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Over the years, development economists have come to a conclusion that vast opportunities lay at every corner of the globe and demands only careful consideration and evaluation to effectively conquer and succeed (Greene, 2007, pp. 61-62). Currently, most of the countries are organized into regional and sub-regional economic agreements that are meant to ensure better cooperation via mutual benefits returns. Though this is not greatly developed in the third world countries, there is great potential to reap from the present mergers.
Economic cooperation offers an effectively serene environment for investment to ensure much higher levels of success by the entrepreneurs.
To add to that, they offer dispute resolution mechanisms that assist in stabilization of the governance systems and policies articulation. Unlike the developing nations, most of the developed countries have well established and efficient cooperation. European Union acts as a major platform for supporting entrepreneurs in their ventures. It opens windows or them to operate in all the member states with minimal restrictions on goods, capital and human labor movement between them (Ashton, 2007, 27-28).
Bygrave & Zacharakis (2008, pp. 44-45) notes that over the last two decades, international demands for goods and services derived from the fast changing consumerism patterns forms the key to success for major business enterprises. Due to availability of vast choices for the consumers at the local and international levels, it is clear that there is great potential of different nature in the developed and developing economies. Most of the developed countries are geared towards global quality irrespective of the prices offered for the goods.
After establishment, Dell Company managed to capture and grow with speed to become one of the largest companies dealing with computers and software due to high quality of its products. To add to that, many investor are relying on e-commerce for their purchases and delivery to their doorsteps. In contrast to this, most of the developing economies opportunities are based on provision of low price goods and services. After establishment, Tiger Airways in Singapore offered low cost travel services to its consumers which yielded vast returns and growth.
The airline is currently one of the most effective and successful in south East Asia. To add to that, China entrepreneurs have colonized most of the South East Asian markets due to its highly available low price goods and services (Kuratko & Hodgetts, 2007, pp. 63). Notably, most of the developing economies are fast shifting towards the western consumerism patterns. Threats Competition The main reason for investment is growth and maximization of profits to the entrepreneur/s. However, competition in majority of the fields have posted major threat which has seen many entrepreneurs withdraw or fail in their plans altogether.
Most of the economic opportunities in the developed countries are usually met with strong counter measures by the already established companies in the area of specialization (Baron & Shane, 2008, 39-40). As new entrants get into the market, the established firms see possible sharing of consumers, reduced sales, and possible company hardships in future. Coca Cola Company has over the years used massive strategies to suppress new investors in the line of soft drinks to reduce competition.
The current high competition in the US motor industry has completely sealed new entrants to that type of business. This has made Ford, GM, Honda, and Toyota to remain as the traditional companies in the line of motor industry. On the other hand, most of the developing countries have low levels of competitive consideration by investors in most of the fields. Due to the large population that has been less exploited, new investors easily find effective niches that are less suppressed (Casson et al, 2006, pp. 46-47). Government stability
Governments’ stability over time acts as the main icon upon which auxiliary affiliations are established globally, most of the smaller economies have posted the worst threats to investors due resilience of war and its repercussions. In Zimbabwe, entrepreneurial considerations lags very low due to poor governance that has crippled the people’s buying capacity with a large margin and inflated the currency with over 10 million percent (World Bank, 2008, pp. 44-46). In Thailand, most of the people embark of day long confrontations with the Government in demand for democratic environment of business operations and overall coexistence.
This has been a major scare and a possible deathbed to investors in the country. Democracy is very young in most of the countries which makes them to have greatly reduced capacity to entice investors. On the other hand, developed countries have achieved much higher levels of democracy where entrepreneurs are the most respected people due to their massive contribution. Due to the need for effective entrepreneurial activities, the EU and South East Asia have emphasized on the need for stability in their regions (United Nations Development Program (UNDP), 2008.
pp. 120). To the governments, it is able to predict increase in revenue and thus effectively plan for it. To the entrepreneurs, it is possible to focus on growth and sustainability of the enterprise. Conclusion As indicated earlier, entrepreneurs are risk takers and rely on the windows of opportunities to colonize and progress effectively. As a result, they should consider and analyze their prevailing situation to ensure that they use the best alternative methods in their entrepreneurial considerations.
They should embrace modern technology to introduce new goods and services to the consumers both in the developed and developing countries. With technology, it is possible to articulate vast great ideas with minimal costs. To add to that, they should consider amalgamation and international outsourcing for support their investments. They should capitalize on the existing regional and international cooperation as major platforms for availing funds, negotiating for better trade terms, and external market orientation.
Finally, entrepreneurs should consider investing in regions with higher levels of government stability as part of their guarantee for progress.
Ashton, R. 2007. The entrepreneur’s book of checklists: 1000 tips to help you start and grow your business. (2nd ed). New York: Pearson/Prentice Hall Business Baron, R. A. , & Shane, S. A. 2008. Entrepreneurship: A process perspective. (2nd ed. ). Mason, Ohio: Thomson/South-Western Bernasconi, M. , Moensted, M. , & Harris, S. (Eds. ). 2006. High-tech Entrepreneurship: managing innovation, variety and uncertainty.
London: Routledge. Bygrave, W. D. & Zacharakis, A. 2008. Entrepreneurship. Hoboken, N. J. : Wiley. Casson, M. et al. (Eds. ). 2006. The Oxford handbook of entrepreneurship. New York: Oxford University Press New York. Greene, C. L. 2007. Exploring entrepreneurship and economics. Mason, Ohio: Thomson/South-Western. Kuratko, D. F. , & Hodgetts, R. M. 2007. Entrepreneurship: theory, process, practice. (7th ed. ). Mason, Ohio: Thomson South-Western. Sim, H. C. M. 2006. Entrepreneurship in practice: a practical guide. Singapore: Pearson/Prentice Hall.
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