Chapter Nine Powerpoint Presentation

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<ul><li> 1. Chapter 9 Learning Objectives <ul><li>After studying this chapter, you should be able to: </li></ul></li></ul> <ul><li>Define entrepreneurship, entrepreneurs, and entrepreneurial firms</li></ul> <ul><li>Understand how institutions andsources affect entrepreneurship </li></ul> <ul><li>Identify the three characteristics of a growing entrepreneurial firm </li></ul> <ul><li>Differentiate international strategies that enter foreign markets and that stay in domestic markets </li></ul> <ul><li>Participate in three leading debates on growing and internationalizing the entrepreneurial firm </li></ul> <ul><li>Draw implications for action </li></ul> <p> 2. ENTREPRENEURSHIP AND ENTREPRENEURIAL FIRMS </p> <ul><li>small and medium-sized enterprises(SMEs)- generally defined in the US as firms with fewer than 500 employees </li></ul> <ul><li>entrepreneurshipidentification and exploitation of previously unexplored opportunities </li></ul> <ul><li>entrepreneurs - founders and owners of new businesses or managers of existing firms </li></ul> <ul><li>international entrepreneurship-combination of innovative, proactive, and risk seeking behavior that crosses national borders and is intended to create wealth in organizations </li></ul> <p> 3. GROWING THE ENTREPRENEURIAL FIRM </p> <ul><li>growth-an entrepreneurial firm can be viewed as an attempt to more fully utilize currently underutilized resources and capabilities </li></ul> <ul><li>innovation-heart of entrepreneurship and allows for a more sustainable basis for competitive advantage </li></ul> <ul><li>financing-start-ups need to raise capital; 4F sources of entrepreneurial financing: founders, family, and friends, andfools </li></ul> <ul><li>microfinance - lending institutions provide tiny loans($50$300) to entrepreneurs in developing countriesthat would lift them out of poverty </li></ul> <p> 4. INTERNATIONALIZING THE ENTREPRENEURIAL FIRM </p> <ul><li>There is a myth based on historicalstereotypes that only large MNEs dobusiness abroad and that SMEs mostlyoperate domestically </li></ul> <ul><li>Transaction costs may seem so high thatmany firms may choose not to pursueinternational opportunities </li></ul> <ul><li>Someborn globalstart-ups attempt todo business abroad from inception </li></ul> <ul><li>Many venture investors look for a globalview in candidate organizations </li></ul> <p> 5. 6. International Strategies for Staying in Domestic Markets </p> <ul><li>indirect exports -SMEs reach overseas customers by exporting through domestic-based export intermediaries </li></ul> <ul><li>export intermediaries-perform an important </li></ul> <ul><li> middleman function by linking sellers and buyers overseas that otherwise would not have been connected: export trading companies (ETCs), export management companies (EMCs) </li></ul> <p> 7. </p>