International Business - Chapter 9 - Growing and Internationalizing the Entrepreneurial Firm
Worldwide, SMEs generate what percentage of employment?
60 to 90 percent
Worldwide, small- and medium-sized companies (SMEs) account for about what percentage of firms?
95 percent
International entrepreneurship
A combination of innovative, proactive, and risk-seeking behavior that crosses national borders and is intended to create wealth in organizations.
Letter of credit (L/C)
A financial contract that states that the importer's bank will pay a specific sum of money to the exporter upon delivery of the merchandise.
Export intermediary
A firm that performs an important middleman function by linking domestic sellers and foreign buyers that otherwise would not have been connected.
Entrepreneur
A founder and/or owner of new businesses or managers of existing firms who identifies and exploits new opportunities.
Stage model
A model of internationalization that portrays the slow step-by-step (stage-by-stage) process an SME must go through to internalize its business.
Microfinance
A practice to provide micro loans ($50-$300) used to start small businesses with the intention of ultimately lifting the entrepreneurs out of poverty.
Born global firm (international new venture)
A start-up company that attempts to do business abroad from inception.
Indirect export
A way to reach overseas customers by exporting through domestic-based export intermediaries.
Small and medium-sized enterprise (SME)
An entrepreneur who starts, grows, and sell several businesses throughout a career.
Serial entrepreneur
An entrepreneur who starts, grows, and sells several businesses throughout a career.
Venture capitalist (VC)
An investor who provides risk capital for early stage ventures.
Wealthy individual investors who become a source of entrepreneurial financing for a start-up business is called:
Angels
A start-up company that attempts to do business abroad from inception.
Born global firms (or international new ventures)
Products that are made by an entrepreneur in his or her home country and sold to customers in other countries are called:
Direct exports
The sale of products made by firms in their home country to customers in other countries.
Direct exports
A founder and/or owner of new businesses or managers of existing firms who identifies and exploits new opportunities.
Entrepreneurs
Founders and/or owners of new businesses or managers of existing firms who identify and exploit new opportunities are called:
Entrepreneurs
The identification and exploitation of previously unexplored opportunities.
Entrepreneurship
A firm that performs an important middleman function by linking domestic sellers and foreign buyers that otherwise would not have been connected.
Export intermediary
Licensing is typically used in service industries such as fast-food chains.
False
Only MNEs have the resources to do business globally.
False
SMEs typically operate only domestically, and only large MNEs typically do business in other countries.
False
Societies that are individualistic and have low uncertainty-avoidance tend to foster fewer entrepreneurs.
False
Worldwide, SMEs create about 60 percent of the total value added to products.
False
In the US, small- and medium-sized companies (SMEs) are defined as having:
Fewer than 500 employees
Franchising
Firm A's agreement to give Firm B the rights to use A's proprietary assets for a royalty fee paid to A by B. This is typically done in service industries.
Which is NOT one of the 4Fs of entrepreneurial financing?
Foreigners
Firm A's agreement to give Firm B the rights to use A's proprietary assets for a royalty fee paid to A by B. This is typically done in service industries.
Franchising
A way to reach overseas customers by exporting through domestic-based export intermediaries.
Indirect exports
A combination of innovative, proactive, and risk-seeking behavior that crosses national borders and is intended to create wealth in organizations.
International entrepreneurship
A financial contract that states the importer's bank will pay a specific sum of money to the exporter upon delivery of the merchandise.
Letter of credit (L/C)
Microfinancing is defined as:
Loaning small sums of money (US$50 to US$300) to entrepreneurs in an attempt to lift them out of the poverty level
A practice to provide micro-loans ($50-$300) used to start small businesses with the intention of ultimately lifting the entrepreneurs out of poverty.
Microfinance
When an investor loans small sums of money (e.g. US$50 to US$300) to entrepreneurs in an attempt to lift them out of the poverty level, this is called:
Microfinancing
An entrepreneur who starts, grows, and sells several businesses throughout a career.
Small and medium-sized enterprise (SME)
A firm with fewer than 500 employees in the United States and with fewer than 250 employees in the European Union.
Small and medium-sized enterprises (SMEs)
A model of internationalization that portrays the slow step-by-step (stage-by-stage) process an SME must go through to internationalize its business.
Stage models
Entrepreneurship
The identification and exploitation of previously unexplored opportunities.
Direct export
The sale of products made by firms in their home country to customers in other countries.
As a firm moves from direct exports, to licensing, to FDI, the resources required for operating the business typically increase.
True
Franchising is typically used in service industries such as fast-food chains.
True
Societies that are collectivistic and have high uncertainty-avoidance tend to have fewer entrepreneurs.
True
Worldwide, SMEs create about half of the total value added to products.
True
An investor who provides risk capital for early stage ventures.
Venture Capitalist (VC)
