The development of the world with respect to science and technology has enhanced the standard of living of individuals. The advancement of the world has introduced globalization and liberalization thereby entrepreneurs from various regions of the world are establishing their business globally.
Global entrepreneurship actually defines the global leaders. They are the professionals who utilize their universal knowledge and the associations to recognize the cross-cultural and transnational opportunities in order to convert them into innovative initiative for value creation. Entrepreneurship refers to the launching of a new business and it is the opportunity of various leaders functioning globally and their efforts to go over the business innovations (Monitor 2014). The creation of value usually takes place in well-established organizations on a daily basis with the help of leaders who are following the chances within the context of the organization.
Additionally, the words global entrepreneurs identifies that organizations are not the only one to create new values but there are various non-profit entrepreneurs in the world who establishes values as well.
The theory of global entrepreneurship reveals that entrepreneurs spread their business away from their home country in order to increase their business globally. The entrepreneurs primarily establish their business in their home country and after their business is stable. The entrepreneurs try to establish their business in specific locations where the company can receive raw materials easily (Singer, Amoros and Arreola 2015). The entrepreneurs create new values by examining the new market and thereby understanding the culture of the region and commencing their business accordingly.
The current thinking regarding global entrepreneurship shows that people encourage global entrepreneurship as it leads to mixture of various cultures and ideas that will enhance the lifestyle of individuals. The entry of global entrepreneurship has led to the introduction of new business in the environment and thereby the production of new products and services. The human beings surviving in the economy encourage such changes as it boost up their lifestyle and with the establishment of new manufacturing firms, the cost of goods gets lowered thereby reducing the price of products. This has only been possible due to the advent of globalization (Hart et al. 2015).
The advent of global entrepreneurship has some positive and negative impacts as well. It is seen that global entrepreneurship mainly has positive sides. It is seen that the advent of global entrepreneurship has led increase in interaction that is useful for transfer of knowledge and idea that can be utilized for the generation of new product or services (Bergmann, Mueller and Schrettle 2015). The communication and interaction among various entrepreneurs lead to sharing of ideas thereby implementation of new plans and policies in the business environment that can lead to development of operational activity. As every aspect has a good and a bad side, global entrepreneurship has the same as well. Global entrepreneurship encourages interaction leading transfer of ideas and attainment of new products and services within the grasp of the consumers. It is seen that the negative ideas along with the adverse mindset are even spread (Lepoutre et al. 2013). The capture of a new market leads to the capture of new consumers and the entrepreneurs can undertake fraudulent activities as the consumers are unknown of the price and the quality of the product and service. Global entrepreneurship has an impact on the local manufacturers as the people will demand international quality at a lower price. Therefore, it is seen that global entrepreneurship has positive and negative impacts.
There are various issues that are associated with the method of global entrepreneurship. The process of global entrepreneurship involves the creation of new values by combining the cultures of various societies (Acs, Szerb and Autio 2016). However, global entrepreneurship has to face issues with respect to the accounting standards that are followed by various countries while evaluating their accounts and the methods for evaluation. There even exists a language barrier that leads to communication gap among the local investors, government and the global entrepreneurs. The gap in the communication leads to the lowering of relationship that may have an impact on the business of the entrepreneurs. Bosma (2013) even explains that variations in taxes in different countries lead to organizational difficulties and constraints with respect to taking loans and adjusting their profit from the business. The other issue that is related to global entrepreneurship is the risk related to foreign exchange rate. A huge differentiation in the currency rate between two different countries creates loss of money when the currency is exchanged from one place to another and thereby having an impact on the firm. Therefore, it is seen proper monitoring and supervision are undertaken by the firm in order to reduce the loss of money.
Monitor (2014) even explains that new companies that are launching in the new market may not have the proper infrastructure and that may lead to disseminated operations of the business. The difference in time between two countries is an issue for global entrepreneurship. The difference in culture and the political influence in a country have an effect on the functioning of global entrepreneurs and therefore, it is necessary handling the psychic at the lowest.
