A new breed of ‘global entrepreneur’ has developed, as an increasing number of start-ups are operating across borders, according to Daniel J. Isenberg, writing in the Decemeber 2008 issue of the Harvard Business Review.
These days, says Isenberg, entrepreneurs don’t automatically buy raw materials from nearby suppliers or set up factories close to their headquarters.
Instead, because political and economic barriers have come down and vast quantities of information are available at their fingertips, they seek out the world's best manufacturing locations, scout for talent across the globe, tap investors wherever they may be located, and learn to manage operations from a distance.
Isenberg says today’s entrepreneurs cross borders for two reasons. The first is defensive: "To be competitive, many ventures... have to globalise some aspects of their business - manufacturing, service delivery, capital sourcing, or talent acquisition, for instance - the moment they start up."
The second reason is more aggressive: "Many new ventures are discovering that a new business opportunity spans more than one country or that they can use distance to create new products or services."
However, the author's research shows global entrepreneurs face three distinct challenges: distances, differences in cultural contexts, and paucity of resources.
Nevertheless, Isenberg insists: "Entrepreneurs shouldn’t fear the fact that the world isn’t flat. Being global may not be a pursuit for the fainthearted, but even start-ups can thrive by using distance to gain competitive advantage."
The Global Entrepreneur
Daniel J. Isenberg, Harvard Business Review, December 2008
