COURSE LECTURE

INTERNATIONAL BUSINESS AND TRADE

TOPIC 5: GLOBAL ENTREPRENEURSHIP and GLOBAL INTRAPRENEURSHIP

What is entrepreneurship?

The word entrepreneur actually originates from the 13th century French word 'entreprendre'
which means to undertake or to do something. By the 16th century this had become the noun
entrepreneur, taken to mean someone who undertakes a business project or speculation.

Entrepreneurship is the pursuit of starting, managing and scaling a business. It involves

combining innovation, skills, and vision to develop new products, services, or ideas that meet
market demand and create value for a target audience

Entrepreneurship is the practice of starting a new business or renewing an existing one, in order
to capitalize on new opportunities. Without the essential element of initiative, no new venture
can be successful

What terms best describe an entrepreneur?

Entrepreneurs can be categorized as the operator, the builder, and the creators. Lastly,
entrepreneurs are crucial to the economy since they encourage economic growth by creating
new services and commodities that stimulate new employment opportunities

Legacy of Henry Sy

• Humble shoe store in Manila in the 1950s

• Founder of SM Investment
• SM Malls - pioneered the modern shopping mall experience in the Philippines, starting
with SM North EDSA in 1985
• Diversification - expanded into various industries, including real estate development, SM
Prime Holdings and banking
• Inclusive Growth - generated vast employment opportunities and played a key role in
shaping the country's economic landscape
• Legacy - often cited as a self-made billionaire who transformed from a modest immigrant
to the richest man in the Philippines, leaving a legacy of business innovation,
resilience, and economic impact. His focus on customer-centricity and long-term
vision continues to inspire Filipino entrepreneurs.

https://www.smsupermalls.com/whats-new/news/henry-sy-sr-the-legacy-endures
Global Entrepreneurship

Global entrepreneurship refers to the practice of starting, managing, and growing a business
that operates across international borders. In today’s interconnected world, entrepreneurs are
no longer confined to their home markets; instead, they seek opportunities globally to expand
their reach, tap into new customer bases, and access diverse resources.

Global entrepreneurship has become increasingly important due to factors like advancements in
technology, which make it easier to communicate and conduct business across different
countries, and the reduction of trade barriers, which facilitates the movement of goods, services,
and capital. Entrepreneurs who venture into global markets can benefit from larger and more
diverse markets, reduced costs through global sourcing, and the ability to mitigate risks by
diversifying their operations across multiple regions.

However, global entrepreneurship also comes with challenges, such as navigating different
cultural norms, dealing with varied regulatory environments, and managing risks associated with
currency fluctuations and political instability. Successful global entrepreneurs must be
adaptable, culturally aware, and capable of leveraging global networks and partnerships.

Overall, global entrepreneurship plays a crucial role in driving economic growth, fostering
innovation, and creating jobs worldwide. It reflects the dynamic and borderless nature of the
modern business landscape, where opportunities and competition are truly global.

Global Aspects of Entrepreneurship

 Learning the workings of foreign markets and competing with them

 One can find opportunities to grow business in trending markets
 There is an increase in the customer's reach
 They learn to build alliances with the world's most powerful partners
 There is excelling at international supply chain management
 Entrepreneurship plays a crucial role in advancing economic growth by fostering
innovative technologies
 It also contributes to a country's GDP and promotes self-reliance by reducing the
country's dependency on imported goods and services.

