Global EntrepreneurshipCulture & Economies

ESSAM 2010Professor Stephen LawrenceLeeds School of BusinessUniversity of Colorado at Boulder

Agenda

Types of global entrepreneurshipCharacteristics of global entrepreneursCharacteristics of global entrepreneurshipDifferences & similarities between global and domestic startup ventures

Types of Global Entrepreneurship

Factor-Driven Economies?Low levels of economic developmentOversupply of labor drives self-employment

Efficiency-Driven Economies?Industrialization and scale economiesDrives development of small-medium manufacturing firms

Innovation-Driven Economies?Research and knowledge-intensityDrives knowledge and innovation-based entrepreneurship

Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

Early-Stage Entrepreneurial Activity

Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

How Does Income Impact Eship?

Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

How Old are Entrepreneurs?

Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

What Gender are Entrepreneurs?

Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

How Does GDP Impact Eship?

Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

What Other Factors Effect Eship?

Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

Why Become an Entrepreneur?

Bosma, Acs, Autio, Coduras, & Levie (2009), “2008 executive summary,” Global Entrepreneurship Monitor, Global Entrepreneurship Research Consortium.

CHARACTERISTICS OF GLOBAL ENTREPRENEURSHIP

Karra & Phillips (2004), “Entrepreneurship goes global,” Ivey Business Journal, Nov/Dec.

What does “Born Global” Mean?

25% International sales within 3 yearsDerive competitive advantage from global resources and global markets

Plan for global sales and operations from inception

Karra & Phillips (2004), “Entrepreneurship goes global,” Ivey Business Journal, Nov/Dec.

What Factors Drive Global Eship Growth?

Globalizing marketsTariff & trade barriers; global brandsGrowing middle class

Changes in technologyInformation & transport technology

Changing nature of firms & alliances

Trade alliances (e.g., EU, NAFTA)Need for scale economies

Karra & Phillips (2004), “Entrepreneurship goes global,” Ivey Business Journal, Nov/Dec.

Success Factors for Global Eship?

Global visionNo boundary between domestic & global markets

Promiscuous collaborationManage complex collaborative networks

Cross-cultural competenceMultiple languagesMultiple cultural competencies

Karra & Phillips (2004), “Entrepreneurship goes global,” Ivey Business Journal, Nov/Dec.

HOW DIFFICULT IS STARTUP AROUND THE WORLD?

Doing Business, World Bank

www.DoingBusiness.org

Global “Ease of Business” Rankings

www.DoingBusiness.org

The Best and the Worst

“Global Heroes,” Economist, 2009

Days to Start a Business

“Global Heroes,” Economist, 2009

Regulation vs. Entrepreneurship

“Global Heroes,” Economist, 2009

VC Investments (% GDP-2007)

“Global Heroes,” Economist, 2009

HOW IMPORTANT IS CULTURE?

INTERNATIONAL VS. DOMESTIC NEW VENTURES – ARE THERE DIFFERENCES?

Int’l vs. Domestic New Ventures

McDougall, Oviatt, & Schrader (2003)

“A comparison of international and domestic new ventures,” Journal of International New Ventures 1, 59-82.

1. International team variables2. Global strategy variables3. Global industry variables

McDougall, Oviatt, & Schrader (2003), “A comparison of international and domestic new ventures,” Journal of International New Ventures 1, 59-82.

Entrepreneurial Team Variables

Important differentiatorInternational experience

Somewhat important differentiatorIndustry experience

Somewhat negative differentiatorMarketing experience

Important negative differentiatorTechnical experience

McDougall, Oviatt, & Schrader (2003), “A comparison of international and domestic new ventures,” Journal of International New Ventures 1, 59-82.

Global Strategy Variables

Important differentiatorEmphasis on quality

Somewhat important differentiators

Aggressiveness, product innovation, service, marketing, distribution

Irrelevant differentiatorsLow cost, focus

McDougall, Oviatt, & Schrader (2003), “A comparison of international and domestic new ventures,” Journal of International New Ventures 1, 59-82.

Industry Variables

Very important differentiatorGlobal integration

Somewhat negative differentiatorCompetitive intensity

Irrelevant differentiatorTechnology change

McDougall, Oviatt, & Schrader (2003), “A comparison of international and domestic new ventures,” Journal of International New Ventures 1, 59-82.

OTHER RESOURCES

Global Eship Monitor (GEM)

www.gemconsortium.org

International Entrepreneurship

www.InternationalEntrepreneurship.com