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International entrepreneurship is a term that refers to the process by which a business might generate products and services that are valuable outside of its existing local market in order to gain a competitive edge (Reuber et al., 2018). International entrepreneurship (IE) study is based on the premise that internationalisation is an entrepreneurial habit focused on identifying, enacting, evaluating, and utilising possibilities across national borders in order to create value and gain a competitive edge. On the other hand, international business is the cross-border exchange of commodities, services, technology, capital, and/or knowledge on a worldwide or transnational scale (Buckley, Enderwick & Cross, 2018). It entails the exchange of products and services amongst two or more nations.
The report in its subsequent section will elaborate details regarding the interesting and innovative business idea's description and specification, international target market and customer segment, networks and risks, finance alternative analysis and route of internationalization. The relevance of IE within the contemporary context of IB is a huge one: entrepreneurial firms contribute significantly to socioeconomic progress not just on a national level, but also on a worldwide one. Additionally, one of the most critical characteristics of entrepreneurship is that it offers employment opportunities, which has a positive effect on international populations, this will also be illustrated in the subsequent segments.
This report revolves around the fact that entrepreneurship is vital since it has the ability to enhance economic performance and improve revenue, not only for entrepreneurs, as well as for associated firms. Entrepreneurs also influence to change through creativity, as new and upgraded products enable the growth of new markets.
Business Idea
Description and Specification of the innovative and creative business idea
Intimate care and hygiene is still considered taboo. However, self-care and grooming are critical. Despite rising female literacy rates in rural and urban regions, poor hygiene behaviours during menstruation and elsewhere persist among women of all ages. Such subjects are either spoken in quiet tones using metaphors or are just avoided. To solve the issue effectively, the venture has thought about the necessity to understand how cleaning works. Just as the digestive system includes beneficial bacteria, the skin and lining of a woman's vaginal area also contain beneficial bacteria that produce acid. This acid promotes a healthy interior environment and inhibits the growth of pathogenic bacteria. Proper knowledge is critical for understanding women's varied cycles, including menstruation. Inadequate knowledge and hygiene practices during periods can result in the emergence and expansion of bacteria in the vaginal area, which can have undesirable consequences (Chen et al., 2017).
Not only that, women frequently use hair removal treatments such as shaving, which further contaminates the private parts. While the vagina is a self-cleaning organ, utilizing cleansers that include harsh chemicals can irritate it. However, using intimate shampoos and hair oils could help alleviate the burning feeling, rashes, post-shave bumps, and itching, as well as treat pubic hard ingrown hairs and eliminate odour. Using soaps can exacerbate the problem since some soaps can upset the pH balance of the vagina by removing beneficial bacteria called lactobacilli. The venture comprehends that women should priorities intimate hygiene regardless of their life stage or age.
Improper treatment can result in a variety of vulva infections, the most common of which is 'vulvovaginitis,' which is triggered by a variety of bacteria. Washes and other intimate hygiene products assist maintain a healthy vaginal pH level, reducing itching and bacterial infections in the vaginal area. Additionally, it aids in the growth of the beneficial bacteria lactobacillus. For this reason, they have thought about launching an application that will extremely aid in understanding intimate care and proper knowledge regarding the procedures and methods.
Unique features of the idea
The USP of the business is that they have thought of launching an application that would be a women health-centric one to take care of the hygiene of women of all ages; from budding teens to women who are past their prime. The company decides to name its company Sophrosyne as it is a state, a concept, a virtue, a collection of qualities that combine to form the ideal character; it is exercising self-control, self-knowledge, forethought, and being slow to anger, exercising restraint, exercising reason, and according to St. Thomas of Aquinas, sophrosyne is the fourth and final cardinal virtue (Kaempf & Dirksen, 2018). When all of the above are combined, they produce a life of serenity, tranquilly, and contentment. The venture has also been thought to include psychological help related to the issues that occur with intimate health care, menstruation and even menopause.
Teens while having their first-time menstruation face several mental issues as well as women who encounter menopause. These people face tremendous psychological problems through these phases. That is why this app not only thought of approaching women of all ages to assist but to be with them at the phases of their life where most they feel uneasy, broken or uncomfortable to share these issues with anybody- even to the doctors.
The venture has thought of designing the app in such a way that in every step of every search related to their menstruation, menopause or intimate care-related issues, they will get assistance from a gynae. It can be a pre-recorded video regarding the subject, an audio or an article.
iii. Entrepreneur’s personality traits:
The entrepreneur of this business is well renowned as he internalizes the traits of flexibility, passion for the venture, creativity, self-motivation, tenacity and persuasiveness which will abundantly help him succussing and enhance the business venture (Kerr, Kerr & Xu, 2017).
Business opportunities-discovery versus creation:
Discovery and creation theories analyze the origins of competitive flaws differently. In discovery theory, defects are thought to be exogenous, arising from changes in technology, customer preferences, or other contextual factors. In creation theory, entrepreneurs act and watch how consumers and markets react to their actions. By acting, these entrepreneurs create opportunities that would not have existed otherwise. Entrepreneurial opportunity is a social construction based on entrepreneur perspectives.
