Essay on Entrepreneurship: Key to Global Economic Development Post-2008 Crisis

Entrepreneurship has been recognized to play outstanding roles in driving welfare, economic growth, and innovation besides job creation. There has been an expression of varying views regarding entrepreneurship and economic development. Economic development across the globe can, however, be almost unattainable if innovation is not involved. Innovative entrepreneurship is, therefore, a key factor in the development of the modern economy. In the recent past, subsequently, the 2008 global crisis, innovation, and entrepreneurship have emerged as key concepts in public development and business field policies (Oviatt & McDougall, 2005). The relevance of the relationship between innovation and entrepreneurship increases as entrepreneurship is linked to the ability to come up with new products and services. Innovative entrepreneurship has therefore increased interests amid researchers as well as politicians. Innovation, therefore, is considered as a golden ingredient in entrepreneurship in pursuit of rising competition among the highest-level entrepreneur who is famous for generating bright ideas and converting them into marketable products that subsequently create growth.

Is your time best spent reading someone else’s essay? Get a 100% original essay FROM A CERTIFIED WRITER!

Save 25%

Innovation has an impact on entrepreneurship both at local and international levels. A company's innovative capacity is its enhancement of sustainable competitive advantage. For instance, companies that have extensive innovation activities have minimal future uncertainties hence they can easily intensify their competitive power enabling them to be technology pioneers in their fields. The only entrepreneurs who will never run out of options are the innovative ones since they always have new processes, products and services. Both public and private sector policymakers have an increasing interest in technological change, entrepreneurship, and innovation to move to a knowledge-based economy. Nations such as Germany, South Korea, USA, Canada and Finland have a great record in economic growth as they have prospered and created wealth in the past century (Oviatt & McDougall, 2005). This economic growth and wealth creation are attributed to their disciplined trends in innovation and entrepreneurship

In a study showing the relation between internationalization and innovation, most firm-level studies showed the role of both productivity and innovation in internalization. The study showed innovation affects internalization both directly and indirectly. Firstly, innovation rises the probability of SME internalization due to rise of new products demand internationally. Secondly, this research shows that innovation has a direct impact on productivity as it facilitates business's export orientation.

Further literature shows that the upcoming businesses that internationalize early have intensive knowledge as well as strong technological and innovation orientation (Paul & Rosado-Serrano, 2019). These businesses are less likely to be constrained by national boundaries and distance-enhancing flexible exploitation of international opportunities. A recent empirical study carried out shows that innovation accelerates the time taken by a firm to internalize, allowing it to venture into more activities hence access to high-control entry modes in the international markets (Rialp, Rialp & Knight, 2005). Innovation is, therefore, a key ingredient in the internalization of entrepreneurial businesses.

Innovation also international entrepreneurship that impacts brand loyalty, brand trust, and customer satisfaction. The research was conducted exploring global online entrepreneurship on a theoretical basis. To evaluate the effects of innovation on client gratification, brand loyalty, and brand trust, regression, and correlation analysis were used. The results showed a positive and direct relationship between innovation and brand trust, customer satisfaction, and brand loyalty (Cavusgil & Knight, 2015). These three aspects, i.e., client gratification, brand loyalty, and brand trust, are key in entrepreneurship.

Another key impact of innovation on international entrepreneurship is that, besides developing new services and products, it also facilitates the opening of new markets as well as enhancing reinvention of the company's operations for optimal services to these newly opened markets. According to Nelson & Winter (1982), upcoming firms that adapt strong innovative culture are likely to internationalize even before the internationalized oriented companies that have not embraced the innovative culture (Cavusgil & Knight, 2015). For any culture to be termed as innovative, it should be in a position to facilitate knowledge acquisition that, in turn, drives international performance.

Further study was carried out to provide a systematic assessment of studies on major exporting impetuses in small and medium enterprises (SMEs). The authors developed empirical article reviews on exporting impetuses involved in SMEs and proposed a research agenda. The SMEs exporting stimuli mainly focused on competencies, subjective characteristics, skills as well as roles of relevant parties such as customers and intermediaries involved in human resources. SMEs are the pillars of the economy, especially the European Union (EU). EU's long-run competitiveness is dependent on SMEs ability to actively participate in universal markets (Oviatt & McDougall, 2005). Innovation was found to be a key driver in exporting procedures.

