International Entrepreneurship: Concepts, Features, and Approaches

The report provides an in-depth analysis of international entrepreneurship, covering concepts, features, and approaches. It explores the theories and principles behind international business expansion and the role of the entrepreneur. The report also discusses the benefits, risks, and challenges of international entrepreneurship, as well as the impact of economic conditions on business growth. Keywords: international entrepreneurship, international business, theories, benefits, risks

International
Entrepreneurship

Summary
The report is about International Entrepreneurship and contains details related to related
research subjects: International Business & Entrepreneurship. The analysis related to discuss
about the international activates. In the report International theories are interpreted and
explanation about the evolution of the international trade and expansion of multinational
entrepreneurship. The fundamental relationship about different theories help in the growing
business of an entrepreneur internationally. The related principle, emergence and inception
are also briefly described. The report is expanded into three formats along with different
approaches and theoretical knowledge about internationalism and entrepreneurship. There
are different methods and approach required for expanding the business internationally and
that to being an entrepreneur. The report also discusses about the benefits and opportunities,
risk, advantages and problems related to expansion of international entrepreneur. Being
discussion about these theories then also there is need of new theories as the expansion of any
new business in any other country requires great strategies and improvements.
Keywords: international entrepreneurship, Internationalization, international business, theory
building internationalisation

Table of Contents
Summary...............................................................................................................................................2
INTRODUCTION.....................................................................................................................................4
1.1 Concepts and approach of International Entrepreneurship............................................................4
1.2 Specific Features about International Entrepreneurship.................................................................6
1.3. SPECIFIC FEATURES AND FACES OF INTERNATIONAL ENTREPRENEURSHIP....................................8
1.4. INTERNATIONALISATION OF SMES AND INTERNATIONAL ENTREPRENEURSHIP.......................10
CONCLUSION.......................................................................................................................................13
REFERENCES........................................................................................................................................14
Table of Figures
Figure 1: Approach to Organization level of international Entrepreneurship given be Wach................5
Figure 2 International entrepreneurship as the amalgamation of three fields........................................8
Figure 3 The internationalisation process in the international entrepreneurship....................................9
Figure 4: An interpretative model for international entrepreneurship....................................................9

INTRODUCTION
International Entrepreneur, as the words are clear integral of innovation, risk taking
and proactive behaviour which are beyond the country boundaries and having creatives in
developing the values in the organization. Due to this, research related toentrepreneurship has
increased. Various theoretical approaches and theories can be explained which are related to
umbrella terms describing more about international entrepreneurship. It became popular
research in late 1980s and had got expanded in 1990s. There are many disputes related to
such building international entrepreneur (Sarasvathyandet.al., 2014). Building relation
between entrepreneur and international business has influenced many economics and
management sectors along with non-business sectors like sociology, political science,
geography, psychology and economic development.
The report describes about the issues and related factors of IE. Along with it benefits,
opportunities, risks and disadvantages are being discussed. The report discusses mostly about
the international entrepreneurship, where talking international is related to the outside
boundaries of the country. Mostly discussion and elaborations about the fundamentals about
the international entrepreneurship it origin, emergence in market and on which principles it is
based.
1.1 Concepts and approach of International Entrepreneurship
Past and historical ideas related to Internationalisation can be derived from the economics
context and theories based on the management. It can be described through various
systematic and schematic models (Zahra,Newey and Li, 2014). There are various new
theories, ideas, concepts and approaches to develop business over internationally. Sorensen
and Wach have described various models and proposed many researches about International
Entrepreneurship. According to Wach, which describes the 6 main research approaches and
subjective development from models of stages and its approaches.
The international entrepreneurship started in mid 1970s and development stages were
prosposed by Johanson and Vahlne as Uppsala model. Uppsala model have discussed about
the different temporal and various patterns(spaitial) of internationalism. The theroy describes
that for person to start new business in outer country must follow this steps. They should
firstly try to establish the business in their own country then they should expand their
business in their own country. After successful establishment of their home marketing they
should start exporting and start developing the new firm in the targeted country. Some points

