Entrepreneurship

Entrepreneurship

Introduction

Businesses and entrepreneurship has been evolving since the beginning of times, but the current times have seen and drastic change in the methods of operating business as well as the scope of various businesses around the globe, thus causing an overall change in business environment. It should be noted that the increase in globalization has played an essential part in promoting the expansion of business, and now most of the business are going international, despite of their place and area of origin. Apart from globalization, a number of other factors have also played an essential part in promoting the same and close look at the business community highlights the fact that a large number of small businesses have been converted into international giants in the past few years. The following paragraphs would focus on the factors playing their part in the conversion and would also highlight the hurdles faced by these organizations in the process of transaction:

Forces driving small businesses in international markets

Keeping in view the increase number of international organizations and companies expanding to become multinational organizations, a large number of researches have been conducted to get detailed account of the driving forces acting behind the phenomenon. It is essential to note that there are a number of restraining forces working in the same environment and having same amplitude, but a clear balance has been maintained between the two and same as led to the situation where the international market is fast getting saturated. There are a number of external as well as internal variables causing the shift, with the major internal clauses being knowledge and workforce, while the major external clauses include the economy, competitors as well as technology, which are playing an essential role in determining the shape and structure of the international markets.

It is essential to note that the concept of the driving forces was basically developed by Benjamin Tregoe in 1970, at the time when he was planning the strategic intent of an organization. It is essential to note that driving forces have been defined as the primary detriments of the goods and services, which would be or would not be offered to the markets. With the passage of time, the nature as well as the firm of the driving forces has changed, and now these also include the threats and opportunities provided to the organization. The following paragraphs seek to highlight the most essential driving forces, which have been playing their part in forcing the small business in international markets:

Globalization

Globalization is the most essential and influential driving force behind the transfer of small business to international markets, mainly because of the large number of benefits offered by the process of expansion. As the world is getting converted in a global village, the boundaries and the differences of space and time are getting diluted, thus providing organizations with the opportunity to expand their business to other parts of the world. The advent of internet and technology has not only caused an immense increase in ...