 Quiz. For ten (10) points each, answer the following questions briefly.

1. How might a country’s level of economic development affect the nature of entrepreneurial activity?
Economic development can affect the nature of entrepreneurial activity because every country has their
own national characteristics. The national characteristics of a country are the country’s main attributes
shaped by their priorities, laws, culture, environment and other factors and this national characteristics
shapes and influences how the entrepreneurs of that country do their business activities because it is
the characteristics of that country and entrepreneurs have to adjust their business to cope with the
country or to penetrate the country’s market.

2. What are the characteristics of a global start-up? What might explain the increasing number of global
start-ups? Why might a global start-up be harder to manage than a purely domestic company? What
information would you need to assess whether you should launch a global start-up?
A global start-up has three major characteristics. First, the products they are offering and their
capabilities must be competitive against other global businesses. Second, the entrepreneur of the global
start-up must have abundant knowledge and capability, in terms of the modern technologies so that
they would take advantage of it or use it to gain advantage. Lastly the product or service that they are
offering must have a very high demand across the markets around the world. The reason why global
start-up has started to increase is because there was a shift in the global consumer preferences and
because of the effects of the internet. One of the main reasons why global start-up is much harder to
manage than a purely domestic company is because, global start-up have to satisfy the needs and
demands of a global market and they do not only manage one or two branches but they have to manage
a lot of branches all around the world and each of these branches have to satisfy the needs of different
cultures, customs and policies of different countries. To know whether you should launch a global start-
up the entrepreneur must answer seven questions. The first question is, do they really want to build
their brand around the world form the start? The second question is, if they need to hire Human
Resource employees in different countries to better accommodate each countries rules and regulations
to achieve success? The third question is, does the company have to acquire the money from foreign
countries to succeed? The fourth question is, will the global market choose the products and services
you are offering against the offering of your competitors? The fifth question is, how fast can you
establish an international system. The sixth question is, do you need global scale and scope to justify the
financial and human capital investment in the venture? And lastly, if you started the business
domestically, would it hinder or make it harder for you to become a global market in the future?

3. Once you have decided to launch a global start-up, what key resources and capabilities must you
begin putting into place?
Once you have decided to launch a global start-up you need this six key resources and capabilities to
succeed. First, you need a management team that have an experience in international business. Second,
you need to establish an international network with your suppliers and customers. Third, a marketing
strategy and technological knowledge that would help you gain an advantage in gaining costumers and
blocking out competition. Fourth, strong intangible assets. Fifth, the ability of developing new products
and constant innovations to your products and services. Sixth, developing a clear system of
communication all across the branches of your businesses, suppliers, complements and costumers.

4. How is intrapreneurship similar to and different from entrepreneurship? How might intrapreneurs
differ from entrepreneurs?
The similarity of intrapreneurship with entrepreneurship is that both of them are producing something
new to offer, whether it is a product or a service, to the market. The difference is that, entrepreneurship
is focusing on establishing a new business, while intrapreneurship is focusing on making a new product
or service that an existing business would offer to the market. The main difference between an
intrapreneur to an entrepreneur is that, entrepreneurs has the freedom to choose or decide on what
kind of business they want to establish, and they have the power to decide or choose which direction
the business would go. Whereas, intrapreneurs are limited in their power of decision making since they
are working for an existing organization. Intrapreneurs would have to ask for the permission of the
organization they are under in before making a decision on what product they should do in the future. In
addition, another difference between intrapreneur and entrepreneur is that, intrapreneurs in
establishing products or services, they have the backing of an existing organization and don’t have to
use their money in establishing it, while entrepreneur they have to use their own money in establishing
new businesses.

5. What challenges might an intrapreneur face? Why might organizations have an interest in becoming
intrapreneurial? What challenges do organizations face in becoming more intrapreneurial?
One of the challenges of an intrapreneur is that they are limited on their decision making on what type
of product or service they would have to establish. Another challenge for intrapreneurs is that they have
to always ask for the permission of the organization they are in so that they would not cause any friction
within the organization. Organizations have an interest in becoming intrapreneurial because it helps in
increasing the making the process of technology transfer from research and development to the
marketplace faster and it also helps in the cost-effectiveness of the process. The challenge that an
organization may face when they become more intrapreneurial is that it may cause many frictions
within their organization, since some intrapreneurs make their own decisions and act on it first rather
than asking for the permission or the direction of the organization first.