Global Entrepreneurship Theory vs. Practice

This report examines the gap between the theory and practice of global entrepreneurship. It begins by introducing global entrepreneurship and its relationship with innovation, highlighting the importance of innovation for competitiveness and sustainability in the global market. The report then delves into various theories of global entrepreneurship, including economic, psychological, resource-based, opportunity-based, and sociological theories, as well as network theory. It identifies key challenges in global entrepreneurship, such as financial constraints, manpower issues (skilled labor shortages and cultural differences), marketing difficulties, and challenges related to support organizations and government policies. The report then discusses the development of global entrepreneurship, citing statistics and providing case studies of Tesco Plc and Encantos de Puerto Rico to illustrate both the opportunities and challenges involved in expanding businesses internationally. The conclusion emphasizes that while global entrepreneurship offers significant opportunities, overcoming challenges through thorough market research and appropriate policies is crucial for success.

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Introduction to Global Entrepreneurship Theory Vs. Practice Gap:
Development of Global Entrepreneurship

Global Entrepreneurship Theory Vs. Practice Gap: 1

Global Entrepreneurship Theory Vs. Practice Gap: 2
Table of Contents
INTRODUCTION....................................................................................................................................3
GLOBAL ENTREPRENEURSHIP AND INNOVATION...............................................................................................3
THEORIES OF GLOBAL ENTREPRENEURSHIP.....................................................................................................3
OBJECTIVES.............................................................................................................................................3
CHALLENGES AND ISSUES REGARDING THE DEVELOPMENT OF GLOBAL ENTREPRENEURSHIP.......................................4
CHALLENGES RELATED TO FINANCE.....................................................................................................................4
ISSUES OF MANPOWER.....................................................................................................................................4
OTHER CHALLENGES.........................................................................................................................................4
CHALLENGES OF SUPPORT ORGANIZATION AND GOVERNMENT.................................................................................5
DEVELOPMENT OF GLOBAL ENTREPRENEURSHIP...............................................................................................5
STATICS AND EXAMPLE FOR THE DEVELOPMENT OF GLOBAL ENTREPRENEURSHIP....................................................6
TESCO PLC..............................................................................................................................................6
CONCLUSION.......................................................................................................................................7
REFERENCES.........................................................................................................................................9

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Introduction
With the rapid advancement of technology and the powers of globalization, most of the
small and medium enterprises start their business in the international market and the world has
become the destination of international business and competition (Acs et al, 2003). In the global
economy, all the organizations have to face several challenges that are substantial and
innumerable. Dealing with these challenges and keeping speed with advancement is not easy but
on the other hand side, these changes bring some unexpected opportunities. Entrepreneurship is
the most dominant economic power and empowering individuals to find opportunities from these
circumstances. It is the symbol of adopted techniques and tendencies as well as the success of the
business. Entrepreneurship which is done all over the world is known as the Global
entrepreneurship (Kirzner, 2015).
Global Entrepreneurship and Innovation
Innovation is one of the most important elements contributing to the success of the
business as it is essential for getting the advantages of competition and building the sustainability
of the business in the global market. It includes the methods for examining and analysis of new
venture ideas and opportunities, approaches required for accessing and acquiring the several
resources, strategies for expanding as well as accessing the existing business and developing the
competency and knowledge for meeting the several challenges of marketing and managing a
growing corporate. The innovation aims to constantly grow and renew any entrepreneurship with
a much advanced or better products, more efficient and effective process, and enhance business
models (Naranjo-Valencia et al, 2018).

