BMG936 International Entrepreneurship Assignment Sample
CW1: CASE STUDY ON INTERNATIONAL ENTREPRENEURSHIP
Introduction (BMG936 international entrepreneurship)
International entrepreneurship of Dr Johann Seigert
International entrepreneur is someone who is willing to open their business outside of their country of origin. There are countries that have imposed some positive laws on international entrepreneurs in order to integrate foreign trade and integrate economic development as a whole. International entrepreneurship is a combination of innovative and risk-seeking behaviour that crosses national borders and reaches an international stage thus bringing value to an organization. These international entrepreneurs are pioneers of the business world as they help to bring value to the economy and business world.
These international entrepreneurs look after new opportunities and use them to bring innovation thus bringing value to the business world. In this scenario, it can be seen that Dr Johann Seigert who was a German soldier and a surgeon back in 1800 came up with an innovative idea that changed the business world. His unique idea of coming up with a tonic that helps in healing stomach problems. This unique and innovative business idea brought him fame and led his venture Angostura ventures to be expanded in other parts of the world as well because of its effective innovative product. Hence, he is a prime example to define and explain evolution in international entrepreneurship and ideas that help in leading to a successful international entrepreneurship.
His venture name is Angostura bitters and he named his venture after the city of Angostura situated in Venezuela. This particular venture is able to expand its arms in other parts of globe as well because of its innovative products that is introduced by Dr Johann Seigert. At that time of 1800 there was no such tonic pr medicine that helps in easing down stomach pain and discomfort. This innovative idea of coming up with such a new tonic that eases down stomach pain helps this venture to achieve success and get that opportunity to spread itself in other parts of the globe as well.
An international entrepreneur before coming up with an idea needs a source of motivation or cause that influences that entrepreneur to come up with an innovative and new idea (Zahra, 2021). Big entrepreneurs around this globe have been able to come up with such innovative ideas because they also got that source of influence or motivation that moved them to come up with a solution. In this scenario, as well it can be seen that a venture named as Angostura bitters is a business that used to supply tonics that has medicinal impact and helps in easing down any kind of stomach issues (Baier-Fuentes et al. 2019). Dr Johann Seigert back in 1800 also got his point of motivation for coming up with such an innovative product. At that time, Dr Johann Seigert used to serve as a surgeon and he used to see his patients suffering from some serious stomach issues that had no cure. This particular prior experience acted as a point of influence and this influence pushed him to come up with an innovative idea of introducing tonic (Reuber et al. 2018). He made that particular medicine after consulting with local Amerindians; he gained sufficient knowledge from them and started to carry out experiments until he finally came up with his invention of tonic. This tonic was effective in nature it became famous outside of the military ward as well for which doctor started to expand his venture globally. Thus, this particular experience acted as a point of motivation for him that pushed him to come up with such innovative ideas (Jafari-Sadeghi et al. 2019).
Trait theories to IE
Entrepreneurs are never born, they are made, as a person becomes an entrepreneur when some incident influences that person and it triggers that person’s mind to come up with new innovative products. In this case as well it can be seen that the Doctor was influenced based on his previous experience.
Trait theory of entrepreneurship – According to this theory it can be seen that an entrepreneur is a pioneer, leader and captain of a firm. Thus, an entrepreneur in order to be successful needs to have or possess certain traits of characteristics (Wach and Głodowska, 2021). Those characteristics include creativity, self-confidence, imagination, perseverance and risk taking. In this scenario, as well it can be seen that doctor became influenced by an incident and came up with such an innovative idea. In this case the doctor has all these characteristics traits. He was creative; he took the risk to0 come up with constant experiments to make his idea successful (Steinbrink et al. 2020). Thus these were some traits that were found in Dr Johann Seigert and these traits made him into a successful entrepreneur.
Effectuation theories to IE
According to Srasvasthy’s effectuation theory, it is stated that an entrepreneur describes an approach of making decisions and performing action in the entrepreneurship process. Here entrepreneurs look after the next best step by assessing resources that are available in order to achieve goals and continuously balance goals with resources available (Prashantham et al. 2019). In case of this Angostura bitter, it can be seen that two sons of Dr Johann Siegert came up with certain entrepreneurship ideas where they keep contact with royal kings in England to integrate their business. Moreover, through communication they came up with a decision where they perform the action of making their bitter bottles distinctive in nature so that it becomes a unique identity for their brand (Karami et al. 2020).