must be remembered before establishment of new firm such as cultural factor, geographical
and political factors of the distint market. Along with this, economic conditions such as
infltaion and deflation also has high level of impact on the success of firm. Moreover, during
the period of slowdown purchasing powert of individuals decraeses to the significant level
and vice versa. By considering this, it can be stateed that international entepreeurship and
economic growth as well as developmentis highly influenced from economic condition.Such
researches are very necessary abd important to expand the busimess in outer country
(Terjesen, Hessels and Li, 2016).
.
Figure 1: Approach to Organization level of international Entrepreneurship given be
Wach
Sources: Refer from Wach (2012, p. 99)
The RBV has undergone various changes during course of globalization in mid 1970s.
Energy crises, innovative technological development, shorter product life cycles, saturation in
market due to different industries and change in business environment has greatly affected
the global network and business expansion. Earlier strategic views were not established,
theories and were based on RBV. But due to advancement and more interaction of various
firms with market based view there was need to develop and implement the strategic
management. The managerial and entrepreneurial skills, new and high capability and
competence are the key points of strategic management. Now for establishment of new firm
requires new and unique resources such as competence, attitudes, knowledge, capacities,
capabilities, reputation and relationship. Also there is need of the resources so that
international business can be expanded (Coviello, Jones and McDougall-Covin, 2015).

Basically it is related to role of suppliers, business contacts and customers. Stronger the
network more will be the expansion of the business and will open new opportunities.By
having an improved level of expansion within market the businesses can have better sales. It
impacts positively on the economic values. Along with this, economic terms in regard to
import and export will also be influenced.Network analysis and marketing mix can also help
to expand the business. But for being the entrepreneur there is need of building strategies and
planning to start new business.By offering highly innovative products and services and
thereby framing suitable marketing mix business entity can develop satisfaction among the
personnel.Through evolution of the existing network and approaching business aspects as
well as opportunities has been the basic ideas of entrepreneur. Entry of the new business in
the foreign countries creates new opportunities to local and increase foreign network along
with market. The new business ideas or concepts whose products has been not launched
creates desire in customer. For being successful entrepreneur, market strategies and
management abilities are required. For market development resources, marketing skills and
regarding information are needed.
Business strategies and market approach is required for doing new business in
international market by an entrepreneur. Other theories are related to the establishment of the
international business through entrepreneur are organizational structure and management
behaviour, transnational structure, competitive advantages and fundamental agreements.
Small and medium enterprises expand their business in outer boundaries without strategic
planning. For this they choose the neighbouring countries to expand their business. Basically
the expansion of small and medium enterprises has been great successful in the other
countries.It means the small businesses sales is also get advanced in critical manner. With an
assistance of this, key goals and objectives can be taken into account for sustainable
development. Domestic capabilities get advanced which assist in economic development.
They have really expanded their business internationally without plan or related
internationalism strategies (Schwens and et.al.,2017).
1.2 Specific Features about International Entrepreneurship.
International Entrepreneurship really focuses on the role of the entrepreneur and his
application in the business world mostly the medium and small enterprises. Mainly they
invest on the human and planning factor for the expansion of their business globally. SME
have to face different problems related to business expansion. The market demand and
essential risk in adaptation of market strategies have affected the business sources of SME

