Significance of International Entrepreneurship in Economic Development

This article discusses the importance of international entrepreneurship in economic development. It covers topics such as the expansion of domestic markets, increase in sales & profit, low manufacturing cost, increase in GDP, globalization of competitors, new jobs and opportunities, promotion of innovation, and social changes. The article also highlights the relation between international entrepreneurship and technological advancement and culture awareness.

Literature Review

Abstract
The entrepreneur is likely to utilize ample of resources so that the business venture can
grow successfully. International entrepreneurship is a significant combination of innovative, risk
taking behavior that crosses the national border with an intention to create business values. In
other words, when people move in any other country to run the business, it is known as the
international entrepreneurship. It is found that it is identified that international entrepreneurship
significantly contributes in economic development and enhancement in terms of increasing GDP,
increasing the sales & profit margin, lowering down the manufacturing cost, globalization of
competitors and more. International entrepreneurship is related to the technological advancement
and culture awareness that help the new businesses to access the foreign market.

Table of Contents
Table of Contents........................................................................................................................................3
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
The significance of international entrepreneurship in economic development is mentioned below:............5
CONCLUSION...........................................................................................................................................8
References.................................................................................................................................................10

INTRODUCTION
Currently, the most crucial factor to drive growth in terms of economy, country,
individually and more, it is imperative to follow crucial entrepreneurial practices.
Entrepreneurship plays an integral role in the overall success of the economy(Achim, Borlea and
Văidean, 2021). It is an activity of bearing risk with an aim to start new business. Here, the
entrepreneur is likely to utilize ample of resources so that the business venture can grow
successfully. Nowadays, entrepreneurship is gaining popularity across the world as people wish
to start their own business so that they can earn tremendous amount of profit. In the present era,
the dream of entrepreneurs is to develop the business at international level(Atamas and et. al.,
2020). For this purpose, they are likely to think to move towards international market as it is
helpful in increasing the business value. The another crucial reason of moving internationally is
to do business across the boundaries of a country. When the entrepreneur has been achieved
maturity in the domestic market, it is wise to shift towards the international market so that the
profit margin can be maximized. In other words, international entrepreneurship is a significant
combination of innovative, risk taking behavior that crosses the national border with an intention
to create business values(Baier-Fuentes and et. al., 2019). In other words, when a person move
in any other country to run the business, it is known as the international entrepreneurship.
MAIN BODY
An entrepreneur introduces innovative technologies, products and services which assists
in increasing rivalry among the existing firms(Dana,2017). He provides a new opportunities of
employment whether it is for short term or long term.
Economic development is about investment in growth & prosperity of economy so that
the individuals can enjoy a better lifestyle. Promoting inclusive and sustainable growth of the
economy is imperative to drive progress, creating jobs and improving the living standard.
Economic development is directly related to employment(Dvouletý, 2017). In developed
economies, there are several opportunities of employment so that people can earn sufficient
amount of income to live a better life (Li, Y., Huang, S.S. and Song, L., 2020). In other words,
economic growth is fundamental need for the development of each & every country. To grow
economically, it is important for a company to have stable environment, functioning markets and

access of effective financial services. It is monitored that economic growth is created by people
hence the vocational training programs are arranged to develop the competencies among
individuals(Emontspool and Servais, 2017). The economic growth is significant for the
development of a nation in an efficient manner.
International entrepreneurship has significant relation with economic development. This
entrepreneurship plays a significant role in enhancement of economy by facilitating innovation,
creativity and more. Through international entrepreneurship, it is possible to develop the
business globally(Etemad, 2017). It allows the entrepreneurs to grow the business in an efficient
manner. In addition, it facilitates the cross border transactions that is imperative to make the
global image of a country. It involves all those activities which are innovative and cross the
boarders with purpose of growing business or create value for it. This follows the opportunities
which help in flourishing business and gain competitive advantage from the entrepreneur
perspective. It plays a vital role in economic development which bring significant changes in the
economies of market and raises the productivity of the firms. Economic development refers to
the growth of economies at different level. The development of economies is measured through
ample of indicator like GDP growth, enhancement in living standard and more. Basically,
economic development is related to creation of wealth so that the community benefits can be
realized( Opute and et.al , 2021).
The significance of international entrepreneurship in economic development is mentioned
below:
Expansion of domestic market: Domestic market is also a crucial component of
economic growth. Here, expanding the domestic market is essential to increase the sales & profit
margin. Through international expansion, it is possible to increase the boundaries of business
beyond the national boundaries. In addition to this, expansion of domestic markets help in
inflating the sales & profit margin significantly(Ferreira and et. al., 2017). It also helps in
generating employment opportunities so that the living standard of the individuals got improved.
Apart from this, expansion of domestic market is also significant in enhancing the flow of
income within the economy which generated growth opportunities for the country. When an