Myths about Entrepreneurs

• Entrepreneurs are born, not made

• Entrepreneurs are aggressive risk takers
• Entrepreneurs must invent something new
• Entrepreneurs make more money
• Being first is essential
• A good product means a successful business
 • It takes a lot of money to start a business
• Age is a limit

List of Global Entrepreneurs

• Jeff Bezos, Founder of Amazon

• Steve Jobs, Co-Founder of Apple
• Elon Musk, Founder of SpaceX and CEO of Tesla
• Mark Zuckerberg, Founder of Facebook
• Bill and Melinda Gates, Co-Founder of the Bill & Melinda Gates Foundation
• Sam Walton, Founder of Walmart and Sam’s Club
• Larry Page, Co-Founder of Google
• Ted Turner, Founder of Cable News Network (CNN)
• Jack Dorsey, Co-Founder of Twitter
• Michael Dell, Founder of Dell Technologies
• Sergey Brin, Co-Founder of Google
• Martha Stewart, Founder of Martha Stewart Living Omnimedia
• Richard Branson, Founder of Virgin Group
• Beyoncé, Founder of Ivy Park
• Michael Bloomberg, Founder of Bloomberg LP
• Rihanna, Founder of Fenty Beauty
• Jack Ma, Founder of Alibaba
• Reed Hastings, Founder of Netflix
• Larry Ellison, Co-Founder of Oracle Corporation
• Dov Moran, Inventor of the USB Flash Drive
• Kevin Systrom, Co-Founder of Instagram
• Jessica Alba, Co-founder of The Honest Company
• Mike Krieger, Co-Founder of Instagram
• Garrett Camp, Co-Founder of Uber
• Adam Neumann, Co-Founder of WeWork
• Brian Chesky, Co-Founder of Airbnb
• Vera Wang, Founder of Vera Wang
• Warren Buffett, Chairperson of Berkshire Hathaway
• Kylie Jenner, Founder of Kylie Cosmetics
• Arianna Huffington, Founder of The Huffington Post

https://robertsmith.com
Global Intrapreneurship

Global intrapreneurship involves fostering entrepreneurial behaviors and initiatives within a

large, established organization that operates on a global scale. Intrapreneurs are employees
who think and act like entrepreneurs, developing new ideas, products, or processes that can
add value to their company. Unlike entrepreneurs who build new ventures from scratch,
intrapreneurs drive innovation from within, leveraging their company’s existing resources,
networks, and capabilities.

In a global context, intrapreneurship is especially significant because it allows multinational

corporations to remain competitive and adaptable in diverse and rapidly changing markets.
Global intrapreneurs often work across different regions and cultures, seeking to identify and
capitalize on local opportunities that align with the broader strategic goals of their company.

The importance of global intrapreneurship has grown as companies face increasing pressure to
innovate continuously and respond to global trends, such as digital transformation,
sustainability, and changing consumer preferences. By empowering employees to act as
intrapreneurs, companies can harness the creative potential of their workforce, encouraging
them to experiment with new ideas and take calculated risks without the fear of failure
associated with traditional entrepreneurship.

However, successful global intrapreneurship requires a supportive corporate culture, including

clear communication, resources for innovation, and a tolerance for failure. Organizations must
create an environment that encourages creative thinking, provides the necessary tools and
autonomy, and recognizes the efforts of intrapreneurs.

Overall, global intrapreneurship is a powerful way for companies to drive growth and innovation
from within, allowing them to stay ahead in the global marketplace by continuously adapting to
new challenges and opportunities.

Intrapreneurship is a system allowing employees to think and act as ENTREPRENEURS,

within the organization.

Global Intrapreneurship Use Cases

Sony’s Play Station

▪ Ken Kutaragi is the intrapreneur behind the launch of the first Sony's PlayStation in
December 1994 in Japan
▪ It eventually became the first “computer entertainment platform” to ship over 100
million units, doing so in under a decade.
 Google’s Gmail

▪ Paul Buchheit started his career at Google in 1999, becoming the company’s 23rd
employee.
▪ Development of a web-based email, DOUBTED STRONGLY by many within the
company
▪ Larry Page and Sergey Brin, Founders of Google, decided to support Buchheit with
his project
▪ The Outcome:
▪ Gmail did blow away Hotmail and Yahoo Mail
▪ Small experiment to becoming a key service of Google’s product offering with over
1.5 billion global active users
▪ Gmail and Google AdSense advertising program set the foundations for Google’s
online advertising service to generate $147 billion in revenue in 2020.

