Chapter 3

Entrepreneurial Opportunities

How to spat an opportunity?

 Market Needs
 Location
 Hobby
 Available Materials
 Interest

Ways of Going into Business

New Business
 Existing product to a new market
 New Product in an existing market
 Launching an improved product

Business Acquisition
 Eliminates uncertainties faced by new business
 Already has an established name
 Relationship with customers and suppliers exist

Family Business
 Early exposure to the business
 Capital is not an issue

Franchise Acquisition
 Already has an established name
 Standard trainings, advertising and supplies

Environmental Scanning

SWOT ANALYSIS

International Entrepreneurship
- Is the process of an entrepreneur conducting business activities across national
boundaries
How does the company go Global?

 Exporting – selling products to other countries (outward flow of goods)

Indirect Exporting – means you appoint third parties, like agents or distributors, to

represent your company and your products abroad.

Direct Exporting - means direct sales to a customer abroad. You send your invoice directly
to the customer. You maintain close contacts with your customers and undertake your own
marketing and sales. Sales through a foreign branch of your company are also direct exports.

 Partnership – entering into an agreement with other companies abroad.

 Franchising – using the name of foreign corporations in a domestic operation
 Branch Opening – head office which is abroad is still the one in charge

Why do companies go Global?

Competition – is the current market may demand to find other markets

Market Growth – continue to expand and bring exciting challenges to entrepreneurs.

Cutting Costs- rising cost in the country may initiate desire to go global.

Availability of Resources – some resources are only available in certain countries.

Connecting with Foreign Partners

1. Travel
2. Trade Fair
3. Government
4. Friends
5. Internet

Obstacles to Organization

 Language Barrier
 Laws
 Currency Fluctuation
 Political Climate
 Tariffs or Taxes
 Fortuitous Events
 Peace and order
 Regional Trade Alliances