The analysis of the global entrepreneurship reveals that there are various helpful and harmful effects for the organization and the consumers as well. The advent of global entrepreneurship has led to the creation of new values within the organization that will be useful for the organization to make progress in future. Global entrepreneurship is useful for the establishment of new relations with the help of interactions that will lead to sharing of new ideas and values that can improve the operations of the business and regaining of new knowledge (Levie et al. 2014). Global entrepreneurship tries to mix the different cultures of various natures in order to create a new value that creates a sense of brotherhood and love among human beings of various nations. Global entrepreneurship leads to rise in profit and obtaining of new markets and consumers for the organization thereby increasing their market share and competitive advantage.
The harmful effect of global entrepreneurship means loss of capital and inefficient communication due to language barrier. The psychic problem becomes vital for global entrepreneurship as political policies and cultural differentiation affects the progress of a business (Minniti 2013). The taxation difference and the accounting standard used for the evaluation of financial statements are even different. Therefore, it can be said that the helpful factors are more effective than the harmful ones with respect to global entrepreneurship.
The best thing that can be done is to evaluate the economy and the culture where the entrepreneur wants to establish their business so that they have the exact idea about all the knowledge that is relevant for proper functioning of the business (Amorós, Bosma and Levie 2013). The entrepreneur can even monitor and supervise the proceedings of the business so that any loss related to exchange rate can be minimized. Counteractive measures with respect to all the issues that are observed by the entrepreneur can be undertaken so that better operations of the business can be observed.
This is the best way to move forward is to initiate all the counteractive actions so that all the restrictions and the limitations can be eliminated. Global entrepreneurship will improve the lifestyle of the common individuals and will even develop the economies. Thus global entrepreneurship with the help of the various measures will create new values that can upgrade the global economy (Bergmann, Mueller and Schrettle 2014). The idea of global entrepreneurship can be developed with the help of new values and transfer of knowledge and experience among different entrepreneurs when they interact that creates new ideas for the improvement of their business. Therefore, global entrepreneurship is ideally preferred in order to improve the global economy and the lifestyle of the human beings.
Reference List
Acs, Z.J., Szerb, L. and Autio, E., 2015. The global entrepreneurship and development index. In Global Entrepreneurship and Development Index 2014 (pp. 39-64). Springer International Publishing.
Acs, Z.J., Szerb, L. and Autio, E., 2016. The global entrepreneurship and development index. In Global Entrepreneurship and Development Index 2015 (pp. 11-31). Springer International Publishing.
Amorós, J.E., Bosma, N. and Levie, J., 2013. Ten years of Global Entrepreneurship Monitor: accomplishments and prospects. International Journal of Entrepreneurial Venturing, 5(2), pp.120-152.
Bergmann, H., Mueller, S. and Schrettle, T., 2014. The use of global entrepreneurship monitor data in academic research: A critical inventory and future potentials. International Journal of Entrepreneurial Venturing, 6(3), pp.242-276.
Bosma, N., 2013. The Global Entrepreneurship Monitor (GEM) and its impact on entrepreneurship research. Foundations and Trends® in Entrepreneurship, 9(2), pp.143-248.
Hart, M., Levie, J., Bonner, K. and Drews, C.C., 2015. Global Entrepreneurship Monitor United Kingdom 2014 Monitoring Report.
Lepoutre, J., Justo, R., Terjesen, S. and Bosma, N., 2013. Designing a global standardized methodology for measuring social entrepreneurship activity: the Global Entrepreneurship Monitor social entrepreneurship study. Small Business Economics, 40(3), pp.693-714.
Levie, J., Autio, E., Acs, Z. and Hart, M., 2014. Global entrepreneurship and institutions: an introduction. Small business economics, 42(3), pp.437-444.
Minniti, M., 2013. The Dynamics of Entrepreneurship: Evidence from Global Entrepreneurship Monitor Data. Oxford University Press.
Monitor, G.E., 2014. GEM 2013 global report. Global Report.
Monitor, G.E., 2014. Global Entrepreneurship Monitor: 2010 Global report.
Singer, S., Amoros, J.E. and Arreola, D.M., 2015. Global entrepreneurship monitor 2014 global report. Global Entrepreneurship Research Association, pp.1-116.
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