In present day, Companies are more tending to buy the best raw materials which they search for throughout the world. They do not go for raw materials that are nearby just they because they are more convenient since the companies are getting more global and this mainly because the political and economic differences have decreased a lot which makes getting large amount of information easier. Let us find out about the skills that a global entrepreneur has to possess.
The challenges of a Global entrepreneur
There are three distinct challenges that a global entrepreneur has to face. Global entrepreneurship is not an easy task.
Distance – Companies are now venturing into the global market for various reasons. They are now setting up headquarters in various parts of the world through which vast operations can be done. Due to this a major problem is that many companies do not have the right infrastructure to handle such widespread market and dispersed operations. The time difference that is created due to this physical distance makes it hard to navigate. One of the biggest challenges of a global entrepreneur is bringing which is famously known as the “psychic distance”. This bridging problem generally arises due to the factors such as culture, education system, language, political system, economic development levels and also religion. These factors are very crucial since they can increase or decrease the psychological differences between two regions and the entrepreneurs have to make counterintuitive choices.
Context – The second challenge that is often faced by Global entrepreneurs is context. The political system, regulatory, judicial, tax, environmental and labor system vary from nation to nation. The important decisions regarding shareholder return and the ability to raise capital may depend on the entrepreneur’s decision of where to locate the company’s headquarters. Also these global entrepreneurs have to deal with many countries at the same time which can be very complex.
Resources – There are customers who expect start-ups to have the perfect skills and capabilities to achieve the levels that a large company does. This is a very difficult for those who made resource stretched new ventures but still they have no other choice other than to satisfy the customers.
Strengths that should possessed by global entrepreneurs
Every entrepreneur should have the quality of identifying opportunities. Then they should have the capability of gathering resources and then make deals. They should have vision, leadership skills and passion.
A good global entrepreneur should have the capability of articulating a global purpose.
Global entrepreneurs should also know how to build up an alliance. There are many start-ups that reach great levels by making a partnership with a big company.
Global entrepreneurs should also know how to build up an alliance. There are many start-ups that reach great levels by making a partnership with a big company. The entrepreneurs should make such decisions from positions of weakness. There should be reasonable time limit within which the deal will be negotiated. This also has the option that will help in case the deal with one company fails. The entrepreneurs must have the capability to select suppliers from around the world and also guide them without having manager close by.