Frito-Lay’s Cheetos

▪ Frito-Lay – Flamin’ Hot!

▪ In the mid-1980s, to boost revenue the Frito-Lay CEO announced an initiative for all
300,000 employees to “adopt an owner’s mindset.” All employees were invited to
share innovative ideas to boost the growth of the organization.
▪ A JANITOR named Richard Montañez, shared an idea with the CEO. Noticing that
there was NO product catering to the Latino community, he added a home-made
spice mix to some Cheetos and brought them to his meeting.
▪ The management was stunned by the taste. His idea was chosen for implementation
right away.

Here's a basic comparison between global entrepreneurship and global intrapreneurship:

Aspect Global Entrepreneurship Global Intrapreneurship

Definition Starting and managing new Innovating and developing
ventures across international new ideas within an existing
borders global organization
Focus Creating new businesses or Driving innovation and growth
startups from scratch. within an established
company.
Risk Higher personal financial risk; Lower personal financial risk;
entrepreneurs invest their resources and risks are
own resources. borne by the company.
Resources Must secure resources like Leverages the existing
funding, staff, and market resources, infrastructure, and
access independently. support of the parent
company.
 Autonomy High autonomy in decision- Limited autonomy; must align
making and business with the company’s strategies
direction. and policies.
Innovation Can be highly disruptive, Typically focused on
introducing entirely new incremental or strategic
products or services to the innovation within existing
market. markets or business units
Motivation Driven by personal ambition, Driven by opportunities to
profit, and independence. contribute to company
success, personal growth,
and career advancement.
Challenges Navigating market entry, Overcoming corporate
securing funding, and bureaucracy, securing buy-in
building brand recognition. from leadership, and aligning
with company goals
Scope of Impact Can have a broad impact, Impact is often more focused
potentially creating new on enhancing or expanding
industries or significantly the company’s current
disrupting existing ones operations and offerings.
Support Structure Relies on external networks, Has access to the company’s
investors, and advisors. internal support systems,
including funding, R&D, and
market expertise

In summary, while both global entrepreneurship and global intrapreneurship involve innovation
and cross-border activities, they differ significantly in their approaches, resources, risks, and
scopes. Entrepreneurs create new ventures independently, facing high risks but also enjoying
complete control. In contrast, intrapreneurs innovate within the safety net of a larger
organization, focusing on enhancing the company’s global operations while working within
certain constraints.

Global entrepreneurship operates within a complex set of environments that shape how
entrepreneurs start, grow, and manage their ventures across international borders. Here are the
key environments that influence global entrepreneurship:

FACTORS AFFECTING GLOBAL ENTREPRENEURSHIP

Understanding and navigating these environments effectively is essential for global

entrepreneurs to identify opportunities, mitigate risks, and build successful ventures that can
thrive in the complex and interconnected global marketplace.
Political and Legal Environment

This environment encompasses government policies, regulations, and political stability.

Entrepreneurs must consider trade policies, tariffs, taxation, labor laws, and intellectual property
protections. Political stability and supportive legal frameworks encourage investment, whereas
political unrest or restrictive regulations can hinder entrepreneurial activities.

Economic Environment

The economic environment includes factors like economic stability, market size, growth rates,
and the availability of capital. Entrepreneurs must navigate differences in income levels,
consumer spending power, inflation rates, and access to funding sources such as banks,
venture capital, or government grants. Favorable economic conditions can create opportunities,
while economic downturns or instability can pose challenges.

Social Environment and Cultural Environment

The social environment includes demographic trends, education levels, and social attitudes
towards entrepreneurship. Factors like population growth, urbanization, and shifts in consumer
behavior influence market demand and labor availability. Social trends, such as the growing
focus on sustainability or health-consciousness, can also create new business opportunities.

