International Entrepreneurship

Case study: International entrepreneur: Richard Branson

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Table of Contents
1.0 Introduction................................................................................................................ 3

2.0 International Entrepreneur; Richard Branson.............................................................3

3.0 Motivation and Drivers............................................................................................... 4

3.1 Effectuation Theory.................................................................................................6

3.2 Trait Theory............................................................................................................ 6

4.0 Type of Venture..........................................................................................................7

5.0 Barriers.......................................................................................................................7

5.1 Isenberg model.......................................................................................................8

6.0 Internationalization.....................................................................................................8

6.1 Born Global Entrepreneurs.....................................................................................9

6.2 Stage Model............................................................................................................9

6.2.1 Uppsala model................................................................................................10

6.3 Benefits of internationalization..............................................................................11

6.4 Barriers to the Internationalization........................................................................12

7.0 conclusion................................................................................................................ 13

References.....................................................................................................................14
1.0 Introduction
The factor of production that carries out an enterprise's tasks is referred to as
entrepreneurship. According to economic theory, all production activities are based on
five factors; land, labor, capital, management, organization and enterprise (Parker,
2018) The majority of the risks and rewards are assumed by entrepreneurs when they
launch new businesses. Because they have the expertise and zeal to anticipate needs
and successfully promote fresh ideas, entrepreneurs are crucial to the health of any
economy. An entrepreneur is motivated to satisfy the need for accomplishment in
innovative and creative events (Davidsson, 2017). Entrepreneurs can successfully
establish international businesses in today's intensely competitive market with the
information and abilities provided by International Entrepreneurship: Starting,
Developing, and Managing a Global Venture. Money, fame, and the potential for
expansion are the rewards for successful entrepreneurship that successfully manages
the risks associated in starting a business. Financial losses and a weakened position in
the market result from business failure (Audretsch, 2012). A sophisticated management
approach must be used by an entrepreneur (Hayes, 2022). Setting long-standing
objectives, creating tactical policies, creating organization information systems, and
creating monitoring and assessment systems are all necessary for him to organize
managerial duties. He must be knowledgeable in administration, business, finance, and
technology management (Frese 2014). Richard Branson, a British multi-national
entrepreneur, is the subject of the study. The report will carefully analyze each facet of
the entrepreneur's endeavor, including the driving forces, difficulties, and type of
enterprise while presenting current developments in the relevant industries.

2.0 International Entrepreneur; Richard Branson

Richard Branson, whose full name is Sir Richard Charles Nicholas Branson, was born in
England on July 18, 1950 (virgin.com, 2022). A British businessman and explorer, he is
the CEO of Virgin Group Ltd. and is well-known for his publicity aerobatics as well as for
breaking records in hot-air ballooning and powerboat racing. (Britannica, 2022). As a
school dropout, Branson founded his first successful firm with the publication Student
while he was only a teenager. In order to make funds when the magazine started to lose
cash, he formed Virgin Mail Order Records. He also opened the first discount record
store in Britain. With his help, Virgin Records was established and quickly became the
leading punk and new wave label worldwide. The airline's name was changed to Virgin
Atlantic Airways after he acquired a controlling stake in it. Virgin Atlantic began with a
single aircraft but overcame fierce antagonism from legacy carriers after Branson sold
Virgin Records to raise additional funding for the airline (Britannica, 2022).

Source (Team, 2022)

As of 2022, Richard Branson's net worth is predicted to be $4.7 billion (Team, 2022).
Branson's multi-national conglomerate "Virgin" brand, which has emerged as a
prominent player in a number of industries, is largely responsible for his riches. More
than 40 businesses carry the Virgin name, such as the airline Virgin Atlantic, the money-
service provider Virgin, and the provider of space travel, Virgin Galactic (Cannon et al.,
2017)