over internationally. Limited capabilities, lack of financial support and requirement of human
resources are the main sources which SME getsduring in his international business.
Developing new ideas and innovation can greatly help the SME in investing the project
internationally. SME have to develop different tactics and researches at executive level in
internationalization in order to achieve the market size, cost advantages like profit margin,
customer feedback and able to learn different market skills.
SME are the enterprise which have employees less than 250, where manager and
entrepreneur have the maximum powers to make decision related to the firms. Their general
task is about the look at the market and different prospect where business can be expended.
Prepare respective data sheets so that the data sheets can be utilized for the future expansion
and executing the plan so that the internationalization process continues. SME have to look
after their business in both ways that is internationally and to their own country (Mainela,
Puhakka, andServais, , 2014). They have to make related such strategies as the marketing
condition will be different in different countries. This causes extra tension to the SME as the
main cause of it are extra load management, overload of time management and business
development of the firm. Other disadvantages of SME are language skills, communication
problems, cultural understanding, strategic awareness and business approach internationally.
This creates burden and increases the work load which requires intensive and concentrated
focusing on the business expansion.International entrepreneurship makes vital contribution in
the economic growth and development.Moreover, entrepreneurial activities enhance
employment opportunity with the community to the significant level. In this way,
entrepreneurship reduces thelevel of poverty to the significant level. Along with
this,entrepreneurial activities also enhances living standard of people to the significant level.
Hence, by taking into all such as aspects it can be stated that entrepreneurial
activitiesfacilities high growth and development.
Traditional methods of business expansion internationally which were based on following
concepts:
 If some foreign employee for foreign investment has come with some international contacts.
 The settling of the location site and follow of customer strategy.
 Different suppliers’ connection and contacts who have already established their business
internationally and
 Expanding business on other location sites and future planning about the market there.

For being internationalization there are less capabilities as the local business affect the
strategies adopted by the foreign entrepreneur. SME market extension is the conceptual idea
which can expand due to planning and managing the world wide awareness and
socioeconomic relationship. For the entrepreneur decision made related to the company
should be fast and quickly. They have to make such planning and strategies as the market
condition of that place might change. They are also affected by the political and social factors
of that country. This leads to great disadvantages to the business in terms of global
capabilities. If they don’t have the respective market knowledge, then they are unable to
expand their business internationally and they require further investigation related to business
expansion and for growing as internationally they may consult the experts to get solution to
the issues. The international entrepreneur was earlier the research domain of two field which
were expanded by Zucchella and Sciabini. The new fundamental structure was strategic
management. Thus adding strategic management has made the three pillars of international
business and entrepreneurship. Strategic management now has included the strategic
entrepreneurship along with business strategical approach. Along with it their rich production
and influencing power can be studied separately (Zucchella. and Magnani, 2016). It indicates
that production level of business firm is well advanced in critical manner. By having an
improvement in production of goods the service delivery can be advanced. It impacts directly
on the demand and supply curve. It means it is related to the economy development.

1.3. SPECIFIC FEATURES AND FACES OF INTERNATIONAL
ENTREPRENEURSHIP
Figure 2 International entrepreneurship as the amalgamation of three fields
Source: adapted and extended from Zucchella&Sciabini (2007, p. 22).
International entrepreneur theories can be easily understood by the research area as theories
of entrepreneur and internationalization. This have been discussed in many researches and
many publishers are still doing research on such topics. IE can be regarded as the research
approach to the problems and issues of firm internationalization.
Understanding international entrepreneurship in broad way requires two different research
areas:
creative process of recognition and exploitation of opportunities in foreign markets; the
research area related to such area is same as the traditional approach to the theories and
practice of entrepreneurship using the same analytical tools as in the case of establishment of
domestic ventures; what is crucial, it is characterised by a high degree of creativity,
innovation and entrepreneurship, and a special role in the internationalisation process is
attributed to the entrepreneur (Hagen, Denicolai. and Zucchella, 2014).It indicates that
domestic approach of business will be boosted in desired manner. With an application of key

measures the issues can be overcome in desired manner. Along with this, economic values
can be promoted in desired manner.
 international studies and comparative research in the field of entrepreneurship; in
this sense, this research area is the same as with traditional international
comparative studies, placing entrepreneurship as the main subject of these
comparative studies
Figure 3The internationalisation process in the international entrepreneurship
Source: adapted and extended from Oyson& Whittaker (2010, p. 9).
It can be noticed that international entrepreneurship theory focuses on three main research
issues, which are the entrepreneur, the external business environment and the entrepreneurial
process. Zucchella&Sciabini (2007) emphasize that IE develops the typical
Internationalisationprocesssequence starting from opportunities recognition and ending with
corporate 16 Krzysztof Wach&CarstenWehrmann performance, in which resource
mobilisation and dynamic capabilities play a major role. Internationalisation is a learning
process of key employees based on opportunity recognition, opportunity seeking and
opportunity taking.