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Global entrepreneurship finds and carries out innovative and new activities in the smooth
running of the business across the national borders. These activities include licensing, opening a
new office for sale, exporting or accessing other ventures. The main objective of the global
entrepreneurship is promoting the exporting as well as importing. It is bringing the countries
closer worldwide. It expands a current business on a global scale and promoting entrepreneurs to
create their business in other countries. Promoting international trading, it makes several
opportunities on a global market. It enhances domestic competitiveness as the dependence of
business on the domestic market reduces. It stretches and builds market capacities and awareness
of global marketers as it transfers the new ideas of product and competitive information of
different marketers. It helps to minimize the dependence of the seasonal market in the domestic
market or local market finding the new target market and maximizing the sales and profits.
Theories of Global Entrepreneurship
There are various theories regarding the Global Entrepreneurship including Economic
Theories, Psychological Theories, Resource-Based Theories, Opportunity based theory and
Sociological Theories, theories of systematic innovation, the theory of leadership and so on
(Forsgren, 2017). The economic theories focus mostly on the economic conditions and
opportunities created by these conditions. Developed by a psychologist David McClelland, the
psychological theory is more focused on mental and emotional elements in an individual
deriving the entrepreneurial individual. Paul D Reynolds introduced the sociological theory
which is based on the four elements including ethnic identification, social-political
circumstances, social networks and a wish for a meaningful life. Peter Drucker has developed the
opportunities-based theory. He emphasized that a business expands after identify and taking the
benefit of several opportunities created by cultural, social and technological changes. Resources

Global Entrepreneurship Theory Vs. Practice Gap: 5
based theory refers to the way used by individuals to control various types of resources to obtain
the entrepreneurial profits. These resources include mostly the capital for ventures, the
information provided by the social networks and human resources such as qualification and skill.
As per the network theory, for the entrepreneur, networking is a strong instrument, and
network assessment has been a strong framework for global entrepreneurial scientists (Huggins
and Thompson, 2017). Companies use networks so as to gain access to the appropriate and
required resources, enhance strategic positions, control transaction cost, learn fresh abilities, gain
credibility and handle fast technological changes favorably. Networks emphasize standards of
reciprocity, private relationships, trust as well as reputation. The network of entrepreneurs
constitutes an untouchable and idiosyncratic social capital and appreciates it through repeated
interactions that assist create trust (Huggins and Thompson, 2015). Trust is the fundamental
component that determines the strength of the network connection. When an entrepreneur makes
use of his / her social resources through a network contact in an exchange, a debt is incurred for
which correlation is anticipated.
Objectives
 Examining the major challenges and issues regarding the Development of Global
Entrepreneurship.
 Examining the academic theories, viewpoints along with the academic literature finding
Development of Global Entrepreneurship.
 Providing some of the summarized and evaluative findings based on real-life and static to
illustrate on the Development of Global Entrepreneurship.

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Challenges and Issues Regarding the Development of Global Entrepreneurship
Doing business activities in the global market is not as easy as the business has to identify
and overcome several challenges. Enterprises face many issues and changes in establishing,
managing and running of the business. This affects the development of global entrepreneurship
(Chepurenko, 2015). Some of the challenges have been mention below:
Challenges Related To Finance
It includes the difficulty in gaining credit, limited working capital, delay in the
advancement of loans by banks or other financial institutes as well as difficulty in being paid
from customers after the sale on credit. In ability to lead the firm in overcoming such challenges
creates a practice gap in comparison with the theory of leadership.
Issues of Manpower
Unavailability of the skilled manpower is one of the major issues. It includes labor
shortage, non-cooperative behavior of the labor and lack of skilled and experienced labor as well
as issues due to cultural differences (Chepurenko, 2015). This too leads to a practice gap in
comparison with the opportunity-based theory.
Other Challenges
Marketing poses one of the major challenges in small and medium enterprises (Markman
et al 2016). Marketing efficiency determines the success of entrepreneurship. Competition from
the other market or large business is not easy. Lack of marketing experience can lead to the
failure of the business. The lack of skilled personnel for handling the specific issues of
machinery and voltage fluctuation is also an issue in the development of entrepreneurship. This

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also involves inefficiency of the leaders to guide the team in accordance with the standard theory
on leadership.
Challenges of Support Organization And Government
Support organization and government are the most important factors impacting the
development of entrepreneurship. On the other hand, challenges are more in this regard. These
challenges are official formalities, change in government policy, corruption and lack of source of
the network. Lack of networking with the support organization as well as government agencies
in real world often creates a problem in leading any business efficiently.
Development of Global Entrepreneurship
More than 400 million individuals in developing nations are owners of firms. The
development indicator of Global Entrepreneurship, Global Entrepreneurship Monitor data,
indicates that the nations with the low GPD are with entrepreneurship activities at a high level
awhile a high capital economy is with higher human sources and social capital attracted by
entrepreneurship for the supposed opportunities of money creation. (Acs et al, 2016). With the
globalization, the liberalization of transitional and emerging marketers and the integration of
business in the world economy and the Global Entrepreneurship have scored over the decades.
The past decade has indicated that the firms or business that expanded their business in the
global market has gained more than that of the domestic market. at present countries are
connected to the trade, gaining the advantage of decided exchange rate for export and import
with the highest profitability.