Both views acknowledge that market or industry defects create opportunity. According to creation theory, a blind-variation – an activity that arises without cognitive planning or foresight – can start a chain reaction that leads to new opportunities. Entrepreneurs' initial perceptions about opportunity change as they act on them and witness market reactions. The entrepreneur's beliefs can become social constructions that govern the activities of these entrepreneurs and others affiliated with industry or market as they begin to act to create opportunities. Enacting an opportunity generates information and knowledge, which is important in these theories (Smith, Moghaddam & Lanivich, 2019). In this regard, it can be said that the venture- Sophrosyne can use the factors of the two theories to excel in their business venture as these two theories conceive a range of aspects which has the deed of accomplishment.
Early rapidly internationalizing small firms:
A successful firm enters foreign markets and decides to go global, converting domestic businesses into Multinational Enterprises (MNEs) and increasing sales and brand reputation (Neubert, 2017). An MNE has its headquarters in one nation, but its output and operational processes are spread across several countries to take advantage of cheap labour, raw resources, tax breaks, and protectionist obstacles.
Sophrosyne can make critical entry decisions due to significant risk and uncertainty before entering a foreign market is which market to enter. Understanding the economic and political aspects that influence the appeal of a foreign market will help it (Ciravegna et al., 2018). It is also important to consider the market size in terms of demographics, consumer purchasing power, and future growth projections. Sophrosyne will first start its operations in the USA as headquarters being in Washington D.C., after achieving success it will then look for partnerships with big healthcare firms of other nations and expand its business over the countries to build to be big healthcare IT firm concentrating on women healthcare in terms of their menstruation, intimate care, menopause and psychological issues related to that.
International target market and customer segments
Sophrosyne falls under the “Healthcare information technology” industry. It is the process of designing, manufacturing, developing, implementing, and managing healthcare information systems. Automatic and interoperable healthcare information systems decrease costs, improve medical care and public health, boost efficiency, and raise patient satisfaction. The US Health Care Information Technology (HCIT) industry is estimated to reach $149,178 million by 2025, growing at an 11.7 percent compound annual growth rate (Lee et al., 2018).
The growing demand for improved patient safety and care, together with government initiatives to promote HCIT, are propelling the US healthcare IT industry. With so many significant local and foreign enterprises involved in the HCIT market, there is a significant supply and demand imbalance. This is expected to result in a slowing of market growth. Additionally, numerous large corporations have partnered with small businesses to develop profitable goods. Product, end-user, and geography are all market segments.
global market:
Today's healthcare industry developments include innovative technologies and solutions that address clinical diagnosis, therapy, and disease management requirements. The global COVID-19 pandemic accelerated the development of technologies for patients. The healthcare business has made strides in areas such as e-consultations, telemedicine, real-time diagnosis, and access to digital therapies using immersion technology tools. Precision medicine is enabled through genetic analysis, clinical data storage, and big data and analytics.
Sophrosyne will become crucial as tit will implement artificial intelligence (AI), the internet of things (IoT), and data management methods. These solutions improve workflows and staff scheduling, as well as connect infrastructure, devices, and systems, all of which contribute to the acceleration of accurate and equitable healthcare services (Takayama, 2021).
Opportunities:
Nowadays, healthcare is about more than access, quality, and cost; it is also about predictive, proactive, and outcomes-based care models that promote social and financial inclusion. Rising pricing pressure and the healthcare industry's shift away from volume-based care toward value-based care require pharma and device manufacturers to raise their business strategies beyond items and toward customer-centric intelligent systems and solutions. The healthcare market would continue to shift toward a value-based approach. Sophisticated outcomes-based models will be implemented in developed markets while emerging economies will adopt best practices tailored to their circumstances.”
Changes:
In 2021, the most promising health technologies include artificial intelligence (AI), blockchain, voice commands, chatbots, and virtual reality (VR). For the longest time, healthcare IT has lamented the absence of technology stacks and techniques that help true marketing customization (Oztekin, 2018).
iii. customer segmentation:
The venture has thought of targeting the customers who are women, from the age of thirteen to fifty-five who face the issues regarding intimate care, intimate hygiene, menstruation and menopause.
Business model canvas:
Sophrosyne’s Business Model Canvas
Key partners
· Hospital
· Patients
· Insurance companies
Key activities
· App-based platforms development
· Linking to doctors for network
Value proposition
· Facilitates transfer of medical reports to doctors.
· Book appointment with doctor
· Simplified payment procedures
Customer relationship
· Provide an in depth understanding of their problems
· Provides strategies to mitigate psychological and physiological issues related their intimate care
Customer segment
· Women of all ages.
· Women who know little about intimate hygiene.
· Women who feel psychological challenges dealing with menstruation, menopause and intimate care.
Key resources
· Software development
· Security qualities
Distribution channels
· App store
· PC software
· Mobile software
Cost structure
· Sales marketing
· Ongoing maintenance
Revenue streams
· For basic information, the app will be free to all.
