Current Events in International Entrepreneurship - Term Paper Example

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The paper "Current Events in International Entrepreneurship" highlights that the European and American countries followed by nations like Japan are seriously affected by the economic crisis, and as a result of this, these nations are marked by low rates of perceived opportunities for businesses…
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Current Events in International Entrepreneurship
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Download file to see previous pages What is observable is the general rise in the Total Early-stage Entrepreneurial Activity throughout the world between the year 2010 and 2011 which contradicts with the experience in previous years. While efficiency-driven economies improved by nearly 25%, innovation-driven economies followed with a 22% increase. In fact, there are various factors that can be measured in order to understand entrepreneurship in a nation. The first one among them is the percentage of the working-age population who own or are engaged in setting up a new business. In addition, it is helpful to understand the informal investment rate. It means the percentage of the population who has personally invested in the business run by some other one. According to the GEM 2011 Global Report, some other important measures are the percentage of ventures with new products and new services, the percentage of foreign customers, and people’s belief about the chances for setting up a new business in their country. In order to understand the situation in the nation, it may also be useful to assess people’s attitude towards new entrepreneurs in society. It can be understood by checking if people believe entrepreneurs get high status in society. Another vital measure is the involvement of the media. For example, people’s perception of the degree of media exposure new successful ventures get has an impact on the entrepreneurship in total. Entrepreneurial Ecosystem and Its Components. In fact, the entrepreneurship ecosystem consists of six domains which effectively classify the hundreds of elements in the ecosystem. They are conducive culture, enabling policies and leadership, availability of appropriate finance, quality human capital, venture-friendly markets, and infrastructural supports. The mere fact is that each ecosystem is, in fact, unique in nature with its own features. For example, in Taiwan, the ecosystem developed in the context of a huge accrual of highly successful Taiwanese expatriates in the US. Similarly, the Chinese ecosystem is marked by a totalitarian government and diverse regional policies. Another interesting point is that a time comes when an entrepreneurship ecosystem becomes self-sustaining in nature. To illustrate, when it is found that all the six domains are strong enough to reinforce mutually, it is possible for the government to reduce its control over the market. As Isenberg points out, the various domains of entrepreneurship ecosystem can be identified as leadership, government financial capital, early customers, networks, labor, educational institutions, infrastructure, support professions, nongovernment institutions, societal norms, and success stories. Out of these factors, leadership helps through social legitimacy, support, and policies. Also, there can be investment support, regulatory frameworks, and tax benefits. While educational institutions help in the form of special entrepreneurship training and degrees, societal norms help through tolerance of risk, mistakes, and failure. Entrepreneurial Finance across the World. It is generally found that in all countries, young and new firms have less dependence on bank financing and are more inclined towards informal financing. ...Download file to see next pagesRead More
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