Figure 4: An interpretative model for international entrepreneurship
Source: Zucchella&Sciabini (2007, p. 126)
The parallel research about the international entrepreneurship is given by
 Internationalisation entrepreneurial
 Comparison international of entrepreneurship
 international comparisons of entrepreneurial internationalisation
1.4. INTERNATIONALISATION OF SMES ANDINTERNATIONAL
ENTREPRENEURSHIP
SMEs are an important part of international entrepreneurship. The so far existing
classic ideal-typical stages models of internationalisation refer primarily to large firms.
SME studies conclude that smaller businesses successfully operate internationally
without going through the particular phases of decision-making and action sequences
of widespread complex models of the theoretical literature. In contrast to the ideal-typical
construction of a strategy process, the entrepreneurial activity is observed in practice as the
decisive success factor. However, IE has not generated many outcomes due to its relatively
recentdevelopment into an independent approach (Glavas and Mathews, 2014).
Medium-sized and smaller companies expand to neighbouring countries
geographically or culturally, irrespective of which surrounding target markets are
interesting strategically and financially.This isturn facilitates high economic growth and
development to the significant level.The normal case of
internationalisation in medium-sized and smaller businesses is the use of business
opportunities and existing contacts. Beginning from this, most firms slowly proceed
from the "known" to the "unknown". This correlates with the

findings of organisation theories. Organisations slowly gain experience and
subsequently develop them further into a methodical approach based on
organisational learning. Internationalisation is a learning process characterised by a
chain of improvisation, trial, and error and strongly depends on the initiatives of key
employees. Medium-sized and smaller firms use less risky, smaller scale and less aggressive
market entry strategies particularly for cost reasons. In addition, they do not practice
the typical options of internationalisation models and theory such as licensing,
franchising and strategic alliances, joint ventures or mergers and acquisitions. At the
beginning, the focus is often put on export,
which is mostly due to customer demand from abroad (pull factor) or supplier
contacts. On this basis, an average medium-sized business establishes a sales
subsidiary abroad, with continuous sales and the achievement of a specific level of
sales volume. Then it expands, depending on sales volume, transportation and wage
costs, and sets up a permanent establishment with a department for research and
development and/or a production facility.
SME entrepreneurs did not consider in their past internationalization activities and which thus
caused unwelcome "surprises"
 The focus on labour and land costs led to an underestimation of the total sum of direct and
indirect costs of an international production net. Costs for substitutions of assets and
machinery, qualification costs for employees, traveling expenditures for home staff that are
needed abroad, etc. we’re not considered.
 organization of information flow and controlling, processing, quality assurance, etc.
lacking management capabilities at the foreign executive level, handling of different quality
standards, training and working traditions such as absence, fluctuation, gender discrimination
etc (Dimitratos andet.al.,2014)
 (manifested in a lacking perceived fit of business tasks or goals of the foreign management,
in the worst case know-how diffusion via theft or plagiarism.
 starting with missing repair services, replacement investment possibilities, suppliers of main
parts
 non-transparent cultural and political background (of business methods and cultures,
working traditions, institutions and administrative machinery

