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THE GLOBAL

ENTREPRENEUR

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INTRODUCTION

For a century and more, companies have ventured abroad only after

establishing themselves at home.

A new breed of entrepreneur is thinking across borders.

Companies are being born global today. From buying raw materials from

nearby suppliers to manage operations from a business, companies hunt

for best locations because of political and social barriers.

Standing conventional theory on this head, start-ups now do business in

many countries before dominating their home market.

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KEY CHALLENGES START-UPS

FACE

DISTANCE

CONTEXT

RESOURCES

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DISTANCE

New ventures usually lack the infrastructure to cope

up with dispersed operations and faraway markets.

More physical distance create time difference. Which

can be remarkably tough to navigate.

Psychic distance- A greater challenge for global

entrepreneurs is bridging due to factors such as culture,

language, education systems, political systems, religion

etc.

It can heighten or reduce psychological barriers

between two regions and also prompt entrepreneurs to

make counterintuitive choices.

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CONTEXT

Nations political, regulatory, judicial, tax,

environmental and labor systems vary. The choices

entrepreneurs make about like where to locate their

companies head quarters will affect shareholderreturns and also their ability to raise capital.

Questions are raised whether to set up a company

where the taxes are low but the problematic legal

history or vice-versa.

Regardless of the complexity some global

entrepreneurs also deal with several countries

simultaneously.

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RESOURCES

Customers expect start-ups to possess the skills and

deliver the levels of quality that larger companies do.

Thats a tall order for resource-stretched new venture.

Still they have no option to do whatever it takes toretain the customer.

Many entrepreneurs have taken advantage of ethnic

networks to formulate and execute a global strategy.

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ALLIANCE BUILDING-

Start-ups can quickly reach by striking partnershipswith large companies headquartered in differentcountries.

However, most entrepreneurs have to enter into suchdeals from positions of weakness.

An established company has favourable conditions

interms of money, time and communications with globalpartners.

A start-up has few of these resources as their allianceshave to span geographic and psychic distance.

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HOW DIASPORA NETWORKS

HELP START-UPS GO GLOBAL

Many entrepreneurs have taken advantage of ethnic

networks to formulate and execute a global strategy.

Through diaspora networks, global entrepreneurs can

quickly gain access to information, funding, talent,

technology and contacts.

The most successful diaspora networks take following

four steps-

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1. MAP NETWORKS-

The members of a diaspora often cluster in residential

areas, public organizations, or industries.

2. IDENTIFY ORGANIZATIONS THAT CAN HELP-

Many countries have offices overseas that facilitate

trade and investment and they open their doors to

people visiting from home.

These organizations can provide the names of

influential individuals, companies, and informal groups

or clubs.

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3. TAP INFORMAL GROUPS-

Informal organizations of ethnic entrepreneurs and

executives are usually located in communities where

immigrant professionals are concentrated.

4. IDENTIFY THE INFLUENTIALS-

It can be tough to identify people who have standing

with local businesses and also within the diaspora

network.

A board member or coach that both respect is an

invaluable resource for a would-be entrepreneur.

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SUPPLY CHAIN CREATION

Entrepreneurs must choose suppliers on the other sideof the world and monitor them without havingmanagers nearby.

Supply chain find it daunting to manage complexsupply networks, but they gain competitive advantageby doing so.

In addition to raw materials and components, start-upsare increasingly buying intellectual property fromacross the world.

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CONCLUSION

Entrepreneurs shouldnt fear the fact that the world isnt flat. Being global

may not be pursuit for the fainthearted, but even start-ups can thrive by

using distance to gain competitive advantage.

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THANK YOU

SUBMITTED BY-

RAJAT NAGPALRoll number- 844