Quiz 9: Growing and Internationalizing the Entrepreneurial Firm

Business

Characteristics of Ab's growth, innovation, and financing strategies that are typical of successful entrepreneurial firms are in the following aspects: • It leveraged focus and innovation to overcome their initial lack of capital resources. • Their strategy to target consumers ignored by mainstream players. • Pioneering of Alipay system which has overcome Chinese customers' reluctance to shop online. Unusual with respect to Ab's are in the following aspects: • Unlike larger companies relying on credit card information, it leveraged informal institutions to secure itself as a middleman between B2C and B2B markets. • Unusual support from Chinese Government. • Lack of domestic or international competition.

Entrepreneurship: Entrepreneurship is defined as the identification and exploitation of unexplored opportunities. The characteristics of entrepreneurship are: • Growth • Innovation • Financing The growth of the entrepreneurship should be dynamic, flexible, and following guerrilla strategy. The innovation is the heart of entrepreneurship. The innovative strategy provides the basis for competitive advantage. The financing for the start up of business can be obtained from friends, founders, and family. There are risks involved with the entrepreneurship still the entrepreneur are starting new firms and the government supports the start ups. The reasons are as follows: • Business runs on the fundamental of no risk no gain. • Entrepreneurs are by nature risk takers and can tolerate ambiguities in order to reap profits. • Government supports the entrepreneurship for the economic growth and globalization.

Worldwide opportunities: The worldwide opportunities from the findings about the company, size, location, and ownership can be stated as follows: • Foreign language Translation Company has a wider scope as the language translation is required in each country. • The location of the company worldwide is more profitable where the manpower and other resources are cheaper. • The state of ownership affects the growth of the company worldwide. If the ownership is sole proprietorship then the capital will be lesser than the company form of ownership. So, the sole proprietorship has lesser scope of growth worldwide than other forms.