International SME Growth: Literature Review & Elon Musk Case

This assignment provides a comprehensive overview of international entrepreneurship, beginning with a case study of Elon Musk and his ventures, Tesla and Space X, highlighting his entrepreneurial traits and the theories underpinning his success. It delves into various types of entrepreneurship, including gender-based, family, financing, technology, social, habitual, and ethnicity entrepreneurship. The literature review focuses on growth and development in international SMEs, addressing the internationalization process, management practices, and challenges such as poor management and lack of experience. The report concludes by emphasizing the importance of understanding local languages and cultures for successful internationalization.

International
entrepreneurship

Contents
INTRODUCTION ..........................................................................................................................3
PART A...........................................................................................................................................4
Case study of international entrepreneur.........................................................................................4
Theories for international entrepreneurship development:..........................................................5
PART B............................................................................................................................................6
Types of entrepreneurship............................................................................................................6
Course work 2-Literature Review....................................................................................................7
CONCLUSION .............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
International entrepreneurship is a major economic activity in which a person conducts
global business in international market (Acs, 2017). The level of operations and functions in
international entrepreneurship is high as it involves high standard of operations in the business.
International entrepreneurship includes professionalism in different operations for business
growth and development. The intensity of risk associated with the business is also very high in
international entrepreneurship is very high as it includes high degree operations. In this report
various aspects and dimensions of international entrepreneurship are explained in a precise
manner. This report also includes various contributions which are applied in entrepreneurship
and their role in development of a business and countries.

PART A
Case study of international entrepreneur
The example of international entrepreneur taken into consideration is Elon Musk who is
founder of famous companies Tesla and Space X. Tesla is a multinational car company which
was founded in 200. The headquarters of Tesla are situated in California and form their company
delivers electric cars to whole world. Space X was founded in 2002 and is also headquartered in
California, United States. Elon Musk is bringing technology in many different ways to achieve
various goals. The company has also installed charging stations across United States to majorly
focus on development of the company. Elon Musk strongly believes in customer satisfaction so
he focuses on increasing customer satisfaction by providing optimum after sales service. The
demand of vehicles of Tesla is increasing in international and national market which is a major
advantage to Tesla (Basu, 2021). Elon Musk is continuously focusing on bringing advanced
technology in different products to ensure business stability. Many successful competitors are
impressed by the way Tesla is functioning and handling different marketing operations. Elon
Musk is also dedicated to provide quick accessibility of services in order to develop different
products and services. The innovation is key element of Elon Musk which makes him one of the
most successful entrepreneur in the world. Companies mainly prefer to develop a different
market approach at the marketplace which increases price of goods and services at the
marketplace.
Tesla is currently holding operations in many different countries Tesla is considered as
major company in the whole world which provides latest technology cars to the whole world.
Tesla is also focused on expansion of business in the global market by introducing electric cars.
The company has hired professional IT experts to produce well managed cars. Tesla takes
regular feedback from customers to improve quality production in different countries. Elon Musk
is ranked number 1 as a major entrepreneur who is dedicated to work in a peaceful environment
and focus on achieving results on time. The company is focused on gaining market growth in a
short period of time (Carmona, 2021). Elon Musk also prefer development of a precise strategy
with the help of strategic management to deliver best services. It is important for Elon Musk to
posses’ different entrepreneurial traits for successfully organising and managing large number of
employees. Elon Musk is well known entrepreneur all over the world who is inspiration for many

businessmen. The qualities which are there in Elon Musk and part of successful entrepreneur are
mentioned below:
 Time management- Elon musk is well known in the whole world for time
management. The entrepreneur is very much dedicated to achieve various time
related goals in a set period of time to achieve efficiency in operations. Elon Musk
also sets a time frame for different goals and activities which are essential for
business development. The company develops long, short and medium term goals
which are to be achieved in a specific time period. Elon Musk also teaches time
management skills to different subordinate employees in order to achieve goals and
objectives at faster pace.
 Goal oriented- Elon Musk is an entrepreneur who is dedicated to achieve different
goals. The objectives should be achieved in a minimum time frame and management
should focus on taking decisions while keeping different goals and objectives in
mind. For a successful entrepreneur it is essential to be goal oriented in order to
achieve different goals in a short span of time (Chakrabarty, 2021). The goal oriented
nature is also helpful in team development in a precise manner and also helps a
company to achieve professionalism and goodwill at the marketplace. In the era of
stiff competition between different companies it is compulsory for a business to be
goal oriented in order to achieve business targets.
 Enthusiasm and spirit- It is the major quality of Elon Musk to have a spirit and
enthusiasm related to the work. The spirit to do work is present in Elon Musk in a
major sense and is also useful in development of business practices. It is essential for
an entrepreneur to develop ethics and integrity in different operations in order to gain
competitive advantage (Esempio, 2021). Elon Musk is also a good motivator who is
majorly involved in motivating a large number of employees who are working for
the company. In the functioning of an entrepreneurship there are major tough times
when a person needs motivation. The entrepreneur must develop a precise strategy
and use universally adopted techniques in order to motivate self and different
employees.

