+ 44 20 8144 3706Abstract:
Internationalization happened at a rapid pace in the past few years. Due to formation of varied blocks like ASEAN, NAFTA etc globalization takes place at a fast pace. This creates new opportunities for the entrepreneurs in the international market. By expanding in the international market entrepreneurs can lower down HR and production cost in their business. Moreover, they can earn more revenue by capitalizing opportunities that are in the foreign market. At the same time it is a challenging task for them to understand foreign nation, culture, peoples’ preference and complex regulatory system. All these sections are covered in the report.
Introduction:
In the past few years, internationalization happened at a rapid pace. The world is moving towards globalization. In the present research study, rapid internationalization is explained from point of entrepreneurs in terms of the benefits they are receiving from business expansion in the international market. Challenges that entrepreneurs face while expanding or after expanding business in the international market is also explained in detail (Cavusgil, and Knight, 2015). In this way, entire research work is carried out.
Body Content:
Internationalization is happening at rapid rate due to globalization. The entire world is now converted into the global village where economic conditions of the multiple nations integrated with each other. Many economic blocks are developed now days like ASEAN, NAFTA, BRICS, OPEC, OIC etc. By forming these organizations, nations are creating opportunity for the business firms originate on their own land in the international market (Bouncken, Muench, and Kraus, 2015). It can be said that lots of opportunities are created for the entrepreneurs in the international market.
According to Knight, and Liesch, 2016 there are a number of benefits for the entrepreneurs in the international market. Due to rapid internationalization now domestic firms come in more contact with the international firms and people that live in the foreign nation. Often business firms directly did not do business with each other, especially those firms that are SME. Usually, it happened that any specific businessman has contact with two firm owners and it conduct meeting between them. Then two firms that join in different nations hands with each other. Means that two firms that are SME and operate in different nations did not usually directly trust each other. Through any intermediary they come in contact with each other that they both know (Martin, and Javalgi, 2016). Thus, rapid internationalization promotes contact between domestic and international businessman and due to this reason business expansion opportunities are also created for those domestic firms that are operating in their nation only. The owners of these domestic firms by using local contact can easily do business with the firm that is operating in other nation of the world. Thus, rapid internationalization is creating business expansion opportunities for the entrepreneurs.
As per views of Autio, 2017 entrepreneurs are highly risk taker in nature. By taking risks they open business, but it becomes always is a hard task for them to earn ample profit in the business. HR cost covers 30% of the company revenue and due to this reason it becomes very important for the firms to control costs in the business. In order to control HR cost entrepreneurs can expand their business in the foreign market. In the foreign market themselves can get skilled labor at cheaper cost. This lead to earning of more profit in the business.
Conclusion:
On the basis of the above discussion, it is concluded that rapid internationalization is benefiting entrepreneurs in the foreign market. Due to rapid internationalization domestic and international firms and businessman comes in contact with each other. Such kind of things creates opportunities for the entrepreneurs that wish to expand in international markets, but are confined to the domestic market. Expansion in international market creates opportunity for the firms in terms of lower cost of production, HR and lower supply chain cost, more demand of the product, etc. However, understanding foreign market people culture, preference and complex rules and regulations create challenges for the entrepreneurs. Moreover, managing business operations in foreign market are also challenging task for the entrepreneurs.
Reference:
Books and Journals:
Autio, E. 2017. Strategic entrepreneurial internationalization: A normative framework. Strategic Entrepreneurship Journal. 11(3). 211-227.
Bouncken, R. B., Muench, M.. and Kraus, S. 2015. Born globals: Investigating the influence of their business models on rapid internationalization. International Business & Economics Research Journal. 14(2). 247-256.
Cavusgil, S. T.. and Knight, G. 2015. The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies. 46(1). 3-16.
Crick, J. M., Crick, D.. and Chaudhry, S. 2020. Entrepreneurial marketing decision-making in rapidly internationalising and de-internationalising start-up firms. Journal of Business Research. 113. 158-167.
Etemad, H. 2017. Towards a conceptual multilayered framework of international entrepreneurship. Journal of International Entrepreneurship. 15(3). 229-238.
Felzensztein, C. and et.al., 2015. Networks, entrepreneurial orientation, and internationalization scope: evidence from Chilean small and medium enterprises. Journal of Small Business Management, 53(sup1). 145-160.
Hsieh, L. and et.al., 2019. A multidimensional perspective of SME internationalization speed: The influence of entrepreneurial characteristics. International Business Review. 28(2). 268-283.
Kahiya, E. T. 2020. Context in international business: Entrepreneurial internationalization from a distant small open economy. International Business Review. 29(1). 101621.
Knight, G. A.. and Liesch, P. W. 2016. Internationalization: From incremental to born global. Journal of World Business. 51(1). 93-102.
Martin, S. L.. and Javalgi, R. R. G. 2016. Entrepreneurial orientation, marketing capabilities and performance: the moderating role of competitive intensity on Latin American International new ventures. Journal of Business Research. 69(6). 2040-2051.
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