This demands attention and trust that can be built up and smoothed out by proximity; not only
spatial closeness, but personal as well. Internationally successful SMEs have developed this
proximity through the creation of internal and external network interfaces. This means that
the entrepreneurs managed to link and expand their business sphere on two levels:
* The business to business level (development of network capabilities between the home
and the host country through the exchange of employees, shared trainings, and the creation of
responsible interface positions that relieve the SME entrepreneur of the main task of pulling
the network together or building up trust between the units).
* the local level (acquisition of local and regional knowledge about the embeddedness of the
new business, the foreign educational and training system, business methods and routines,
supporting institutions, research institutions, unions and employers associations, supplier
nets).
Therefore, global network capabilities describe a complex set of entrepreneurial
competencies such as:
* The skill to connect and integrate home and foreign business through trust and division of
labour,
* the ability to integrate in a foreign socioeconomic environment.
Key factors for the long-term establishment of a solid globalization trajectory are the
development of local network positions abroad and of internal business co-ordination
mechanisms that are based on a trust-filled relationship. SMEs which cannot build up the
necessary global networking capabilities run the permanent risk of losing control over the
value chain and the ongoing processes. In the worst case scenario, the SME runs the risk of
insolvency and bankruptcy (Wach, K. and Wehrman, 2014). The investigated cases provide a
deep insight into is management or, put another way, "mis-networking" that led to alarming
business situations: entrepreneurs close their eyes to the need to interlink and become
familiar with the business atmosphere abroad. They fail to understand cultural differences
and fail to adapt to them.By having an improved focus on long term sustainability and
understanding of cultural values the productivity can be advanced. With an assistance of this,
economic measures can be overcome in desired manner. Economic values in regard to

sustainable development can be accomplished effectively. Suffering from time pressure,
many have not been willing or able to take the time to integrate the different units into one
network. This leads to negative experiences with internationalization that can cause dramatic
business results or a retreat from and revocation of the international engagement. Surveys
show that up to 30 percent of German SME internationalization projects are totally or partly
relocated to the home base. All firms, independent of size, have to cope with the evolutionary
dynamics inherent in internationalization processes. Traditional SME entrepreneurs have to
adjust to these dynamics or otherwise run the risk of missing international or business
activities. The capability to be aware of the need to react, to change and to adequately adapt
is a matter of survival. Depending on the form and demands of the international dynamics,
SMEs can follow varying strategies of
* intensification (extension of the international engagement in terms of size, new forms or
markets).
* alternation (change of the international engagement in terms of internationalization
strategy, form or size). and
* back sourcing (closing down the international business, temporarily or permanent
reconcentration on the home base depending on local and regional production conditions).
SMEs try to neutralize problems of evolutionary dynamics if they can enhance their
entrepreneurial and network abilities. But today's economic environment is turbulent and
unpredictable. Nevertheless, the number of successful international SMEs is increasing due to
their flexibility and innovative power to adapt to global demands. This learning loop pulls
the separate meaning and action systems together, interlinks them strongly, and enables them
to act instead of just react (Oparaocha, 2015).
CONCLUSION
The development of successful border-crossing business activities can be termed
"globalization" or "internationalization" because it is a process in which the firm learns to
explore and exploit the differentiated worldwide environment. The traditional focus on
"internationalization" is discussed. In this paper, we outlined the current need for an
internationalization theory targeting, especially with SMEs. Born global and traditional SMEs
possess very different assets of international know-how at the beginning of the

internationalization process. The entrepreneurial, networking, and evolutionary dynamics
capabilities are marked by the former experiences of the entrepreneurs.The latest empirical
findings prove strong deviancies from classical international incremental stage models. The
global learning loops enhance knowledge and capabilities of SME entrepreneurs via self-
made experiences and network ties abroad. The consequences are not necessarily an
increasing internationalization of SMEs' further actions. Alternation and backsourcing can be
part of the internationalization process. A higher level of global entrepreneurial, network, and
evolutionary dynamics capabilities do not automatically suggest a more advanced stage of
international engagement. The awareness and use of regional business networks instead of
global ones can result in newly gained network capabilities. This shows a need for a further
improvement of internationalization theories. A central concern is the integration of existing
theoretical approaches into a common, commensurable framework in order to cope with the
complexity and dynamics of globalization.
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