3.0 Motivation and Drivers

The reason or motivation for someone's ongoing effort and labor is referred to as their
motivation. When things become difficult and discouraging, it provides inspiration and
clarity (Chrisos, 2019). Therefore, the decision of whether to start a firm is heavily
influenced by commercial motivation. Entrepreneurs value inspiration just as much as
the people they work with and connect with. Entrepreneurs need to be able to persuade
others to backing-up their ideas in addition to understanding, channelling, and
maintaining their own enthusiasm for beginning a firm (Stephan, 2015). Motivation is
vital to keep everyone attentive on the new company's goal and striving to attain it,
whether it's persuading venture groups to provide startup capital or inspiring potential
staffs in the early stages. The businesses Richard Branson built, such as a record label,
an airline, and a space exploration firm, may be largely responsible for his success
(Edwards, 2018). He doesn't wait around for inspiration to strike when faced with a
challenging scenario or beginning a project he isn't quite confident in. He doesn't even
speak, just does. Both achievements and failures can help you grow and learn, so you
might as well. Entrepreneurs need to be able to understand their own excitement for
starting a business and be able to capture it, retain it, and inspire others to support it.
(Minarcine, 2016.). Motivating potential employees early on or luring investment groups
to contribute startup capital, motivation is vital to keeping everybody attentive on the
new firm's purpose and working to accomplish it (Shaw, 2016). Every entrepreneur and
business owner is unique, thus there will be a wide range of entrepreneurial
motivational elements (Wang, 2019). However, the sources of motivation and inspiration
for prosperous businesses are comparable. Here are a few factors that encourage
company owners to not only start their own companies but also to persevere through
challenging times. A few of these are having more authority, originality, impact, and
independence.

Successful people are not always the sharpest; rather, they're the ones who keep up
with changing circumstances (Quatraro, 2015). As an entrepreneur and Virgin's founder,
by adjusting to the surroundings, Sir Richard demonstrates that he is prepared to
handle the difficulties he encounters and that he is open to fresh, cutting-edge concepts
for company success. Richard Branson possesses this crucial aptitude and quality as a
leader. Businesses have a decreased probability of surviving and expanding without
adaptation. Sir Richard’s progress goes more quickly because he was eager to learn. If
people don't take regular breaks, their bodies and minds won't be as productive since
they'll be worn out from the daily grind (Live&learn, 2018). Sir Richard utilizes his breaks
more effectively, taking time to sharpen the mind, rest, re-fuel and come back stronger.

3.1 Effectuation Theory

The entrepreneurial process, in accordance with effectuation theory, follows a logical
course and utilizes the resources at hand. Contrary to the traditional business process,
which has corporate owners first identifying the goal they hope to accomplish before
putting together the resources they will need to carry it out, the effectuation hypothesis
has business owners first identifying the goal they hope to accomplish (Karami, 2020).
Causal thinkers start by locating resources that will help them accomplish their
objectives. The resources acquired signify progress toward the goal; this is a linear
causality model. On the other hand, business owners that employ effectuation assess
the current goals and generate new goals from these resources (Wooliscroft, 2020).
This has the advantage of forcing business owners to operate within the limitations of
the resources at their disposal. A few key concepts can be used by entrepreneurs to
generate their chances. The bird-in-hand rule, which mandates that one must develop
solutions utilizing the resources that are now accessible, was the first rule she came up
with (Angelo, 2013). By employing what is already accessible to establish a new firm,
this notion can make it simpler to identify opportunities. Sir Richard took a decision that
gave his company entirely new and immense potential.

Businesspeople are encouraged to be adaptable and get ready for the prospect of
losses by the idea of an affordable loss. Only invest money that business owners can
afford to lose if a threat materializes. Risk-taking is the cornerstone of an entrepreneur's
enterprise. They can result in significant losses if handled incorrectly, thus one should
only invest money that can be swiftly recovered in the event of a loss (Martina, 2020).
According to the crazy quilt theory, one should only cooperate with people who can
provide them with new prospects and money (Dutta, 2022). According to the lemonade
principle, starting a business will inevitably involve blunders and unforeseen events, but
by learning from them, one might seize fresh chances (Hensel, 2020). An entrepreneur
should view difficult obstacles as a launching pad for bigger successes.
3.2 Trait Theory
Even though he struggled with dyslexia, Sir Richard had great confidence in himself and
dropped out of school to follow his love. He ran into a number of obstacles and, on
occasion, overheard remarks that he would never pass the class, but he never gave up
and kept improving his skills. According to the idea of attributes, a person develops a
set of leadership qualities naturally. Risk taking, a drive for success, an internal locus of
control, inventiveness, and entrepreneurial awareness are important personality traits
whereas education, know-how, and experience are significant human capital
requirements for entrepreneurial orientation (Espiritu-Olmos, 2015). Sir Richard took
great risks just to see his business succeed.