All along, we have been looking at entrepreneurship at an international level because, in the twenty-first century, entrepreneurship greatly expanded and began to view business with a globe lens. There is, therefore, great interest in the factors that affect international entrepreneurship. There is much collaboration as well as competition from entrepreneurial companies, especially those in high-tech sectors across the globe. These international entrepreneurs are financed by trade credits, private equity, banks, venture capital, micro-finances, crowdfunding as well as other sources that emanate from various countries due to innovation of new technologies such as artificial intelligence and fintech that makes it easy to match capital supply and international demand.

Save for innovation, logistics, and ICT costs would have been so high since the international entrepreneur involves various nations. Just as innovation has an impact on international entrepreneurship, so is the opposite. For instance, international entrepreneurship is a major source of outward knowledge for big organizations that are in constant search of technological innovations and noble business ideas. More technological innovations will also give them the ability to sustain their competitive advantage as well as help to adjust to ongoing changes across the world.

Full participation in innovative organizational practices needs extra efforts beyond corporate routines. It means that internal capabilities, resources, and knowledge are insufficient in achieving the goal. It is necessary to collaborate with progressively internationalized entrepreneurial organizations for the strategic establishment of corporations. This will facilitate the leverage of entrepreneurs' international orientation towards technology and innovations across the country. This explains why large corporations are getting involved in corporate venture capital to leverage the main opportunities that come with international entrepreneurship (Francioni et al., 2016). Lastly, innovation has also enhanced entrepreneurs to upgrade their technology portfolio to participate in equity investment alongside entrepreneurial ventures.

Crowdfunding and peer-to-peer lending as developed as a result of innovation. These two areas have favored the growth of international entrepreneurship. For instance, peer to peer lending is very famous in China. On the other hand, rewards and donations have been doubling annually in the recent past. These procedures involve global investors, which means that new regulations have been invented to help in regulating fraud as well as misrepresentations. There is an upcoming conference for associates aimed at converging policymakers and research to debate about the shifting international entrepreneurship landscape in future policies (Vrontis & Christofi, 2019. It will help to improve people's understanding of the fast-changing phenomenon in international entrepreneurship by giving more details on its dynamics and drivers concerning its implications to the policymakers, entrepreneurs, and investors across the globe.

Conclusion

In conclusion, the issue of the impact of innovation on international entrepreneurship has been researched widely. Numerous researches have been completed, as explained herein. There are, however, more researches that are yet to be concluded. Innovation is seen to play a very great role in the running of international entrepreneurship with its impacts touching on various areas ranging from customer satisfaction to brand loyalty. Without innovation, most of these successes would not have been accomplished in international entrepreneurship. On the other hand, there would not have been so many innovations regarding entrepreneurship if it was only done locally. The development of international entrepreneurship has, therefore, triggered advancement in technology and innovations; hence the two impact each other.

References

Cavusgil, S. T., & Knight, G. (2015). The born global firm: An entrepreneurial and capabilities perspective on early and rapid internationalization. Journal of International Business Studies, 46(1), 3-16. DOI: 10.1057/jibs.2014.62

Francioni, B., Pagano, A., & Castellani, D. (2016). Drivers of SMEs' exporting activity: a review and a research agenda. Multinational Business Review, 24(3), 194-215. https://doi.org/10.1108/mbr-06-2016-0023

Keupp, M. M., & Gassmann, O. (2009). The Past and the Future of International Entrepreneurship: A Review and Suggestions for Developing the Field. Journal of Management, 35(3), 600-633. https://doi.org/10.1177/0149206308330558

Oviatt, B. M., & McDougall, P. P. (2005). Defining international entrepreneurship and modeling the speed of internationalization. Entrepreneurship theory and practice, 29(5), 537-553. DOI: 10.1111/j.1540-6520.2005.00097.x/

Paul, J., & Rosado-Serrano, A. (2019). Gradual internationalization vs born-global/international new venture models. International Marketing Review. DOI: 10.1108/IMR-10-2018-0280

Rialp, A., Rialp, J., & Knight, G. A. (2005). The phenomenon of early internationalizing firms: what do we know after a decade (1993-2003) of scientific inquiry? International business review, 14(2), 147-166. DOI: 10.1016/j.ibusrev.2004.04.006

Vrontis, D., & Christofi, M. (2019). R&D internationalization and innovation: A systematic review, integrative framework and future research directions. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2019.03.031