entrepreneur has been covered the domestic market, the next step is to move towards
international market(Fritsch and Wyrwich, 2017). Here, the expansion is highly important to
ensure the growth and enlargement of the economy in the future period of time.
Increase sales & profit: International entrepreneurship significantly contributes in
enhancement in sales and profit margin. Earning higher sales & profit makes the entrepreneurs
enable to contribute in the growth of economy. After reaching at the saturation point in domestic
market, the entrepreneurs move into international market so that they can earn substantial
amount of profitability(Galvão and et. al., 2017). In addition to this, international
entrepreneurship is important to enhance the overall profit margin by targeting huge number of
customers. It is analyzed that international entrepreneurship makes the individuals enable to
target large set of audiences so that they can maximize the profit margin in significant manner.
Apart from this, international entrepreneurship is really effective to improve the overall market
presence of a company(Haddoud, Onjewu and Jones, 2019). By earning significant amount of
profit, an entrepreneur can easily contribute in economic growth of the country( Kovid, R.K.,
Rana, S. and Omrane, A., 2022).
Low manufacturing cost: International entrepreneurship is significant to decrease the
manufacturing cost. For certain products, it is quite costly to produce them in the home country
that might enhance the overall cost of production significantly. Here, international
entrepreneurship is helpful in minimizing the overall cost so that the business organization can
offer products to the customers at minimum price. It is analyzed that international
entrepreneurship makes the entrepreneurs enable to make use of updated & advance technology
for the further betterment(Hamdan and et. al., 2019). By lowering down the manufacturing cost,
an entrepreneur can easily earn substantial amount of profit. If a company minimizes the
manufacturing cost, it makes possible to produce the products at lower cost with an aim to earn
potential amount of profit in an efficient manner. In addition to this, lowering manufacturing cost
makes it easy for the entrepreneur to increase the overall profit margin. Here, the entrepreneurs
can make efficient utilization of the available resources that is important for the growth and
success of the economy(Jafari-Sadeghi, Kimiagari and Biancone, 2019).
Increase in GDP: GDP is the most significant indicator of economic development. GDP
refers to the total amount of production that is done within a particular period of time. Increasing

GDP is highly important to ensure the economic growth of country(Kasemsap, 2017). It is
analyzed that international entrepreneurship is helpful in contributing in the overall economic
development . Here, entrepreneurs are likely to contribute in the production of quality products
and services. For this purpose, they use innovative techniques so that the efficient products can
be produced. It will help in increasing the GDP of country that is crucial for the purpose of
economic development. International entrepreneurship significantly contributes in development
of innovative products and services to grab the attention of customers(Mavaddaty and et. al.,
2018). This is helpful in facilitating increment in the overall GDP of the country for further
betterment. Through international entrepreneurship, it is possible to develop the business
globally. It allows the entrepreneurs to grow the business in an efficient manner. It is identified
that international entrepreneurship significantly contributes in economic development and
enhancement in terms of increasing GDP, increasing the sales & profit margin, lowering down
the manufacturing cost, globalization of competitors and more. Additionally, the international
entrepreneurship is important in terms of growth & enhancement of economy efficiently
(Manolopoulos, D., 2018).
Globalization of competitors: International entrepreneurship is helpful in globalization
of customers and competitors(Medeiros and et. al., 2020) It is monitored that international
business is likely to enhance the opportunities of survival and also motivates the company to face
competition in market which eventually leads towards growth. In addition to this, globalization
drives growth and eventually makes the company enable to survive in the global environment in
an efficient manner. Apart from this, globalization also plays an integral role in economic
development. Additionally, international entrepreneurship is important to drive growth at
international level so that the economy of the national can also grow significantly( Hadryś-
Nowak, A., 2018).
New jobs and opportunities: Entrepreneur is a person who takes risk to enter into the
new market with new technologies, products or services which provide various challenges and
opportunities for growth or development(Moradi, Sakhdari and Saniei,2017). Entrepreneur
brings lot of opportunities of employment that help in improving the living standard of the
people. It assist in developing or creating huge amount of entry level jobs that are important to
turn unskilled people to to skilled people by providing them training.

Economic growth: An entrepreneur prepares the workers for the large industries and
utilises the existing resources in most effective ways to generate wealth and other
opportunities(Morozova, Popkova, and Litvinova, 2019).. This helps in enhancing the income of
national where government provides various benefits to the the citizens which lead to the growth
of the economy. It creates new job opportunities which creates new sources for revenue and
profits generation. When the financial resources are pooled so it enable the entrepreneur to
create the basis of wealth creation in an economy(Porfírio, Mendes, and Felício, 2018).
Promotes innovation: Entrepreneur brings new innovation that open the doors for the
new ventures, markets, products and so on. He helps in solving the trouble of the existing
products and technology available in the market and introduce new technology to overcome the
barrier to run a business(Sadeghi and et. al., 2019). A business person has potential to improve
the lives of the people and provide them opportunity to connect with them to develop their
standard of living. This will promote development with the new ideas and perspective so that
they can amend the existing one. They cultivate their ideas top shape the business in a new so
that they can overcome the competitors(Schmitz and et. al., 2017).
Social changes: An entrepreneurs offers new opportunities for the improvement so that
the people reduce their dependence on the outdated good, service and technologies. He brings
changes in the culture of the society and break their tradition to reduce over dependency on the
obsolete methods and systems(Tabares and et. al., 2021). They are the pioneer of the new
technologies and system because these changes are associated with improved lifestyles of the
person and their benevolent thinking with improved morale. Therefore, it gradually impact the
national and global changes also takes to higher economic growth (Bigliardi, B., Filippelli, S.,
Passaro, R. and Quinto, I., 2022).
CONCLUSION
From the above-mentioned information, it is analyzed that international entrepreneurship
is a practice of developing innovative and creative products to offer them to the global audiences.
It is monitored that international entrepreneurship has significant relation with economic
development. This entrepreneurship plays a significant role in enhancement of economy by
facilitating innovation, creativity and more. Through international entrepreneurship, it is possible

to develop the business globally. It allows the entrepreneurs to grow the business in an efficient
manner. It is identified that international entrepreneurship significantly contributes in economic
development and enhancement in terms of increasing GDP, increasing the sales & profit margin,
lowering down the manufacturing cost, globalization of competitors and more. Additionally, the
international entrepreneurship is important in terms of growth & enhancement of economy
efficiently. It is found that international entrepreneurship is related to the technological
advancement and culture awareness that help the new businesses to access the foreign market.
It involves all those activities which are innovative and cross the boarders with purpose of
growing business or create value for it.

References
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