Theories for international entrepreneurship development:
 Leadership theory- It is essential for a person to have leadership quality in order to
develop as a successful entrepreneur. Elon Musk has leadership quality which makes him
perfect to lead a team in the organisation. The main quality of leadership which is
performed by Elon Musk is democratic leadership style. Elon Musk believes in
consulting team members for taking different decisions by consulting team members.
Elon Musk majorly consult different leadership techniques and mainly chooses
democratic leadership style. The entrepreneur mainly consults with senior experts and
develop critical time management skills in a precise manner.
 Optimistic Theory- Elon Musk is a successful entrepreneur who is dedicated to find
optimum solutions to every problem. The company faces many hurdles at the
marketplace and it becomes essential for a company to find best way to deal with specific
problem. It is compulsory for a company to develop a precise business strategy with the
solution to every major problem. It is the ethical and moral responsibility of management
to find out optimum solutions for each obstacle which comes in between the company.
The optimistic nature of Elon Musk is helpful in development of different policies which
are essential for the growth of the business.
 Human relationship theory- The human relationship theory mainly focuses on
developing effective and healthy relations between employees (Theories of
entrepreneurship and business management, 2021). This is the theory uses a good
approach which is helpful in developing harmony between employees. It is major duty of
human resource management in an organisation to focus on this theory in order to
maintain good employee relations.
 Scientific management theory- This is a major theory which is to be used by an
employee to develop scientific and systematic relations. It is essential for an entrepreneur
to take assistance of scientific management operations in order to grow at marketplace in
a well organised manner.

PART B
Types of entrepreneurship
Gender based entrepreneurship: Under this type of entrepreneurship, opportunity has been
provided to both types of gender whether it is male or female. In today's period of time an
entrepreneur can be male and can be female also. In context of Space X, Elon musk is an
entrepreneur which is majorly driven by male parameter.
Family entrepreneurship: Under this type of entrepreneurship, business has been driven by
family members where decision making is influenced by multiple generations of a family
whether it is related by blood, marriage or adoption. Example of family entrepreneurship can be
Reliance (Etemad, 2021). This type of entrepreneurship has advantage that this can be fun for
longer period of time and can transferred to next generation as well.
Financing entrepreneurship: Under this type of entrepreneurship, financing which is a process
where funds have been provided making purchases, business activities and for investment
purpose. Banks are the major example who provide capital for businesses, investors and
consumers for achieving their goals.
Technology entrepreneurship: This is that kind of entrepreneurship which is a kind of
investment in a project that deploys specialised individuals. The technology entrepreneurship
takes assistance of information and technology. It also assembles heterogeneous assets which are
related to advances in scientific and technological knowledge.
Social entrepreneurship: It is that kind of entrepreneurship which is an approach by
individuals, group members and start-up companies for purpose of development, implementing
solutions to environmental, social and cultural issues.
Habitual entrepreneurship: This is that kind of entrepreneurship which is a number of high
profile entrepreneurs who owned successfully several businesses. These kind of individuals are
known as habitual entrepreneurs which reflects their ownership in more than one business.
Ethnicity entrepreneurship: Ethnic entrepreneurship is that kind of entrepreneurship which is
basically a set of connections and also regular pattern of interaction among people which shares
similar national background or experiences of migration (Faghih, 2019). Ethnic enterprises are
often those which results from involuntary or voluntary segregation or also include segmented
economic systems.

