Report on International Entrepreneurship, Born Global, New Ventures

This report examines the internationalization of small and medium enterprises (SMEs), focusing on born global firms and international new ventures. It explores how businesses adapt to global opportunities, emphasizing effective growth and development strategies. The literature review introduces key concepts like international entrepreneurship, highlighting the importance of innovation, effective workforces, and technological advancements for SMEs. The main body delves into the aspects of growth and demand within international SMEs, analyzing innovation, workforce dynamics, and technology's role. It also outlines the characteristics of born global and international new ventures, including leveraging new technologies, managing limited resources, utilizing external intermediaries, and emphasizing superior product quality. The report provides a comprehensive overview of the challenges and opportunities in international entrepreneurship, offering valuable insights into the strategies and characteristics that drive success in the global market.

INTERNATIONAL
ENTREPRENEURSHIP, BORN GLOBAL
AND INTERNATIONAL NEW VENTURES

ABSTRACT
The study examines internationalization of small and medium enterprises that are
adopting new ongoing process to meet various opportunities which are available in the working
environment. Effective growth and development tactics are adopted in order to carry out various
business activities. With the globalization of firms, small and medium enterprises are required to
adopt innovative aspects in order to specifically provide superior quality of products and services
and to compete with the existing ventures. Various strategies will be adopted to start up and
establish new venture in the new market. This will support to step into international market with
the adoption of different tactics.

LITERATURE REVIEW
INTRODUCTION
It has been foreseen that both the small and medium enterprises are carrying out the
various business activities in order to grow within the international boundaries (Crick, 2009).
According to Rodríguez and Nieto, (2015)= with the proper adoption of growth and development
perspective, it has been noticed that small and medium enterprises are expanding a cross the
global market. As per the viewpoint of Moen, et.al., (2015)= international entrepreneurship is
related with the growth and development of new venture into the international market.
Krishnaswamy, et.al. (2015)= states that Small and medium enterprise focus on the process in
order to grow and develop within the boundaries of international market for the purpose to
expand their business and sustain in the competitive market.
According to Altinay and et.al., (2015)= Internationalization of the small and medium
enterprise is the ongoing process which is adopted by the businesses to operate within the
international boundaries. Similarly, it is the process which brings innovation into the entire
function of small and medium enterprise for the purpose to grow and develop (Nolan and
Garavan, 2016). Love and Roper, (2015)= states that these aspects help the new venture to be
more hi-tech and informative to carry out the various operations which are associated with the
growth and development of small and medium enterprise internationally. Nevertheless, this
aspect is leading with the small enterprise to born as a new venture within the international
markets (Sandhu, Hussain and Matlay, 2015).
With the viewpoint of Nolan and Garavan, (2016)= born global firms can be defined as
those business organizations which are originated or traced importantly to meet the competitive
advantage with the effective use of resources and the sale of finished outputs in different
countries. Further, With reference to Wright and et.al., (2015)= it can be stated that these
business units pursue their business operations to become global from the day of their
establishment. These business organizations are facilitated with the external forces that help in
the entire operations of enterprises (Arranz and Arroyabe, 2016). For instance: FedEx is a born
global organization which organizes the operations related international shipment.
Swoboda and Olejnik, (2016)= state that small and medium size enterprises are those
establishments which operate over the small scale for the purpose to involve them in
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manufacturing process and sustain for the longer duration. Likewise, small and medium
enterprises take initiative to enter into the market which is new for them in order to acquire the
knowledge about the market condition in order to grow in the international market (Paswan and
Rajamma, 2016). Similarly, small and medium enterprises can be defined as the businesses
which operate with the few number of personnel to carry out various operations which are
associated with their working patterns (Ibrahim, Abdullah and Ismail, 2016).
As per the viewpoint of Whittaker, et.al., (2016)= it has seen that technological
development and globalization are taking place for the business enterprises to carry out their
operations internationally. This is leading to the introduction of new venture in the global market
for the purpose to expand its offering criteria. Clarke, et.al. (2016)= states that through
technological advancement, small and medium enterprises identify the sufficient place to make
the offering of its product and services into an entirely new market which is available
internationally.