Lessons that I learned from here is that in order to become an entrepreneur it is important to have exciting and innovative ideas and thoughts. As influenced by Matalamäki (2017), apart from that it is also important to have some personality traits of being an entrepreneur according to trait theory. However, according to effectuation theory it is important to have proper communication and make effective decisions so that goals can be achieved by creating a unique brand identity for my venture (Qazi et al. 2020).
Part B-Themes Family and (International) entrepreneurship
Entrepreneurship requires several skills and knowledge to develop an enterprise in the markets and incur significant returns from their business. In this present case study, the original entrepreneur of Angostura Bitters, Dr. Johann Siegert with his entrepreneurial skills in management has been discussed in detail. Development of a family business internationally requires alertness, as has been ideated by Kirzner (Szerb et al. 2019).
One of the major features of family entrepreneurship is relying on known ones for funds. As stated by Ali and Ahamat (2018), the major issue faced by family entrepreneurs is lack of capital and financial assistance from banks or other financial institutions. Therefore, from the provided scenario, it can be witnessed that sons of Dr. Siegert took over the business of their father when he grew older and thus, this entails one of the key features of a family entrepreneur. They took financial aid from their father owing to which they moved to the UK owing to political instability in the country. Moreover, as inspired by Bolzani and Der Foo (2018), in order to market “Angostura bitters” as well, they received financial aid from financial capability gained by their father during his entrepreneurship.
Another major theme witnessed in the provided scenario is presence of a clear goal and vision. In the opinion of Discua Cruz, Hamilton and Jack (2021), family firms usually have a clear vision of their business as the business usually runs in families, and therefore, all the members are well dedicated towards accomplishing goals and objectives of the concerned business. In the provided scenario, the business objective of Dr. Siegert was to provide qualitative “Angostura bitters” to the people and thus, the transfer of similar goals to his sons could be witnessed when they took effective measures to market the concerned product. Additionally, as influenced by Tabares et al. (2021), they also moved to various parts and regions across Europe consequently which they shared responsibilities for production of one bottle. Therefore, this helped in sharing of responsibilities and risks of business because of which, there were better opportunities to achieve business objectives.
The chief debate over family business is hostile takeover of family businesses, which could not be witnessed in previous scenarios as well. As influenced by Feranita, Kotlar and De Massis (2017), the transfer of business from Dr. Siegert to his sons was not a culmination of hostility; instead, they were dedicated towards achieving business objectives and success. Thus, they strived hard to promote the product in every corner of the UK and other European countries. On the other hand, as supported by Marlow and Martinez Dy (2018), another major debate concerning family entrepreneurship is unequal distribution of power and responsibilities. However, the provided scenario has not displayed adequate instances of unequal distribution of powers and responsibilities owing to which the sons of Dr. Siegert have taken equal responsibilities over the family business including its promotion and sharing of risks as well.
Based on analysis in the provided scenario, it can be witnessed that entrepreneurship of Dr. Siegert has been hugely appropriate and displays a lesser number of business issues and risks. His sons have successfully taken over business responsibilities and there is no unethical approach or unequal distribution of power. The entrepreneurial qualities of Dr. Siegert shall contribute to the competitive advantage of the concerned firm.
CW2: International Entrepreneurship and economic development
A Person who likes to undertake risks of starting something new in a business venture can be termed as an entrepreneur. An entrepreneur creates a firm in order to give shape to their idea of business, which can be popularly defined as entrepreneurship that needs capital and labour in order to produce and deliver goods and services properly. International entrepreneurship is something, which entrepreneurs thought about after covering all areas of their own country. When an entrepreneur thinks of expanding their business on an international platform and gaining more profit from these international fields then it is termed as international entrepreneurship. In this assignment, a thorough discussion would be done to forecast various information and data related to international entrepreneurship and the way it is contributing to the economic development of a country.
International entrepreneurship theories
Theories related to entrepreneurship helps in creating a better and effective overview about entrepreneurship on an international platform.
Figure 1: International business factors (Source: Author)
Economic theory is considered as one of the most important theories related to entrepreneurship. According to this theory, it asserts a fact that both economy and entrepreneurship are closely related to each other and both of them are linked together (Becker et al. 2017). Theory states that an entrepreneurship can only work properly when its economic conditions are favourable. Thus, when the economy is not favourable it becomes difficult for any entrepreneur to grow properly. In case of international entrepreneurship as well when an entrepreneur wants to expand business globally it is important to look after the economy of that respective country as based on the economic condition of that country an entrepreneur would be able to expand its business appropriately (Marwala and Hurwitz, 2017). It is also stated that an entrepreneur is able to find motivation in the presence of economic incentives, good industrial policy, proper financial and resource sources and an appropriate taxation policy. Thus, when an entrepreneur would like to become an international entrepreneur by flourishing its business globally then implementing this theory would help them to analyse these factors. If these factors come out as positive factors then it would motivate that entrepreneur to carry out its business properly (Breton, 2017). Thus, this theory would help an entrepreneur to emerge as a proper international entrepreneur by satisfying economic factors of development.