Global Entrepreneurship Theory Vs. Practice Gap: 8
Statics and Example for the Development of Global Entrepreneurship
Tesco Plc
Tesco a British company has developed its business in the different 11 nations including
Japan, China, Thailand, the Cruz Republic, and Poland. It is expecting the new stores' expansion
at approx.200. It has been researching the U.S market. Since 1960, Tesco has diversified into
several areas such as electronics, furniture, clothing, financial service internet service, and
telecom. The company too had faced challenges with regard to establishment of its business for
example, shortage of manpower, skilled labor as well as advancement in technical updates too.
In addition to this, it faced challenges in implementing organizational change due to lack of skills
and expertise to handle the work appropriately in line with the new strategies (Nwagbara, 2010).
Leadership challenges in the organization has created immense issues for the business
management to carry out business effectively in line with the market trends. Overcoming such
challenges had enabled the company to move ahead in its path to success.
Encantos de Puerto Rico
Encantos de Puerto Rico, established in the late 20th century, year1998 to produce as well
as market Puerto Rican premium coffee. It was when Angel Santiago, founder-CEO, seek fresh
market in the year 2002, he did not join the U.S. market, however instead he had selected Spain.
This is for the reason that he felt, Puerto Ricans as well as the Spaniards had comparable taste
about coffee and the ease of doing business in Spanish, which lowered the psychological
distance amid the 2 nations. When Encantos de Puerto Rico entered the US 2 years later, it
initially focused on Miami, having large population that mainly involved Hispanics (Isenberg,
2008).

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Conclusion
The field of global entrepreneurship is wealthy in opportunities and possibilities, and its
complete range is undefined. The paper shows that there are many opportunities in Global
Entrepreneurship but at the same time, it cannot be denied that there are challenges too. The
development of the Global Entrepreneurship has been a vital matter for the economics and
international market. The study demonstrates that while there are many possibilities, it is not
possible to ignore the difficulties of worldwide entrepreneurship. However, certain policies that
assist make worldwide entrepreneurship better for businessmen can overcome these difficulties.
To tackle the difficulties, general as well as market research should be conducted by worldwide
entrepreneurs to evaluate market demands and needs before joining the market. Global
entrepreneurship is therefore more advantageous and its possibilities obviously overlook its
difficulties.

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Global Entrepreneurship Theory Vs. Practice Gap: 11
References
Ács, Z. J., Szerb, L., & Autio, E. (2016). Global entrepreneurship and development index (p. 1).
Springer.
Acs, Z., Dana, L-P., & Jones, M. (2003). Toward new horizons: The internationalization of
entrepreneurship. Journal of International Entrepreneurship, 1: 5-12.
Chepurenko, A. (2015). Entrepreneurship theory: new challenges and future
prospects. Форсайт, 9(2 (eng)).
Forsgren, M. (2017). Theories of the multinational firm: A multidimensional creature in the
global economy. London: Edward Elgar Publishing.
Huggins, R., & Thompson, P. (2015). Entrepreneurship, innovation and regional growth: a
network theory. Small Business Economics, 45(1), 103-128.
Huggins, R., & Thompson, P. (2017). 11. A network theory of regional competitiveness:
innovation, entrepreneurship and growth. Handbook of regions and competitiveness:
Contemporary theories and perspectives on economic development, 245.
Isenberg, D. (2008). The Global Entrepreneur. Retrieved from, https://hbr.org/2008/12/the-
global-entrepreneur
Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago press.
Ács, Z. J.,