MAIN BODY
According to Volchek, et.al., (2013)= internationalization of small and medium
enterprises is related to the aspect which is associated with the growth and development of these
industries into the global market to be advantageous in order to lead into the marketplace.
Likewise, O'Cass and Sok, (2013)= states that with the help of specialized resources, customized
products and services are offered for satisfying the market demand. Along with this, a new place
is provided to the venture to establish their business into the new market. Further, Brouthers,
et.al., (2015)= claimed that expanding enterprises into the international market helps the small
and medium enterprises for doing business globally with the new market demand.
Theme 1: Aspects of growth and demand in the international small and medium enterprises
In accordance with Sleuwaegen and Onkelinx, (2014)= there are various aspects which
are associated with the growth and development of small and medium enterprises within the
international boundaries for the purpose to expand their market share and make the offering
internationally. According to Hessels and Parker, (2013)= In order to compete with the firms
available within the international boundaries, small and medium enterprises deal with all the
aspects related with the growth and development of them. Nummela, et.al., (2005)= argued that
internationalisation of the small and medium enterprise help businesses to explore the vast
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market in respect to the global context. It is the process which is adopted by these enterprises to
introduce their products and services into the new market through which they are able to grow
and develop into the international market. This will help the new ventures to broaden their
performance area and make extensive growth in the market which has various opportunities.
With reference to Beck, et.al., (2005)= growth and development is linked with the
process that is carried out for the entire functioning and sustainability of the organization in order
to meet the various changes with the establishment into the global place. Crick, (2009)= claimed
that there are various aspects which are associated with the growth and development of small and
medium enterprises as these are very essential for them to operate into the international market.
1.1 Innovation: Innovation is an essential aspect which helps business unit to grow and
expand as per the market requirements. According to the viewpoint of Rodríguez and Nieto,
(2015)= innovation helps the small and medium enterprises to mobilize their working to meet up
with the new trends that are flourishing into the market. As per the Rodríguez and Nieto, (2015)=
innovation is the aspect which is significantly associated with the development of small and
medium enterprises to customize their working to offer certain new product and services in the
international market. On the other hand, Moen, et.al., (2015)= argued that company needs to
focus on various factors which will help it to enhance their potential in order to perform
innovative operations in the international market. This will help to provide the new growth
perspective to the ventures.
1.2 Effective workforce: According to Krishnaswamy, et.al., (2015)= effective
workforce helps the small and medium enterprises to manage the entire working by engaging the
right workforce to accomplish the target to make the entry into the new market. Effective
workforce helps the enterprises to forecast and budget the entire working in a proper manner and
develop the effective system to manage the entire working. On the contrary, Swoboda and
Olejnik, (2016)= stated that if the workforce is not dynamic the organization will fail to make the
entry into the international market for the purpose of expansion. All activities of the workforce
should be defined before hand to make entry so that small and medium enterprises would not
face any failure (Rodríguez and Nieto, 2015). This will also lead organizations to employ
effective manpower to handle and carry out the entire operations.
1.3 Technological advancement: As per the viewpoint of Nolan and Garavan, (2016)=
technology is the aspect which helps the business to grow over the larger perspective.
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Technology advancement is the key aspect which is beneficial for the small and medium
enterprises to grow and develop within the international boundaries. Swoboda and Olejnik,
(2016)= stated that with prober adoption of the new technology and proper research the business
units can bring change into the global market which makes the working of the people more easy
and convenient.
All these elements will help the new and small enterprise to adopt proper growth and
development perspective that will help the small and medium enterprise to be more innovative.
Theme 2: Characteristics of born global and international new ventures
According to Altinay and et.al, (2015)= born global those establishments which has the
capacity to compete with the international enterprises in order to grow and develop with its
operations. Various activities are coordinated in a proper form across the countries to satisfy the
customer need into the global niche market. As per the view points of Arranz and Arroyabe,
(2016)= the internationalization of the new ventures and born global firms has become the
distributive phenomenon which is adopted by the enterprises to satisfy the need of the customers
of the global market. The born global firms help the new ventures to develop the various
characteristics to design their business in order to grow and develop in the international market.
