International Entrepreneurship & Economic Development

This article explores the significant relation between international entrepreneurship and economic development. It discusses how international entrepreneurship contributes to GDP growth, sales & profit margin, lowering down the manufacturing cost, globalization of competitors, and more. It also highlights the importance of international entrepreneurship in terms of growth & enhancement of the economy efficiently. The article is relevant to the subject of entrepreneurship and economic development and can be useful for students pursuing courses in business and management.

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

Table of Contents
Title: International Entrepreneurship & economic development.................................................................3
References...................................................................................................................................................8

Title: International Entrepreneurship & economic development
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. It is an activity of
bearing risk with an aim to start new business (Tabares and et. al., 2021). 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 (Dana, 2017). 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. In other words, when a person move in any other country to run the business, it
is known as the international entrepreneurship (Dvouletý, 2017).
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. 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 (Jafari-Sadeghi, Kimiagari and Biancone, 2019). An entrepreneur
introduces innovative technologies, products and services which assists in increasing rivalry
among the existing firms. He provides a new opportunities of employment whether it is for short
term or long term (Sadeghi and et. al., 2019).
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 (Achim, Borlea and Văidean, 2021). It
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. In developed economies, there are several opportunities of employment
so that people can earn sufficient amount of income to live a better life. 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 (Porfírio, Mendes and Felício, 2018). It is monitored that
economic growth is created by people hence the vocational training programs are arranged to
develop the competencies among individuals. The economic growth is significant for the
development of a nation in an efficient manner (Ferreira and et. al., 2017).
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 (Galvão and et. al., 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. 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 (Etemad, 2017). In addition to this, expansion of domestic
markets help in inflating the sales & profit margin significantly. 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. Here, the

expansion is highly important to ensure the growth and enlargement of the economy in the future
period of time (Baier-Fuentes and et. al., 2019).
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 (Fritsch and Wyrwich, 2017). After reaching at
the saturation point in domestic market, the entrepreneurs move into international market so that
they can earn substantial amount of profitability. 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 (Schmitz and et. al., 2017). By earning significant amount of profit, an
entrepreneur can easily contribute in economic growth of the country.
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 (Morozova, Popkova and
Litvinova, 2019). 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. 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 (Emontspool and Servais, 2017). 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.
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. It is analyzed that
international entrepreneurship is helpful in contributing in the overall economic development

(Mavaddaty and et. al., 2018). 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. This is helpful in facilitating increment in the overall GDP of the country for further
betterment (Hamdan and et. al., 2019).
Globalization of competitors: International entrepreneurship is helpful in globalization
of customers and competitors. 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 (Medeiros and et. al., 2020). 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 (Atamas and et. al., 2020). Additionally, international entrepreneurship is important
to drive growth at international level so that the economy of the national can also grow
significantly.
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. Entrepreneur brings lot of opportunities of employment
that help in improving the living standard of the people (Economic Development and
Entrepreneurship, 2014 ). 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.
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 (Moradi, Sakhdari and Saniei, 2017).
When the financial resources are pooled so it enable the entrepreneur to create the basis of
wealth creation in an economy.

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. 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 (TKasemsap,
2017). 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.
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 (Durmanov and et. al., 2020). 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.
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 (Haddoud, Onjewu and Jones, 2019). 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
Books and journals
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