Course work 2-Literature Review
Growth & development in the international SME
According to the views of (Fakhreldin, 2021), internationalisation is defined as a
procedure in which designing of product and services is being done to fulfil the need of number
of users in different countries. The theory of international business organisations keeps an eye
on various management practices that are essential in desired growth of business. With the
process of internationalisation organisation can offer their products and services to other
countries around the globe in order to thrive for higher profitability. In this process organisation
produce wide range of services and products for the consumers in different nations around the
world. With the help of taking advantage of this corporate strategy organisation can expand their
business reach and can satisfy needs of customers from different countries around the world.
However, in order to effectively assure success in the process of internationalisation it is
essential for organisation to understand and emphasize upon particular country local language
and culture. This will allow them to reach to the maximum number of consumers through which
company can fulfil their needs and can assure success in this process in an effective manner.
Furthermore, it has been underlined that understanding of internationalisation process of small to
medium in size enterprise is essential for emerging economy in order to compete globally.
However, in this process then a number of issues that can be faced by SME these include, poor
management: It is the major issues that act as a reason of the failure of assembly in the process
of internationalisation as in this SME faces the issue of poor management of employees and
other organisational operations which led towards failure of successful internationalisation
process. Poor management acting as a major reason that will lead towards creating number of
issues and difficulties in the process of smooth internationalisation process in which organisation
can face degree of failure. Furthermore, lack of experience and knowledge is also one of the
major issues.
As stated by (Flores, 2019) theory of experience and behaviour management, number
of SME are having lacs of experience and knowledge related to the concept of
internationalisation. They are also having lack of knowledge in terms of the proper process that
will lead to success of internationalisation process. This factor is also one of the major reasons
that lead towards failure. In this, it is essential for SME to have proper understanding of this
concept in order to implement internationalisation process in an effective manner. In addition to

this, in terms of continuing business on international platform SME need requirements of
additional funds to finance operation and growth. In this, mismanagement of additional funds
performs the major role through which assembly can face failure. According to (Morozova,
2019), during the process of internationalisation proper requirement and sources through which
additional funds can be required to operate systematically and continuously on international
platform. In this, SME are required to overcome this barrier in effective manner. Along with this,
in order to conduct business on international platform SME can face the issue of high operating
cost as there are a number of factors that that towards fluctuations in currency which create the
need for SME to have a high operating cost as to perform their operations in effective manner. It
is the major factor through which SME can face failure during internationalisation process. Due
to globalisation organisations around the world are allowed to perform their business operations
on international platform in an effective manner. If views of (Rahman, 2021) are taken into
consideration, this increase in competition which is creating major reason of failure there are
number of organisations those who are investing in the process of internationalisation as to
assure more growth and development. Along with this, it has been evaluated that, governments
around the countries have imposed number of rules regulations and guidelines which is essential
for organisations to adhere in order to perform their business operations effectively. There are
different types of regulations imposed by government of all the nations around the world which
is different from each other. In this SME are required to make that strategy and keeps on
modifying them accordingly. This creates the major issue as in order to develop strategy
organisation is required to conduct proper planning that be a budget which creates the reason of
failure. According to the analysis it has been identified that in the process of internationalisation
SME are having significant opportunity of growth and development. However, in this process
there are different type of issues which might act as reason of business failure. These issues are
required to be properly understand in order to develop strategies accordingly. Proper
understanding of resources organisation to formulate plan and strategies accordingly and further
assure success in effective manner.
However, there are number of ways of overcoming barrier to Internationalization, this
will significantly lead SME to assure efficient growth and development in internationalization. A
company can also use human relations theory in order to succeed at the marketplace. There are
some certain ways such as, positive attitude of managers, internationalisation process require

managers to have a positive attitude in which managers in SME are required to be growth-
oriented, optimistic and confident. With the help of having these positive attitude managers can
ensure successful implementation of internationalisation process, as the help of maintaining a
good attitude managers can avoid negativity into the workplace, as in the process of
internationalisation organisation goes through a number of changes that some of employees may
restrict. In this with the help of positive attitude of managers in SME can overcome the barrier of
internationalisation process can be effectively overcome. Along with this, welcoming
international opportunities is also a significant measure of growth and development with the
help of internationalisation process in which they can not only expand their profitability but can
also have exposure of number of new markets, this will create significant opportunity for long-
term growth and sustainability. However, in this it is essential for company leaders and managers
to welcome international opportunities in an effective manner. It is an effective strategic option
through which SME can assure more growth and development in a well-defined and effective
manner. In addition to this, risk taking behaviour plays important role in the process of
internationalisation it is essential for SMS to have taking behaviour as it enables and encourages
innovations. Efficient risk-taking behaviour not only helps in taking international opportunities
for more growth and development but also proves to be a valuable lesson that will shape the
future business strategies in an effective manner. According to (Régnier, 2021), along with this it
has been underlined that internationalisation barriers can be overcome with the help of having
efficient risk-taking behaviour as in this organisation welcome to a possibility that significantly
towards higher growth in future. Furthermore, the other measure is proper knowledge of
customs regulations, as proper knowledge of custom regulations will effectively facilitate SME
to overcome the barrier of internationalisation. It has been identified that there are a number of
rules, regulations and guidelines that have been imposed by nations around the world that will
create number of risks in the smooth process of internationalisation for SMS. With the help of
having proper inefficient knowledge of custom regulation SME can operate a business function
efficiently without facing any kind of destruction, as negligence of custom regulation will lead
organisations operating their business in SME to face high losses and risk of continuation. Along
with this, another way to overcome the barriers of internationalisation is ability to work in
different cultures as every Nation around the world have different culture, norms and believes.
In order to assure higher growth and development organisation are required to be adaptable in