2.1 Leveraging of the new technology: As per the Wright and et.al, (2015)= the new
ventures and the born global firms leverage the new technology in order to serve the highly
specified need of the customers which are present in the market. With reference to the Rodríguez
and Nieto, (2015)= the new technology allow the small and medium enterprises to process the
information with the help of technology into the narrow global- market niches and serve the
customers in a significant manner. In accordance with Nolan and Garavan, (2016)= new
technology helps the small and medium enterprise to develop the effective relationship within
the global market to carry out the operations.
2.2 Limited financial and tangible resources: In accordance with Swoboda and
Olejnik, (2016 )= the small and medium enterprises have the limited resources in order to carry
out the various operations in an effective manner. As per the view point of Nolan and Garavan,
(2016)= the foreign market is considered as the dominant market for the small and medium
enterprises to make the investment and carry out the trade practises to manage the entire
operations for the growth and development. According to Nolan and Garavan, (2016)= as the
financial and the tangible resources are limited in number while the small and medium
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enterprises are expanding into the global market for the purpose to trade with the other countries.
It can be states that limited financial and tangible resources will provide the margin to the small
and medium enterprise to plan up their operations with the effective use of the resources.
2.3 Using external, independent intermediaries for the distribution into the foreign
market: Subrahmanya and Mathirajan, (2015)= states that many small and medium enterprises
which are entering the foreign market are new ventures which expand with the export of the
product and services. With the engagement into the international market, the resources and
intermediaries are leveraged in to the foreign market. As per the view point of Nolan and
Garavan, (2016)= distribution onto the foreign market enables flexibility to the small and
medium enterprises to adopt the various strategies to carry out the various operations which are
related to the operations. According to Heggeseth and Lome, (2015)= using external,
independent intermediaries for the distribution into the foreign market will help the small and
medium enterprise to grow and develop.
2.4 Emphasis on superior quality of product and services: As per the view point of
Hussain and Matlay, (2015)= the foreign market is very proactive and aggressive as innovation is
essential aspect which help the small and medium enterprises to develop the business to meet the
product as per the category which is specified by the customers of the market. All the enterprise
has the superior quality of the product and services which are offered by them in order to meet
the requirement of the customers. Rodríguez and Nieto, (2015)= states that small and medium
enterprise meet the specific requirement of the customers by offering the high quality of the
product which is designed in order to make the offering more competitive and meet the demand.
Subrahmanya and Mathirajan, (2015)= claimed that through this the growth and development of
the enterprises are ensured over the larger perspective.
Theme 3: Strategies for the growth and development of the small and medium enterprises in
the international market
Small and medium can grow in international market by adding the more features in the
products or services which are offered by them. In the global market business enterprise can
survive only when they offer something unique or different to their customers (Arranz and
Arroyabe, 2016). In the dynamic business environment company needs to make innovation in
their product or services. Through this, organization is able to differentiate their product with the
product which already exists in the international market. However, it is to be critically evaluated
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by Wright, et.al., (2015)= that when company make efforts to develop new product in against to
their competitors then it has to incur high financial cost on research. Due to this, company is
unable to sell its product or services at reasonable price.
Subrahmanya and Mathirajan, (2015)= argued that small and medium business organization can
attain success in the overseas market by acquiring the already established firm of the global
market. It is the most effectual strategy which provides assistance to small business firm in
making entry in international market. Moreover, customers prefer to purchase product or services
from the corporation which is well known to them. Thus, by purchasing small organization
company can easily expand their business operations and functions in the global market.
This statement is contradicted by Altinay and et.al., (2015)= who stated that acquisition
strategy of global expansion is highly risky. Moreover, acquisition strategy increases the
administration burden of company. In addition to this, acquired firm may also affect the brand
image of the existing firm or its product. Along with it, if company fails to make analysis of the
goodwill of international firm which small business wishes to buy then it place negative
influence of growth and development aspect of the firm.