The cultural environment involves the values, beliefs, behaviors, and customs of different
societies. Entrepreneurs must understand and adapt to cultural differences in communication,
negotiation, consumer preferences, and business practices. Cultural awareness and sensitivity
are crucial for building trust and successfully entering new markets.

Technological Environment

Technological advancements, such as the internet, digital platforms, and communication

technologies, play a critical role in global entrepreneurship. These technologies enable
entrepreneurs to reach international customers, streamline operations, and leverage innovations
like e-commerce, fintech, and digital marketing. Access to technology can provide a significant
competitive advantage in global markets.

Environmental Factors

Environmental considerations, including regulations related to sustainability, climate change,

and environmental impact, are increasingly important. Entrepreneurs must be aware of global
trends towards eco-friendly products and services, as well as regulatory requirements that may
affect production and supply chains.
Competitive Environment

The competitive environment refers to the level of competition within and across international
markets. Entrepreneurs must assess the competitive landscape, including the presence of local
and international competitors, market entry barriers, and the potential for strategic alliances.
Understanding the competitive environment helps in positioning the business effectively.

Global Trade Environment

This includes international trade agreements, tariffs, and the overall ease of doing business
across borders. Free trade agreements, regional trade blocs, and international trade policies
can significantly impact market access and cost structures for global entrepreneurs.

FACTORS AFFECTING GLOBALINTRAPRENEURSHIP

Global intrapreneurship, like global entrepreneurship, is influenced by a variety of environments

that shape how intrapreneurs innovate and drive change within multinational corporations.

Successfully navigating these environments enables intrapreneurs to identify opportunities,

drive innovation, and create value within their organizations on a global scale. It requires a
combination of strategic thinking, adaptability, and a deep understanding of both the internal
and external factors that impact the company’s operations worldwide.

Internal Corporate Environment

The internal environment includes the company’s culture, leadership support, organizational
structure, and resources. A supportive corporate culture that encourages innovation, risk-taking,
and creativity is crucial for intrapreneurship. Access to funding, time, and tools, along with
strong backing from top management, empowers intrapreneurs to pursue their initiatives. In
contrast, rigid hierarchies, lack of support, and a focus on short-term results can stifle
intrapreneurial efforts.

Political and Legal Environment

Intrapreneurs must navigate the political and legal environments of the countries in which their
company operates. This includes understanding local regulations, compliance requirements,
trade laws, and political stability. Multinational corporations often have to deal with complex
legal environments across different jurisdictions, which can impact the feasibility and execution
of intrapreneurial initiatives.
Economic Environment

The broader economic environment affects the company’s overall strategy and resource
allocation. Economic conditions such as market growth, recession, or inflation can influence the
availability of funds for intrapreneurial projects. Companies may be more willing to invest in new
ideas during times of economic growth, while economic downturns might lead to budget cuts
and reduced risk tolerance.

Social Environment and Cultural Environment

Social factors, such as changing consumer behavior, demographic trends, and societal values,
influence intrapreneurial projects. For instance, there is growing emphasis on sustainability,
diversity, and corporate social responsibility, which can shape intrapreneurial initiatives focused
on social impact, eco-friendly products, or inclusive business practices.

The cultural environment plays a significant role in global intrapreneurship. Intrapreneurs must
be aware of cultural differences within the company’s global workforce, as well as in the external
markets they target. Effective communication, cultural sensitivity, and the ability to adapt
products or services to meet local preferences are critical for success.

Technological Environment

Technology is a key driver of innovation in global intrapreneurship. Intrapreneurs leverage

emerging technologies such as AI, big data, cloud computing, and digital platforms to develop
new products, improve processes, or enhance customer experiences. Access to cutting-edge
technology and the company’s ability to integrate and adopt new technologies are important
factors that influence intrapreneurial success.

Environmental Factors

Intrapreneurs must also consider the environmental impact of their projects, especially as global
companies face increasing pressure to meet sustainability standards and reduce their carbon
footprint. This includes aligning intrapreneurial initiatives with the company’s environmental
goals and complying with international environmental regulations.

