CHAPTER 9
GLOBAL
t
PENG
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Chapter 9 LEARNING OBJECTIVES
After studying this chapter, you should be able to:
1. Define entrepreneurship, entrepreneurs, and
entrepreneurial firms
2. Identify the institutions and resources that affect
entrepreneurship.
3. Identify three characteristics of a growing
entrepreneurial firm.
4. Describe how international strategies for entering
foreign markets are different from those for
staying in domestic markets.
5. Articulate what you should do to encourage
entrepreneurship on an international level.
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LO1: ENTREPRENEURSHIP
Terms to know
 Entrepreneurship
 Entrepreneurs
 International
entrepreneurship
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LO2: INSTITUTIONS THAT
AFFECT ENTREPRENEURSHIP
Formal institutions either help or hinder the
growth of new SMEs.
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LO2: RESOURCES AND
ENTREPRENEURSHIP
Entrepreneurial resources must be…




Valuable
Rare
Inimitable
Organized
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LO3: CHARACTERISTICS OF A
GROWING ENTREPRENEURIAL FIRM
 Growth
 Innovation
 Financing
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LO4: INTERNATIONALIZING THE
ENTREPRENEURIAL FIRM
MYTH: Only large MNEs do
business abroad; SMEs operate
domestically
Born global firms: start-ups that do
internationalbusiness from inception
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LO4: INTERNATIONAL STRATEGIES
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DEBATE: SLOW vs. RAPID
INTERNATIONALIZATION
SLOW: According to stage model, firms need to
enter culturally and institutionally close markets first,
accumulate overseas experience, then move to more
sophisticated strategies, such as FDI.
RAPID: Every industry has become global,
and entrepreneurial firms should go after
opportunities rapidly. Firms that internationalize
earlier do not face obstacles of domestic
orientation.
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LO5: ENCOURAGING
ENTREPRENEURISHIP ON AN
INTERNATIONAL LEVEL
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rights reserved.