Hussain and Matlay, (2015)= claimed that enterprise can also attain desired level of outcome by
offering the product or services at very reasonable prices in an international market. Moreover,
when small and medium business enterprises offer product or services at international level then
they enjoy economies of scale. It provides opportunity to the firm to offer their products in
international market at very cost effective rates as compared to their competitors. As per the view
point of Arranz and Arroyabe, (2016)= small business firm can build and sustain competitive
advantage by fulfilling the needs, wants and desire of the international customers. Business
organization can achieve success in international market by conducting research and
development activity. It helps firm in identifying gap between the existing product or services
offered and actual needs of the customer base. Through this, company is able to offer the product
to their customers in accordance with their expectations. By this, small business firm can develop
its business in international market more successfully.
In accordance with the view point of Sandhu,et.al. (2015)= corporation can attain growth
only when they make through analysis of the international market in which they wants to enter.
In order to survive in the strategic business area it is vital for the organization to make
assessment of the political, economic, social as well as legal framework of the international
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market. Through this, business enterprise can easily assess the viability of their product or
services which they wants to launch in the global market. Moreover, growth and development of
the firm is highly affected by the economical and political stability of the market. Thus, business
entity needs to make assessment of all these factors before entering in the international market.
However, it is to be critically evaluated by Arranz and Arroyabe, (2016)= that company has to
hire skilled and efficient personnel which help them in making effectual analysis of the target
market. This aspect also imposes financial burden in front of the firm.
Thus, enterprises will be able to adopt the strategies which are beneficial for the growth
and development of small and medium enterprise in the international market.
Themes 4: Reasons for getting globalized and management of it
According to Swoboda and Olejnik, (2016)= here are ample amount of reasons which
are associated in order to globalize the entire working of the small and the medium enterprise.
This will help the business to manage the entire operations in an effective manner so that the
resources are used properly. In accordance with Arranz and Arroyabe, (2016)= the entire
operations are managed in a proper manner to enter in the global market for the purpose to grow
and develop over the larger perspective in order to meet the demand of the customer into the
global market niches.
Swoboda and Olejnik, (2016)= states that small and medium enterprise through
globalization expand their market share to carry out the operation with the help of the resources
which is acquired by them to meet the demand of the customer present into the global market
and serve them accordingly. As per the Hussain and Matlay, (2015)= globalization will help the
small and medium enterprises to be more innovative with the help of the new aspects that are
adopted by them to serve into the international market as per the demand of the customers that
are specific in nature.
With reference to Altinay and et.al., (2015)= the international market is very large for the
small and medium size organization to carry out the entire process so that they significantly meet
the demand of the customer with the proper management of the resources which are required to
carry out the operations. In accordance with Swoboda and Olejnik, (2016)= through
globalization the small and medium enterprises are able to make major contribution in the
economic development of the country in order to raise the standard of the operations that are
carried out in the foreign market.
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As per the view point of Rodríguez and Nieto, (2015)= as the government provide the
specific policies in order to carry out the various operations within the international market. As
the policies defined are very lenient for the new venture to make the establishment to grow and
develop (Altinay and et.al, 2015). These policies help the business unit to make the proper
allocation of the work so that the major innovation is done with the help of the various
operations.
With the adoption of proper plan and tactics, growth and development of small and
medium enterprises will be effective as the strategies will help to make an efficient flow of
various activities which are associated with the internationalization of new ventures.
CONCLUSION
From the above report, it has been concluded that small sized business enterprises can
expand their business operation by entering in international market. Merger, acquisition, product
expansion and diversification etc. are the most effectual tool which helps organization in getting
success at international level. Besides this, it can be inferred that medium business enterprises
wants to serve the customers of international market to strengthen their economy. It is one of the
main causes which compel organization to enter in international market. It can be articulated
government also provides financial assistance to SME's when they transact or exchange their
goods or services at the global level.
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REFERENCES
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