Competitive Environment

The competitive landscape within the industry influences the direction of intrapreneurial
activities. Intrapreneurs need to stay aware of global trends, competitors’ innovations, and shifts
in market demands. Understanding the competitive environment helps intrapreneurs identify
gaps in the market and develop solutions that give their company a competitive edge.
Global Trade Environment

For global intrapreneurs, understanding the dynamics of international trade, tariffs, supply chain
complexities, and trade agreements is crucial. These factors can influence the cost, speed, and
feasibility of launching new products or services in different regions.

KEY REQUISITES FOR A SUCCESSFUL INTRAPRENEURSHIP ENVIRONMENT

Creating an environment conducive to intrapreneurship within a company involves setting up the

right conditions that encourage employees to think creatively, take initiative, and pursue
innovative ideas.

By setting up these requisites, companies can create an intrapreneurship-friendly environment

that nurtures innovation from within, allowing employees to leverage their entrepreneurial spirit
to drive the company forward.

Supportive Leadership

Leadership commitment is crucial for fostering intrapreneurship. Leaders must actively

encourage and support innovation, provide a clear vision, and be willing to invest in new ideas.
A leadership team that champions intrapreneurship sets the tone for a culture of innovation and
risk-taking.

Culture of Innovation

A company culture that values creativity, experimentation, and learning from failure is essential.
Employees should feel safe to propose new ideas without fear of criticism or failure.
Encouraging collaboration, open communication, and celebrating innovative efforts, even if they
don’t succeed, helps build an innovative culture.

Access to Resources

Intrapreneurs need access to resources such as time, funding, and tools to develop and test
their ideas. Companies should provide dedicated budgets for innovation, access to technology,
and the ability to use company assets like research and development facilities or marketing
channels.

Autonomy and Empowerment

Empowering employees with the autonomy to explore new ideas, make decisions, and take
ownership of projects is crucial. This includes allowing them the flexibility to work on
intrapreneurial projects outside of their regular responsibilities and the authority to drive those
projects forward.
Cross-Functional Collaboration

Intrapreneurship thrives in environments where employees from different departments can

easily collaborate. Breaking down silos and encouraging cross-functional teams allows for
diverse perspectives and skills to come together, enhancing creativity and problem-solving.

Clear Processes and Support Structures

Establishing clear processes for proposing, evaluating, and developing intrapreneurial projects
helps streamline innovation efforts. This might include innovation labs, dedicated teams, or a
formal intrapreneurship program with guidelines on how to pitch ideas, secure funding, and
move projects forward.

Recognition and Rewards

Recognizing and rewarding intrapreneurial efforts motivates employees to engage in innovative

activities. This can be through financial incentives, promotions, public recognition, or providing
career development opportunities. A reward system that values innovation can significantly
boost intrapreneurial activity.

Tolerance for Risk and Failure

A successful intrapreneurship environment embraces risk and understands that failure is part of
the innovation process. Companies should foster a mindset that views failures as learning
opportunities and encourages employees to experiment without fear of negative consequences.

Alignment with Strategic Goals

Intrapreneurial activities should align with the company’s overall strategic goals. Clear
communication of these goals helps intrapreneurs understand how their projects fit into the
broader vision of the company, ensuring that their efforts are not just innovative but also
strategically relevant.

Continuous Learning and Development

Providing opportunities for employees to learn and develop new skills is important for sustaining
intrapreneurship. Offering training in areas like design thinking, innovation management, or
entrepreneurship, as well as access to mentorship, can equip intrapreneurs with the skills and
confidence they need.
Effective Communication Channels

Open and effective communication channels are necessary for sharing ideas, feedback, and
progress updates. Platforms for idea sharing, such as innovation hubs, internal social networks,
or suggestion systems, can facilitate communication and keep everyone aligned.