International Entrepreneurship & Innovation

This set of flashcards covers key concepts, definitions, and terminologies related to international entrepreneurship and innovation.

Cultural Intelligence (CQ)

An individual's ability to adapt, understand, and act effectively in diverse cultural contexts.

International Entrepreneurship

The discovery, enactment, evaluation, and exploitation of opportunities across national borders.

Born Global

A venture that aims to serve global markets from its inception.

Gradual Internationalizer

A firm that expands internationally at a slower pace, often using planned strategies.

Incubator

An organization that supports early-stage startups with resources, mentorship, and networking.

Accelerator

A structured program designed to rapidly grow startups, typically over a short-term period.

Angel Investor

A wealthy individual who provides capital to early-stage startups, often in exchange for equity.

Venture Capital

Funds managed by professional investors aiming to invest in young companies with high growth potential.

Minimum Viable Product (MVP)

A functional product released to test business assumptions with real users.

Prototype

An early model of a product used to test and demonstrate ideas before full production.

Incremental Innovation

Small, continuous improvements made to existing products or processes.

Disruptive Innovation

Innovations that create new markets or significantly change existing industries.

Revolutionary Innovation

Fundamental changes combining radical shifts in technology and mindset.

Blue Ocean Strategy

A business approach focused on creating uncontested market spaces, making competition irrelevant.

Creative Destruction

The process by which new innovations disrupt existing markets and lead to economic growth.

Big Bang Disruption

A form of disruptive innovation that rapidly transforms industries with better and cheaper solutions.

Reverse Innovation

Innovations developed in emerging markets and later introduced to developed markets.

Cognition in Entrepreneurship

The mental processes involved in recognizing opportunities and solving problems.

Emotional Intelligence

The ability to manage emotions and remain motivated during entrepreneurial challenges.

Resilience

The capacity to recover quickly from difficulties and setbacks in business.

Strategic Thinking

The ability to navigate uncertainty with a forward-looking vision in business.

Teamwork in International Ventures

Collaborating effectively within global teams to leverage diverse perspectives.

Cultural Adaptation

Adjusting communication styles and behaviors to respect and fit different cultural norms.

Funding Stages

The various phases of securing capital for startup growth and development.

Opportunities in Entrepreneurship

Situations where individuals can create new goods or services based on market demands.

International Markets

Regions beyond a company’s domestic market where it aims to operate.

Global Competencies

Skills and abilities required to operate successfully in international contexts.

Entrepreneurial Mindset

The attitudes and behaviors that drive entrepreneurs to pursue new ventures.

Innovation Ecosystem

The network of organizations and institutions that support innovation and entrepreneurship.

Funding Evolution

The progression of funding sources a startup engages with as it matures.

Peer-to-Peer Lending

A method of financing whereby individuals lend to each other without traditional financial institutions.

Crowdfunding

Raising small amounts of money from many people, typically via online platforms.

Business Model

A plan for how a company creates, delivers, and captures value.

Export-Import Bank (EXIM)

A U.S. government agency that provides financing to support American exports.

Life Cycle of Startups

The stages of development a startup undergoes from inception to maturity.

Market Evaluation

The process of assessing the viability and potential of a market for a product or service.

Resource Allocation

Distributing available resources efficiently to maximize performance.

Prototype Testing

The process of validating an early version of a product before full-scale production.

Market Entry Strategy

The plan for entering new markets and overcoming barriers to success.

Internationalization

The process of increasing involvement and activities in international markets.

Risk-Taking

The willingness to take chances in business to pursue opportunities.

Causal Strategies

Planned approaches to international expansion often used by gradual internationalizers.

Effectual Strategies

Opportunistic approaches taken by early internationalizers for market entry.

Networking in Entrepreneurship

Building relationships and connections that can support business objectives.

Feedback Loop

A process of continuous learning and improvement based on customer or market responses.

Innovation as Value Creation

The process of introducing new ideas to solve problems and improve business outcomes.

Economic Impact of Entrepreneurship

The contribution of new ventures to job creation and economic growth.

Operational Scaling

The process of increasing operations to meet growing demand.

