Global entrepreneurship is easier than ever with the many advances that have been made. Countries are moving closer to each other than ever before. Entrepreneurs are now operating on a global level rather than a local level. This has improved the economy of both their resident countries and the world.
Entrepreneurship in Old Times
In times gone by, there were many barriers that prevented small and medium-sized businesses from efficiently trading internationally. The biggest problem was it was costly and very time consuming transporting goods to another country. This is why most entrepreneurs preferred to trade locally.
In this day and age however, the internet, relaxed international policies and the demand for foreign goods have removed many barriers that once existed. This allows for global ventures to be set up. You can send cargo overseas quite inexpensively – removing the once old transport barrier.
Aims and Purpose of Entrepreneurship
The primary aims of global entrepreneurship include:
- Promote importing and exporting – As one country imports products, another country benefits. As a country exports products, that country benefits. Global entrepreneurs rely on the import and export of their goods in order to make a profit
- Making opportunities on a global scale possible – The internet has allowed a person in Australia trade with some other person in America. The global audience increases the chance of an entrepreneur selling his/her products/services and also for more.
- To promote international trading – When entrepreneurs trade on an international level, they usually earn money in a foreign currency. This can prove to be a better business idea than local trading.
- Promote entrepreneurs to create business in another country – Hundreds of governments have created policies that award and promote entrepreneurs from foreign countries to start their business in their country. This tactic is beneficial for both the entrepreneur and the country he/she sets their business up in.
- Expanding a current business on a global scale – Entrepreneurs may have started a venture on a local level but it may be expanding. In such cases, instead of setting up another branch locally, try expanding on an international scale or create a website.
In this day and age, always an entrepreneur should always set their sights on the global economy rather than the local economy.
Before you look at the benefits of global entrepreneurship, the primary question that needs to be asked relates to why entrepreneurs are going global. There may be a high local market but entrepreneurs prefer to deal on an international level.
What you have to Consider
Look at the things you own and see how many of the items were made locally – you probably don’t own many local products. This is because a country needs to trade with others in order to survive. Times have changed and we are now the global economy has dominated local ones.
Global entrepreneurs look at selling items to the residents of another country primarily due to the exchange rate. Earning in a stronger currency is a smart move and it makes sense. Not only is a foreign currency a worthy investment, it equates to more money locally which can be extremely beneficial.
The Various Entrepreneurs
There are generally two kinds of global entrepreneurs. One that imports cheap products and sells it for a higher price locally and one that exports cheap items and sells it for more internationally. Both entrepreneurs stand to make a lot of money and is one of the most common reasons for starting a global entrepreneurial venture.
The simplest way to reach a global market is to use the internet. E-commerce has quite literally exploded on the internet and millions of people buy and sell items online every day. Many times this is to someone in another country. This is the most common form of global entrepreneurship.
Entrepreneurs sell products and/or services online (on e-commerce sites) where it is available to the rest of the world. Although a good bulk of the initial business will be local, the venture will slowly move from primarily local to international in time.
These businesses typically fair better because they offer prices better than the local market. This is possible because there is no lease to pay, not staff to hire and a huge reduction in operating costs.
However, a global venture is not an easy business to start or maintain. A lot of time has to be spent in the research and development stage. Either venture types need to look both the local and international market where trading has to take place.
The Global Market
If you look at various statistics, the global market is at least four times bigger than the entire United States market. It makes sense to start a global venture. Not only do you reach a larger audience, you trade in a market that is already booming. However, this only makes the competition that much harder.
There may be many advantages of being a global entrepreneur but there are risks involved. These risks separate successful ventures from failures. If you are currently a global entrepreneur, you will know how hard it is to sell your items on the global market.
You need to be different and you need to think differently. More importantly, your products and/or services need to stand out. If you can manage that, the world, is quite literally yours. Global entrepreneurs need to concentrate on four areas. These include quality, price, uniqueness and cultural savvy.
- Many products may be available on the global market, however, it is the quality of your goods and/or services that will help generate sales
- Price is also crucial to a good venture. If a high quality good is offered at an affordable and competitive price, people will buy it
- Your products/services also need to be unique. If a product is unique, more people will buy it. If it is an existing product being offered at the same price but with modifications, it is more likely to succeed than the original product
- Global entrepreneurs also need to be aware of the cultural trends in their trading country. It is not smart to sell provocative clothes in a conservative country; no matter how well they sell in your country. Try selling products that are not in the local market of the other country. Something very useful and wanted by many people but cannot be made cheaply – the ideal venture for a global entrepreneur.
Being a global entrepreneur is no easy task but it is not an impossible task either. At the end of the day, it is your efforts and skills that will either make or break your global entrepreneurship ventures. Before becoming such an entrepreneur ensure that you have all your information in order and that you are ready to compete with the world.