4.0 Type of Venture

Richard Branson started the Virgin Group. One of the world's most alluring brands,
Virgin, has expanded into a number of industries, including banking,
telecommunications, music, leisure, as well as travel and health (Galloway, 2019).
Richard started Virgin Records in 1970 after launching Virgin as a mail-order record
retailer. Virgin Records signed well-known bands like the Sex Pistols and The Rolling
Stones after signing Mike Oldfield, the first artist to release music under the Virgin
banner, with "Tubular Bells." (Virgin.com, 2022). More than 40 Virgin companies are
already active in more than 35 countries. With multiple world records, including the
shortest Atlantic Ocean crossing, several flights in oceanic balloons, and a kitesurfing
passage of the English Channel, Richard has pushed himself to the limit (Kapasi, 2019).

5.0 Barriers
Like everyone else, Sir Richard faced challenges when he tried to launch his business.
These include his fear of public speaking, his lack of business experience, his dyslexia,
the fact that he suffered academically, his propensity to get bored fast, his lack of
computer skills, and the fact that he is incredibly timid. He also struggles with these
factors because of his dyslexia. To start a firm, enormous sums of money are required,
but they are not readily available. Branson struggled to start raising money despite
working hard and being dedicated to his business; eventually, he was compelled to sell
virgin recordings. Each failure he had served as a learning opportunity and a
springboard for his success in the future. He entered several firms without hesitating,
which further exemplifies his passion of entrepreneurship.

5.1 Isenberg model

Promoting entrepreneurship has become a crucial aspect of economic development in
major towns and nations all over the world (Isenberg, 2014). The network of
entrepreneurship is currently the most well-known metaphor for encouraging
entrepreneurship as a strategy for economic development. But it shouldn't be shocking.

Source, Isenberg (2011)

6.0 Internationalization
Currently, the world is experiencing a period of a global economy, in which both existing
and new businesses are attempting to take advantage of the numerous opportunities
offered by the global market, including enormous markets, a sizable pool of workers,
and a wide range of goods (Mura, 2015). This process is known as internationalization,
which involves developing products that can be quickly updated to meet the needs of
clients from other locations. In order to raise worldwide competitive levels,
internationalization endures to play a important part in the evolution of the businesses
by boosting sales turnover and offering first-class products. A company can increase its
market share or extend its influence outside of its own nation by entering overseas
markets. We call this process internationalization (Dubravská, 2015). The globalization
of the economy, which is characterized by a highly interconnected state of economies
because of cross-border trade and finance, has been facilitated by the trend of global
corporations toward internationalization.

6.1 Born Global Entrepreneurs

The modern phenomenon Born Global originally attracted attention about 2
decades ago. As the world has grown more interconnected, a novel trend has been the
birth of born global firms. Multinational corporations are said to have been established
with the intention of changing the world (Alon, 2018). By selling to different nations from
their base, newly created global firms hope to achieve greater success on the global
market. Since it has evolved more quickly than the conventional strategy, most
emerging enterprises are beginning out on the global market. There have been a large
number of new global marketplaces created as a result of the favorable market
conditions that allow businesses to prosper (Paul, 2019). The companies' international
growth has benefited from technological development as well. Businesses frequently
employ technology to sell their products on a global scale. In contrast to the past, the
vast majority of enterprises nowadays are controlled online. With less need for regular
staff supervision, business administration has become simpler. Born global firms stand
out due to their worldwide roots, as demonstrated by management's global focus and
the allocation of specific types of resources to global operations (Shaffer, 2022).
Management of born global firms should be aggressive and make use of technical
improvements to ensure that their impact is seen across many nations. Born global
firms contrast the conventional strategy of joining the global market incrementally by
initially focusing on home market domination (Knight, 2016).

6.2 Stage Model

This stage theory uses five stages, domestic marketing, pre-export, experimental
involvement, active involvement, and committed involvement, to conceptualize the
process of internationalization. The most well-known and frequently applied strategy for
business globalization is the stage model. According to the stage model, after selling its
goods on the domestic market at first, the company expands to other global markets
(Hult, 2020). This model is presented using Uppsala model.