This particular theory is also another Contemporary theory of entrepreneurship and it states that success of an entrepreneur is dependent upon social cultures of a particular place (Ritzer and Stepnisky, 2017). An entrepreneur would be able to achieve proper growth in a good social setting. Hence, when an entrepreneur would be expanding its business globally in order to become an international entrepreneur then this social part or social culture would affect growth of that entrepreneur. This theory further states that social aspects that are included in social cultures are social values, customs, religious beliefs, taboos, and other cultural activities (Alatas and Sinha, 2017). Thus, it is important to look into these social aspects before flourishing the business of an entrepreneur. An entrepreneur needs to respect these social values of international society where the entrepreneur wants to expand its business and maintain decorum so that it is able to grow in that international market. This would also contribute to make sufficient development in economy as well.
An international entrepreneur through Implementation of this theory needs to understand these specific social aspects and conform to these social expectations in order to carry out their business. According to (Luhmann et al. 2017) understanding of these social aspects helps in integrating an entrepreneur’s business value in an international platform. It would further help to implement measures that would help to satisfy these social factors and satisfying these factors would help to integrate economic development of that venture as well. It is because satisfaction of social factors means an increased amount of profits in a venture that ultimately contributes to the economic development of that international entrepreneur (Morales et al. 2019). It further helps an international entrepreneur to implement strategies and measures to uplift their business and add value to its international entrepreneurship.
Image 1: Sociolocial theory of international entrepreneurship (Source: Jager, 2017)
Psychological theory can also be considered as an important entrepreneurship theory as it helps in promoting essential growth of an entrepreneur. According to this theory, it is stated that an entrepreneur goes through phases of growth when the society has several individuals and they have their necessary psychological characteristics Jager, 2017). These individuals’ characteristics include having a vision and being able to face opposition and having that need to achieve a higher position. An entrepreneur before entering an external international market and expanding its business needs to implement this theory to get an idea about psychological characteristics that individuals of the society have (Norboevich, 2020). Based on those characteristics an entrepreneur would be able to set a vision and achieve a higher position in the international market. Setting vision and higher position would help in stimulating economic growth, as these high visions would help in bringing profits to an organisation.
An entrepreneur would only be able to achieve this thing when they have that trait or capability to excel, they are self-reliant and there is low father dominance. According to Cassidy et al. (2020), implementing this theory by an entrepreneur in this international market would help to expand its business on an international platform. Psychological theory would further help an entrepreneur to understand psychological aspects of consumers in an international platform so that an entrepreneur is able to implement measures to integrate its ventures’ value and add value to its international entrepreneurship. According to Jones et al. (2019), implementing measures to satisfy consumers’ needs would satisfy consumer preferences that would ultimately contribute to economic development of that international entrepreneur by integrating profit of its venture or business.
According to this theory, it is stated that in order to uplift a venture successfully it is important to understand various cultural and social contexts and examine them as they play a part in uplifting a business successfully (Chevallard, 2019). Thus, an entrepreneur needs to look after this theory in order to understand social and cultural content before entering an international platform and uplifting their business on that platform. Understanding these cultural aspects helps in bringing profits to a venture that further brings economic development in international entrepreneurship. This theory is further based on the cultural entrepreneurship model. This model explains that a new venture can be created by influence of one’s culture. Cultural practises lead to creation of entrepreneurship attitudes that include innovation and lead to venture creation attitudes (Moberg, 2018).
Thus for an entrepreneur it is important to implement this theory in order to learn about cultural practises of an international platform and to uplift entrepreneurship attitudes and learn about innovation before entering an international platform. As influenced by Muralidharan and Pathak (2017), learning about these specific cultural practises of an international platform would help an entrepreneur to sharpen its entrepreneur skills. Not only that it would also further help to integrate revenue of international entrepreneurs as understanding of cultural practises and implementing innovation would bring profit to its venture thus helping in economic development. According to Kaplan (2017), sharpening of entrepreneurship skills helps in integrating value as an international entrepreneur by making its business grow in that international platform. It also further helps an entrepreneur to learn about various innovative measures that help in establishing a better venture in international platforms and increase its economic development. It further adds value to international entrepreneurship.
