International entrepreneurship is necessary in the environment of domestic businesses and for their improvement. In order to improve the internal conditions, we need currency and business development outside the national borders. For this purpose, we must have a correct and appropriate understanding of the existing conditions and knowledge of the necessary international elements to establish reasonable and logical communication between them.
International Business Process
With the advancements in technology and the study of international cultures and cultural overlaps, the field was prepared for domestic businesses to enter foreign markets. As a result of the confrontation between domestic and international businesses, business owners who were looking for foreign competitive advantages started international entrepreneurship. At the beginning of this, this category was noticed and welcomed by small businesses.
According to the studies, two groups of businesses and companies have more potential to enter international markets:
1. Businesses founded by older people. Due to having resources, effective communication, sufficient information, management capabilities, these people have the conditions to enter the international space.
2. Companies whose institutions have sufficient knowledge in a specific industry.
International Entrepreneurship Approaches
1. Resource-Oriented Approach
In entrepreneurship research, the first issue that is investigated is related to capacities, assets and economic units. These factors can indicate the growing trend and success rate of a company. In this regard, understanding the nature and manner of economic activities at the international level brings the possibility of obtaining and maintaining competitive advantages and increasing economic benefits.
2. Network Approach
The second factor that is investigated in international entrepreneurship research is the impact of networks in the development of economic activities in the international space. This approach refers to the fact that by using the resources, knowledge and experience of other companies, we can accelerate the process of entering the international market. Personal and inter-organizational relationships significantly contribute to the growth of economic activities. The network approach is very practical and reliable; Because both formal and informal networks can be effective in solving resource limitations.
3. Opportunity-Oriented Approach
In this approach, we examine the role of opportunity in international entrepreneurship and achieve a better understanding of the impact of entrepreneurship in the international environment. It can be said that in the process of internationalization, the role and impact of opportunity has not been taken into account. In fact, we are facing neglect of this important factor. Examining and considering the opportunities gives the entrepreneur this overview that he can make the best use of the existing conditions by considering the international opportunities.
The Effect of Environmental Factors on International Entrepreneurship
The effects of environmental factors on business growth in the international arena can be positive or negative. Among these factors, we can mention competition, government policies, growth opportunities and saturation of the domestic market.
The meaning of competition in this concept is competition between domestic and international markets. The activity in the domestic markets continues until the development costs in these markets are lower than the development costs of the international market. When we face the saturation of domestic markets, this factor will be the driving force for the internationalization of companies.
Up To Sum
Today, the business environment is no longer limited to domestic markets. Rather, business owners want to develop their business at the international level by expanding their scope of activity. Benefiting from international entrepreneurship has a very important and positive role in the development and prominence of businesses at the international level. For this purpose, we need to understand the concept of entrepreneurship, identify opportunities and the process of internationalization and how to use them. In the process of research and investigation of this issue, we are faced with 3 important approaches, which are the resource-oriented approach, the network approach, and the opportunity-oriented approach.