the key.
As per the opinions given by Chowdhury, Audretsch and Belitski, (2019) apart from all
other challenges entrepreneurs also face huge challenge in finding customers. Business
expansion in international market play an effective role in business development and growth. To
entertain growth potential due to business internationalization finding new customer's in the
market is a key aspect. Entrepreneurs mostly witness resistance from the society due to lack of
awareness of society about the entrepreneurship business and its impacts. Because of the
resistance entrepreneurs face problems and issues in finding and establish a loyal customer base
for company's operations and business. Social resistance opposes society to get the benefits of
the services and products cater by entrepreneurs.
As per the views given by Dupuis, (2018) another challenge entrepreneurs face is to get
the proper human resource for conducting business operation's. Human resources play key role
in order to have an effective implementation of all the strategies and policies frame by
management of company to achieve growth and profitability in the target market. Because of the
negative attitude of society entrepreneurs face problems in getting skilled and efficient human
resources for various designations in the organisation hierarchy. Lack of human resources issues

also restrict the business operations of the company. Every organisation seeks effective human
resources to meet all objectives of business organisation. Productivity of all strategies and
business operations is also mostly depends upon the skill and abilities of company's employee's
and human resources. Due to resistance approach of society towards the entrepreneurship
business HRM of entrepreneurship business set up not get well efficient human resources for all
the positional role of the company. Human resources also play crucial role in the process of
business expansion in international market. Lack of efficient human resources restrict the growth
opportunities for entrepreneurs in international market. Author also guided that inappropriate
financial resources available to entrepreneurs also among one of the leading reason behind
having ineffective human resources at different operational activities of organisation. Because of
lack of financial resources entrepreneurs not get able to pay effectively to its employee's which
also resist the organisation in getting talented and skilled employee's for meeting various
positional roles in company.
As per the opinions given by Wiklund, Wright and Zahra, (2019) entrepreneurs get to
face multiple challenges specifically at the time of business expansion. Framing effective
marketing strategies is among one of the major challenge entrepreneurs face at the time of
business expansion and development. Entrepreneurs also lack in resources for doing business
operations lack of skilled employees at different positions in company is also among one of the
big challenge entrepreneur face. Due to ineffective human resources and employee's
entrepreneurs face plenty of challenges in framing effective marketing strategies for selling
company's products in the international market. Formation of marketing strategies also involve
market analysis and customer's need assessment and other relatable aspect. Due to insufficient
skilled human resources entrepreneurs lack in all the functions of strategy formation which
restrict the competitive advantages available for entrepreneurs with the support of such
strategies.
CONCLUSION
This report has concluded about the opportunities and challenges available for the
entrepreneurs in the respective markets. Entrepreneurs carry the business development and
growth opportunities by entering into international market and also in the new market segment in
the same country. This report also concludes about the challenges like social resistance, lack of
financial resources and other relatable resources for meeting business needs and objectives.

REFERENCES
Books and Journals
Barba-Sánchez, V. and Atienza-Sahuquillo, C., 2018. Entrepreneurial intention among
engineering students: The role of entrepreneurship education. European Research on
Management and Business Economics.24(1). pp.53-61.
Chowdhury, F., Audretsch, D. B. and Belitski, M., 2019. Institutions and entrepreneurship
quality. Entrepreneurship Theory and Practice.43(1).pp.51-81.
Dupuis, A., 2018. Entrepreneurship: New perspectives in a global age. Routledge.
Fritsch, M. and Storey, D. eds., 2017. Entrepreneurship in a Regional Context. Routledge.
Kaartemo, V., Coviello, N. and Zettinig, P., 2018. International Entrepreneurship as an
Admittance-Seeking Educational Field. Journal of Teaching in International
Business. 29(3) pp.185-212.
Kaartemo, V., Coviello, N. and Zettinig, P., 2018. International Entrepreneurship as an
Admittance-Seeking Educational Field. Journal of Teaching in International
Business. 29(3). pp.185-212.
Kowalik, I., Danik, L. and Sikora, T., 2017. Entrepreneurial orientation elements in the Polish
international new ventures. Baltic Journal of Management.
Mainela, T., Puhakka, V. and Wakkee, I., 2017. International Opportunities and Value Creation
in International Entrepreneurship. In Value Creation in International Business(pp. 55-
80). Palgrave Macmillan, Cham.
Manso, G., 2016. Experimentation and the Returns to Entrepreneurship. The Review of Financial
Studies.29(9). pp.2319-2340.
Reuber, A.R., 2018. Research themes about international entrepreneurship: Tales from the JIBS
backlist and onward journeys. In International Entrepreneurship (pp. 1-28). Palgrave
Macmillan, Cham.
Siu-Lun, W., 2017. Chinese entrepreneurship and economic development. In China After
Socialism: In the Footsteps of Eastern Europe or East Asia?.(pp. 130-148). Routledge.
Vadana, I.I and et.al., 2019. Digitalization of companies in international entrepreneurship and
marketing. International Marketing Review.
Wiklund, J., Wright, M. and Zahra, S.A., 2019. Conquering relevance: Entrepreneurship
research's grand challenge.