working in different cultures. As stated by (Reynolds, 2017), this requires organisation to have
adaptable nature as the major issue that SME face is adopting in different culture in which they
faced difficulties to operate the functions. In this SME are having positive attitude and ability to
work in different culture. This will lead SME to satisfy customers at higher extent and assure
long-term growth and development. As per the views of (Santos, 2021), at last, cross-culture
negotiation skills is mainly defined as interaction which is done typically in business which
occurs among various cultures. This ability allow organisation to possess some aspects such as
language relationship, trust and information legal and other form of authority elements. With the
help of having significant cross cultural negotiations skills SME can have high negotiating power
through which they can perform their business operations while developing positive relationship
with suppliers and other partners in the particular geographical location. Cross cultural
negotiations skill also facilitates SME to overcome the issue of increasing competition and high
operating cost, as it helps of having cross culture negotiation skills, they can develop relationship
with partners in the country in effective manner and can assure higher competition in an effective
manner. According to the analysis it has been identified that there are different types of ways
such as positive attitude of manager, risk taking behaviour, cross culture negotiation skills,
ability to work in different culture and more through which barrier of internationalisation can be
overcome by SME in effective manner. There is a significant opportunity for growth and
development in international SME. However, in this it is essential to overcome the barrier as this
can affect the process of internationalisation. Small business can assure success in
internationalisation with the help of overcoming the barriers as this can restrict their
development opportunity. Proper understanding and implementation of the strategies will lead
SME to assure higher growth and development on international platforms.
Internationalisation provide number of growth and development opportunity that will prove to be
a game changer for SME, as by developing products and services to satisfy the needs and
demands of international consumers business organisation operating as SME can assure
subsequent profitability and development. However, there are certain reason that will lead
business to failure include high interest rate, low sales, insufficient profit, inventory difficulties,
high competitiveness, lack of business knowledge, MIS management of fixed assets, in sufficient
capital and many more. As sated by (Schembri, 2021), these factors can not only affect small
business owners to operate their business functions efficiently but also impact upon their

internationalisation. Furthermore, there are number of factors which lead to failures. In this it is
essential for international entrepreneur or small-scale business owner to take account different
type of factors that can affect or influence the success and failure of the venture on international
scale. These can be further overcome with the help of taking advantage of different type of
strategies such as efficient knowledge of custom regulation, cross cultural negotiation skill,
adoption of locally marketing skills and working in different cultures. As stated by (Zucchella,
2021) in the process of internationalisation it is essential for SME those who are interesting on
international scale to select proper and adequate entry mode and emphasize upon the factors
affecting growth and development. This will help them to adequately focus on the factors that
allow organisations in SME to assure successful entry on international platform with adequate
entry method. Along with this SME are required to have information management process at
efficient rate in which they must have the understanding of using information and identifying the
need of information as to make collaboration with management process. Internationalisation
process required to perform the business organisation with some of the local individual as
efficient staff research will lead to acquire success, as the help of conducting business operations
with local staff SME can ensure success in internationalisation.
Thus, according to (Kucukaltan, 2019) the above-mentioned analysis of the factors it has
been identified that there are a number of reasons for the failure that can be seen from the case
study analysis of different companies such. As in terms with Alpha inadequate understanding of
market is the reason of failure. While in terms of Beta inability of providing services to
customers globally acted as the reason for failure. While failure to come up with the second
product heavyweight competitors and market local driven ability on one measure customer is the
reason of failure for Gamma and Delta respectively. In this Alpha face the consequences of
merged to finish company while the same with beta in terms. As stated by (Meunier, 2017) while
in context with Gamma the consequences of failure are IP sold to US based company while in
Delta IP was sold to an Australian competitor. This indicates that proper understanding of the
factors that will affect growth and development is required to be done by SME in order to assure
your successful internationalisation process.