Sustained Competitive Advantage

The ongoing ability to outperform competitors in the marketplace.

Entrepreneur

An individual who discovers, evaluates, and exploits opportunities to create new goods or services, characterized by innovative, proactive, and risk-seeking behavior.

International Entrepreneur

An individual who engages in entrepreneurial activities across national borders, utilizing innovation and risk-seeking behavior oriented toward international markets.

Components of Cultural Intelligence (CQ)

1. Metacognitive CQ: Mental ability to acquire cultural knowledge. 2. Cognitive CQ: Knowledge of cultural similarities and differences. 3. Motivational CQ: Interest and confidence in intercultural situations. 4. Behavioral CQ: Ability to adapt behavior in intercultural interactions.

Interpersonal Communication Competence

A mix of relational skills, cultural sensitivity, motivation, and an ethical mindset that supports effective networking and relationship-building.

Change Catalyst

The ability of an entrepreneur to drive and manage change effectively within dynamic and uncertain environments.

International Business Knowledge

Understanding global markets, international trade practices, and the cross-border regulations necessary for operating in foreign territories.

Managerial Skills in International Entrepreneurship

Competence in business planning, financial management, and resource integration specifically for international operations.

Self-confidence (Entrepreneurship)

An individual’s internal belief in their own abilities to successfully perform entrepreneurial tasks and overcome business obstacles.

Cognitive Aspect (Entrepreneurial Mindset)

The mental process where entrepreneurs think creatively, recognize market opportunities, and solve complex problems.

Behavioral Aspect (Entrepreneurial Mindset)

The tendency to be proactive, take initiative, and act decisively to pursue opportunities and implement business solutions.

Emotional Aspect (Entrepreneurial Mindset)

The ability to manage emotions such as fear and uncertainty while maintaining motivation and resilience in the face of setbacks.

Domestic Entrepreneurial Path

1. Forming intentions and ideas. 2. Opportunity screening and validation. 3. Transitioning from nascent to active. 4. Acquiring resources and capabilities. 5. Launching and managing. 6. Growth and scaling. 7. Reflection and iteration.

Internationalization Path of a Venture

1. Opportunity recognition and motivation. 2. Market research and selection. 3. Entry strategy development. 4. Resource acquisition and capability building. 5. Implementation. 6. Learning, adaptation, and scaling.

Scope of Internationalization

The number and diversity of foreign markets a venture serves; it can be Narrow (limited markets/regions) or Broad (wide range of markets/cultures).

Extent of Internationalization

The proportion of a venture’s total sales or operations conducted internationally, categorized as either Low Extent or High Extent.

Equity Financing

Raising capital by selling shares of ownership to investors; it provides access to expertise and capital without an obligation to repay funds.

Debt Financing

Funding provided via loans that a borrower must repay over a defined period, usually with interest, and often secured by collateral.

Grant

A sum of money provided for a specific purpose (like innovation or development) that does not require repayment.

Initial Public Offering (IPO)

The process where a private company offers its shares to the public for the first time on a stock exchange.

Pre-Seed vs. Seed Capital

Pre-seed: Earliest stage focused on reducing uncertainty and forming teams. Seed: Early-stage financing for product development and market research.

Series A Funding

Investment used to transform a Minimum Viable Product (MVP) into a scalable business, expanding the customer base and market reach.

Series B Funding

Investment focused on scaling a company further after it has demonstrated success, involving production increases and entering new markets.

Collateral

An asset of value pledged by a borrower to a lender as security; if the borrower defaults, the lender can seize and sell the asset.

Alpha Testing

Internal testing conducted by the development team to find and fix major bugs before the product is exposed to external users.

Beta Testing

Releasing a product to a select group of external users or partners to gather real-world feedback and validate market fit.

International Business Plan Sections

1. Opportunity and Market Analysis. 2. Business Model and Strategy. 3. Operational and Organizational Planning. 4. Financial Planning.

Diffusion of Innovations Theory

A theory developed by Everett Rogers explaining how, why, and at what rate new ideas and technologies spread through a social system.

Adopter Categories (Rogers)

The five groups into which a population is divided based on innovation adoption: 1. Innovators. 2. Early Adopters.