Entrepreneurial firms

5 important questions on Entrepreneurial firms

Define Entrepreneurship, Entrepreneurs and Entrepreneurial Firms

Entrepreneurship: The identification and exploitation of previously unexplored opportunities.

Entrepreneurs: Founders and owners of new businesses

International Entrepreneurship: A combination of innovative, proactive, and risk seeking behavior that crosses national borders and is intended to create wealth in organizations.

Understand the institutions that affect entrepreneurship

Formal institutions influence entrpreneurship.
Informal institutions: Low-uncertainty avoidance individualistic societies foster entrepreneurship

How do resource capabilities influence entrepreneurship?

VRIO
Entrepreneurial resources must create value
Resources must be rare, inimitable and organizationally embedded.
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Name three characteristics of a growing firm

  1. Growth: Underdogs go for the crumbs. Can still grow even without financial capital
  2. Innovation: Ability to constantly innovate gives a competitive advantage
  3.  Financing: Ability to raise capital (4F: Founders, Family, Friends, Fools)

Differentiate international strategies that enter foreign markets and that stay in domestic markets

Foreign: Direct exports, Franchising/Licensing, FDI
Domestic: Indirect exports, Supplier of foreign firms, Franchisee/Licensee of foreign brands, Alliance partner of FDI

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