Many entrepreneurs enter the global market for a variety of reasons. Why is it important for entrepreneurs to learn to think globally? What are the advantages and disadvantages of entrepreneurial ventures to move into the global marketplace? What must entrepreneurs consider when entering the global market?
From the research a global entrepreneur is an individual, entity, or organization that seeks out and conducts new and innovative business activities outside of their home borders. These activities could be virtual, fiscal, the acquisition of additional ventures and properties, of others. On the home page of The Global Entrepreneur Institute it is stated that we are living in a world where all major business functions in the value chain are “highly globalized and deeply integrated”. It is projected that by 2027 80 % of the world’s gross domestic product will be sold across international borders and multinational business activity will grow from today’s approximately $5 trillion to $70 trillion. (www.blog.gcase.org) This is good enough reason for any entrepreneur to begin to think globally, but it takes more than that to actually be successful at going global.
The benefits to global typically favor the smaller enterprise’s over large, and can be looked at in several areas: the orientation of the strategic, financial, and production activities and goals. Strategically it allows us to enhance domestic competiveness, increase global brand building and market capability, as well as capitalizing on the growth potential of new and undiscovered markets. Financially it allows us to uncover new markets that find new customers which will serve to increase profits and sales. In becoming more visible and increase the potential number of investors, as well as capitalize on tax benefits. Production related strategies include cutting costs through global outsourcing and guaranteeing the supply of raw materials. Going global allows us improve the purchasing power for those customers buying locally and may extend the lifecycle for our current products and/or services.
Some of the cautions: If you are going to go global you must first have a clear understanding of the culture. Most of us live within a little 60 mile radius and know nothing of the differences in our own cultures that exist the United States, much less that of other countries. When we go global we must have a way to communicate verbally and in written form many different languages. There may be travel involved, and that will take time and expenditures. Not everything can be done virtually. In order to learn more sign up to The Global Entrepreneur Institute. They have some great info as well as free courses.
Global Entrepreneur (2013) The Global Entrepreneurship Institute. Retrieved on 11/27/13 from http://www.blog.gcase.org.