Executive Summary
Entrepreneurs have changed the business environment by venturing into the global market unlike in the past when firms entered new markets ones they have established a stable footing in their home market. Currently, companies are sourcing for products and parts from external suppliers or even look for the best location to establish their operations (Isenberg, 2008). Similarly, such entrepreneurs are now seeking the best talent and potential investors from the international market. Such firms are also learning to manage their operations from a different location. According to the article, companies enter into outside markets for defensive purposes and to take offense.
Start-ups venturing into the global market are exposed to various challenges. According to the author, such firms are faced by three distinct problems that include distance, context, and resources. Entrepreneurs do not have the infrastructure needed for the global market. They face time difference due to physical distance and psychic distance from issues like culture, educational system, language, political system and economic development (Isenberg, 2008). Context relates to issues like legislative, regulatory, environmental, tax and labor and judicial. Resources include skill, capital and technological.
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Global entrepreneurs need to enhance their competencies to address the above competencies. They should identify the available opportunities, obtain the necessary resources and strike deals and possess soft skill. Entrepreneurs must have the following competencies; articulate a global purpose, alliance building, and supply chain creation. According to the article, successful global entrepreneurs map networks, identify organizations that can help, tap informal groups and identify the influential. Entrepreneurs cope with the challenges of global operation differently, and some have succeeded in establishing strong enterprises that span various countries (Isenberg, 2008). However, managing start-ups in the global environment can be an uphill task that needs tack and the ability to adapt to a new environment.
Critical Issues in the Reading
The article addresses the changing landscape of global entrepreneurs who have decided to venture into the international market without dominating their domestic market as previously observed in established global companies. The writer identifies the approaches that companies are using to enter into new markets including worldwide sourcing and securing new operations in countries with a friendly business environment. Similarly, entrepreneurs are seeking talent from global markets while managing their actions from a distance (Isenberg, 2008). The author identifies some companies and entrepreneurs who have taken advantage of the recent changes in the global arena to set their bases in countries that favor their operational activities. Similarly, some of the companies have obtained strategic partners who have contributed to their success in the market.
Another critical issue in the reading is the challenges faced by entrepreneurs who enter new markets. The author identifies some of the problems that global entrepreneurs encounter in their quest to venture into new markets. Despite the flattening of the world, enterprises that try to enter into new markets must be aware of the difficulties that they are likely to encounter in their effort to establish their operations in a foreign country.
The current reading also identifies the competencies that global entrepreneurs must develop to address the identified issues. The author points out the management style that such an individual must possess to succeed in the global environment. The success of a business in the international market can be attributed to its ability to offer unique products and establishing strong relationships in the host country (Isenberg, 2008). Similarly, an understanding of the market and taking calculated moves can significantly enhance the success of an enterprise. Such capabilities are achieved if an entrepreneur develops a responsive business that adapts to the changing environment.
The three issues identified above are critical because they determine the success of an enterprise in the global market. Similarly, they help in the determination of appropriate goals and strategies that support a business overcome the issues faced in its operations. The challenges create awareness of what an entrepreneur should expect in the international market while the competencies give them an insight into what they should possess to overcome the identified problems. The three, therefore, forms the basis for future entrepreneurship in the global front and how managers must adapt to the changing market.
Lessons Learnt
The current reading has three significant lessons for the learner. One is that entrepreneurs should establish opportunities in different markets and not only in the home country. Doing so ensures that enterprises can compete with established firms to take advantage of the various markets that offer an opportunity for growth. A second lesson is that despite the challenges experienced by entrepreneurs in the global market, entrepreneurs can still venture and succeed in the international markets as long as they develop the competencies required in such markets. The third lesson from the reading is that entrepreneurs must be equipped with the appropriate management skills that enhance their ability to manage distant operations while engaging other key players to ensure the success of the company.
Best Practices
Entrepreneurs are venturing into the international market with the aim of taking advantage of the opportunities presented by such markets. They are determined to serve a wider market with a broad selection of products and services that meet the needs of the consumers. Entrepreneurs are also forming strategic alliances that help them serve new markets that are distant from their home countries. Similarly, the entrepreneurs seek resources in the international market to meet their production and sales targets. Lastly, entrepreneurs are developing their competencies on managing distant operations and understanding the dynamics of each market segment to come up with solutions that address some of the issues in the global market.
Reference
Isenberg, D. (2008). The Global Entrepreneur: A new breed of entrepreneur is thinking across borders – from day one. hbr.org
