Is your business ready for international expansion: Understanding Global Entrepreneurship
Entrepreneurship is the process of discovering new ways of combining resources. Successful entrepreneurs aim to expand the size of the economic pie across the globe. With the rise of globalisation, global entrepreneurship has also become a well-known word. It is necessary to understand the many challenges and opportunities that come along the way for global entrepreneurship.
Thinking to go global?
According to a recent Global Readiness Survey of 362 executives, only 10% of companies think that they have the full complement of capabilities required to win overseas, with most barely mastering the basics. The company's worries are to focus more on their ability to actually get things done overseas. Companies must not just think but should get it right by tackling it from many angles. They need to embark on a transformation that combines the right strategy and better execution.
Understanding culture and language
It’s a wrong assumption that if your product or service works in the US, it’ll work anywhere in the world. The strategy needs to tailor sales and promotional efforts to fit each new foreign market. And, in terms of language, staff will need to field customer service calls from overseas countries. The language barrier can be resolved by navigating communication over the phone as well as in emails.
Evaluate to Execute
Having an instinct that the product or service will thrive in a new country doesn't mean it actually will. Companies should evaluate whether or not expansion is indeed beneficial, or if it will only take away from their core business. Take a look at finances and question if the company has the funds to support the , initial investment and sustain the growth forecasted.
Will the product impress international customers?
First, make sure customers exist. If yes, then one of the biggest considerations has to be whether your business can actually build a strong customer base internationally. A product that sells well in your home country may not have the same appeal in international target markets. Also, it may be better to serve one country well than several countries poorly.
Global entrepreneurship has many opportunities but the challenges cannot be ignored. But, to lead the company smoothly, both market research and general researchers assessing the requirements and needs of the market before entering is a must.