IMS CH 9

small/medium sized enterprise

a firm with fewer than 500 employees in the US or fewer than 250 employees in the EU

entrepreneurship

the identification and exploitation of previously unexplored opportunities

entrepreneur

the founder/owner of a new business or a manager of an existing firm, who identifies and exploits new opportunities.

international entrepreneurship

a combination of innovative, proactive, and risk-seeking behavior that crosses national borders and is intended to create wealth in organizations

social entrepreneurship

innovative, proactive, and risk seeking entrepreneurial behavior that endeavors to meet social goals that benefit people and the society

business model

a firm’s way of doing business and creating and capturing value

pivot

being adaptive and flexible in a creative revision process to reach entrepreneurial goals

gig economy

finding short-term online or onsite service jobs (such as diving, translations, or babysitting)

sharing economy

making available to others part of one’s own goods and services (such as renting out a room in one’s apartment)

top 5 countries w the highest percentage of adults involved in gig and sharing economy

south korea, israel, chile, ireland, US

venture capitalist

an investor who provides risk capital for early-stage ventures

microfinance

a practice to provide micro loans (50-300) used to start small businesses with the intention of ultimately lifting the entrepreneurs out of poverty

crowdfunding

efforts by entrepreneurial individuals and groups to fund their ventures by drawing on relatively small contributions from a large number of individuals without standard financial intermediaries

born global firm (international new venture)

a start up firm that attempts to do business abroad

SMEs can enter foreign markets thru:

direct exports, licensing/franchising, foreign direct investments

direct export

the sale of products made by firms in their home country to customers in oher countries from inception

letter of credit

a financial contract that states that the importer’s bank will pay a specific sum of money to the exporter upon delivery of the merchandise

licensing

Firm A’s agreement to give Firm B the rights to use A’s proprietary assets for a royalty fee paid to A by B, typically used in manufacturing industries

Franchising

Firm A’s agreement to give Firm B the rights to use A’s proprietary assets for a royalty fee aid for A by B, typically done in service industries

Indirect exports

a way to reach overseas customers by exporting through domestic-based export intermediaries

export intermediary

a firm that performs an important middleman function by linking domestic sellers and foreign buyers that otherwise

serial entrepreneur

an entrepreneur who starts, grows, and sells several businesses throughout their career

stage models

models of internationalization that portray the slow, stage by stage process an SME must go through to internationalize its business