6.2.1 Uppsala model

The Uppsala Internationalization Model was developed by researchers who were

interested in the process of entrepreneurship internationalization (Forsgren, 2015). The
Uppsala model is one of the most often used conceptual models for how corporations
approach globalization. The business's dispersed international expansion results from
its sequential strategy. The argument's underlying tenet is that challenges with
internationalization result from a lack of information of the external market (Yamin,
2018). As a result, it suggests that a business first establish a reputation in its home
market before progressively deepening its involvement and expanding its financial
commitment. The business should proceed to the next stage if it is sufficiently aware of
the circumstances on the foreign market. Both over-all and market-specific data are
compulsory for the Uppsala approach, and market-specific acquaintance can be
acquired through actual market entry involvements. However, since memorization
cannot be utilized to teach it, the approach places a strong emphasis on experiential
learning (Vahlne, 2020). The following stages, which represent escalating levels of
global engagement and market commitment, have been identified as the four different
ways to enter a global market: not routinely exporting; exporting through independent
brokers; creating a foreign sales division; and creating manufacturing facilities abroad.
Source (Francis, 2018)

6.3 Benefits of internationalization

Over the past few years, the rewards of internationalization have been progressively
increasing. In the contemporary global economy, companies of all types are growing
abroad. Due to the rapid advancement of communication, transportation, and other
technologies, international trade has expanded to play a key role in the world economy.
A large chunk of capital is currently flowing internationally. If a country produces the
goods, inputs, or services, it can now trade them globally (Benito, 2016).

Gaining access to new markets is one advantage of global expansion. A company

ought to grow worldwide once it has found success domestically. Having access to new
markets may allow a business to grow its clients.

The search for specialist abilities within your own nation can be problematic.
Globalization, however, makes it likely to hire more people with particular skill sets
(Leask, 2021). If you have access to local people who possesses these talents, you will
also be at a distinct advantage over your competitors.

An important benefit of global development is accelerated company expansion.

International market entry allows establishments to grow more quickly. By intensifying
the business's global reach, more clients can access your product or service. Further
growth could result from this.
The ability of firms to offer trustworthy services to their international clients is one of the
factors driving global business expansion (Rygh, 2016). A corporation can lower
operating costs by shifting their activity abroad. Additionally, you can simply serve your
consumers who are in the same time zone by engaging residents who are acquainted in
the local language and culture. As a result, you may now communicate with a greater
global audience.

6.4 Barriers to the Internationalization

Even if there are many benefits, business owners nevertheless face difficulties when
they grow internationally. It would be reckless of us to ignore the difficulties that a
company can encounter while expanding internationally, even though doing so might
have many benefits. Some of the problems and risks brought on by globalization are
listed below.

Lack of operating cash to finance exports, a lack of personnel who are sufficiently
qualified, and informational limitations in finding and analyzing export markets are the
key obstacles to internationalization. Both internal and external factors may have an
impact on an organization's internationalization process (Mendy, 2020).

Establishing and leveraging distribution channels in global markets can be challenging

due to challenges in adapting distribution strategies to regional differences and
peculiarities as well as challenges in acquiring access to distribution channels abroad
(Pavlák, 2018).

Barriers relating to corporate policies and cultural differences can arise because
corporate policies and cultures vary from country to country. It is unsurpassed to have
some social training in both their commercial practices and social traditions if you are
intensifying to a country with a dissimilar commercial culture than your own (Schwens,
2013).

It could be challenging to enter new markets due to the risk of noncompliance. When a
company enters a new market, it must make the necessary changes and operate in
accordance with local laws (Baum, 2013). These laws might not even remotely reflect
those in your country. Therefore, it's crucial to work together with the appropriate
entities who will support your acquiescence efforts and assure that the right business
processes are applied as soon as possible.

7.0 Conclusion
Going global can provide your business access to a wide range of options. Trading
internationally can help your business grow and improve its success, profitability, and
success. International entrepreneurship continues to have a significant impact on the
expansion and growth of the world economy. International entrepreneurs are business
owners that relocate their operations outside of their home nations in pursuit of new
markets and opportunities for business advancement. The chosen case study for the
international entrepreneur is Sir Richard Branson. The Uppsala and its benefits as well
as the negative effects of globalization were also covered in this study.
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