Opportunity based theory
According to this theory, it is stated that an entrepreneur grabs opportunities in order to integrate its business value. Understanding the right opportunity and grabbing it for its own business is important as it helps in uplifting growth of that entrepreneur’s business and it further helps in necessary economic development as well (Noble and Mazzei, 2018). In international business platforms, as well it is important for an entrepreneur to grab the right opportunity in an international business platform so that it is able to uplift its business properly in this international market and make economic development. These opportunities mainly include changes in economy, technology, changes occurring in society or culture. According to Lum and Morrish (2019), it is seen that along with these changes consumers also start to change their preferences as well. In the case of international entrepreneurship, it is important for that entrepreneur to thoroughly study the changes that are occurring in that international market. An international entrepreneur needs to go through those changes and implement necessary measures to expand its venture and bring necessary economic development in its business. As influenced by Glinkowska-Krauze, Chebotarov and Chebotarov (2020), culture also impacts this opportunity of the business in markets. Thus according to this theory it is stated that an entrepreneur needs to take those changes as a form of opportunities and implement measures so that it is able to succeed in an international business platform (Rahman and Lesmana, 2018). It also states that these opportunities further help in uplifting the economy of that venture or organisation. Technological changes help an entrepreneur to become innovative thus technological changes need to be looked after. Innovative measures means it would bring sufficient profit to an organisation thus spurring economic development. Hence, it can be seen that implementing this theory would help an entrepreneur to know its chances or opportunities in an international market and enforce them in order to expand its international entrepreneurship and economy (Spinuzzi, 2017).
Resource based theory
According to this theory, it is suggested that an entrepreneur needs to have resources in order to carry out their business in an appropriate manner (Gao et al. 2018). Thus, an entrepreneur willing to open their business in international platforms and need to have their required resources to carry out their business successfully and make necessary changes (Zhao and Fan, 2018). Failing to get access to their required resources would cost them and would hamper their business in international business platforms. Resources that are needed by an entrepreneur to successfully carry out business include time, money and labour. Thus, an entrepreneur willing to open their business in an international platform and become an international entrepreneur needs to have proper access to these resources to uplift their business and expand their economy as an international entrepreneur in a global platform (Alvarez and Barney, 2017). Hence, implementation of this theory would help an entrepreneur to know their required resources and implement them to make them into a successful international entrepreneur. Having required resources would help an entrepreneur to also bring effective development in its economy thus adding revenue to its business.
Impact of entrepreneurship on economic development
Entrepreneurs have a huge impact on economic development because an economic development of a particular business takes place properly when the entrepreneur of that venture is able to implement necessary strategies to integrate economic development (Dvouletý, 2017). Entrepreneurs help in spurring economic development through their good business tactics and effective strategies. An entrepreneur implementing necessary strategies to integrate its business growth or profit would ultimately contribute to that business economic growth and would also promote growth of the economy of that respective country as well (Neumann, (2021). . New services, new products that are launched by an entrepreneur can bring necessary changes in an economy and can help in spurring economic development. It is because consumers love to try new products and purchasing those new products would help in uplifting revenue thus bringing economic development. Thus new products have a cascading impact as they stimulate same business sectors as well thus as a whole bring economic development (Farouq and Dadwal, 2019). Thus, entrepreneurs help in bringing new wealth, which ultimately adds value to economic development.
Challenges to developing international entrepreneurship
While setting up a business in some international platform some entrepreneurs face some significant challenges (Sadeghi et al. 2019). One prime challenge faced by an entrepreneur is setting up a proper international company structure that would help in carrying out the business properly. Another major challenge that is faced by international entrepreneurs is foreign laws and regulations (Elo et al. 2018). These laws sometimes enforce some unnecessary restrictions on an international entrepreneur. High amounts of currency rate sometimes pose a challenge in setting up cost calculation and setting up of global pricing strategy. Another challenge that is faced by an international entrepreneur is choosing the right shipment method to export materials (Zahra, 2021).
Hence, it can be noted that an international entrepreneur needs to implement certain theories of entrepreneurship before entering an international platform. It further concludes a fact that every theory indicates some changes in the international platform that international entrepreneurs need to take into account to succeed as an international entrepreneur. These theories also help in uplifting economic development and there are some challenges that can impose some restrictions on international entrepreneurship.
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