· For direct checkups, the app will take revenue from the users.
Networks
The role of networking
Business networking is a powerful tool for the advancement and professional success of Sophrosyne. An excellent network can help improve the success and safeguard the viability of the business (Neneh, 2018). The value of business networking cannot be overstated. Networking is the act of keeping a professional and personal contact list to help advance in the business venture. The network is composed of all of the people the venture connects with and who may be able to help professionally. To build and sustain a useful network, Sophrosyne must actively seek out opportunities for growth.
Networking will give Sophrosyne access to opportunities to develop professionally. A single contact possesses the possibility of arranging meetings or interviews with numerous companies. Knowing how to use networking properly could save Sophrosyne time, effort, and stress. These connections can lead to recommendations, employment prospects, mentoring, and practical training. A proper network associated with the business will lead to knowing workers' backgrounds, roles, and career objectives. And help in building a strong basis on which the international business will thrive.
Means of networking
Face-to-face networking opportunities exist at social events, conferences, and industry organizations. Additionally, the company can use online sites like LinkedIn and Facebook. The more networking opportunities they will have, the more the firm will benefit (John et al., 2020).
It will share weak ties with sessional media partners who will promote one post or content of them but they will share strong ties with Instagram, Facebook and local media partners who will be inextricably linked to its success and growth.
Risk
IP Risk
Whenever a company gets involved in foreign finance, it undertakes associated risk in consideration for possibilities. IP infringement, political, regulatory country and currency risks are some of the hazards connected with enterprises participating in international commerce (Hoke, Marada & Heinzová, 2019). These problems might make it extremely difficult for businesses to sustain consistency and expect predictable income. Intellectual property can cover a wide variety of issues, including trademark and business image, as well as items, services, and methods that define a firm's offering. When these principles are used without approval, a firm may suffer. Almost all businesses have benefited from the internet, which allows products, thoughts, and marketing materials to connect a vast number of people at a low cost - but it has also increased the prospect of corporate espionage. Businesses of all sizes are susceptible to experiencing their independent ideas, commodities, or activities infringed upon, even if they operate globally, therefore emphasizing the importance of intellectual property rights is critical.
Intellectual property is secured by the law and encompasses anything developed and unique (Cavusgil etal., 2014). Entrepreneurs can protect the core idea of their business and intellectual property laws function to safeguard their creations from third party users who would exploit those for financial gain or personal advantage (Terjesen, Hessels & Li, 2016). This can become a substantial problem for the chosen venture as well as the international market is corrupted and business ideas get easily stolen by unethical individuals. For instance, the brand name Sophrosyne might get unethically used by other market players without consent or authorization which will reduce the brand reputation and decrease the overall value in the international market.
Mitigation Strategy:
In order to protect the business idea, Sophrosyne can select any of these below-mentioned methods. These are all Intellectual Property securing methods, there are different types of IP,
Trademark-Trademark protects a brand name, logo or any associated image that represents a brand (Hoke, Marada & Heinzová, 2019).
Copyright- Any artistic, literary or other types of contents are usually protected by the copyright.
Patent – Patents are usually used to protect a specific invention or unique idea. These ideas are not disclosed publicly without the patent application.
Trade secret- Methodologies, designs, compositions, scripts, gadgets, techniques, strategies, or practices are examples of data that can be protected as a trade secret (Hoogendoorn, Van der Zwan & Thurik, 2019). Customer databases and production techniques are two instances of trade secrets. The data’s monetary worth might be accurate or prospective.
NDA- Before exposing confidential data to any of the partners or personnel, having them complete a non-disclosure contract is essential.
Country Risks
Country risk indicates the uncertainty involved with investing in a particular nation, and more particularly, the extent to which such uncertainty may result in significant losses. Volatility can be caused by a variety of reasons, particularly governmental, financial, exchange-rate, and technical impacts (Amankwah-Amoah & Wang, 2019). Country risk, particularly, signifies the volatility that a foreign state would default on its assets or other financial arrangements, hence raising transfer risk. Country risk, in a wider context, refers to the extent to which political turmoil impact the assets of companies doing trade in a certain nation.
Often, national banks of a country might bring about a change in the currency arrangement and trade system disrupting a specific foreign company’s existing business strategy (Hoogendoorn, Van der Zwan & Thurik, 2019). Sometimes political unrest affects a business massively which creates temporary or consistent business disruptions. These risks are sovereign, economic and governmental which hinders the operations of an international business.
Mitigation Strategy:
There are a range of simple and adaptable strategies to manage and deal with the issues:
The relationship with the local businesses and partners is necessary
Creating proper negotiations with the local vendors are essential to deal with any kind of economic conditions
Having a plan B is an integral strategy
Political risk insurance is another potential method that will secure investors, investment firms, and multinational corporations from financial loss due to incidents such as confiscation, internal or external political turmoil and terrorism (particularly war and conflict), asset repatriation, and public debt failure.
Currency Risk
Currency risk is a type of issue in business transactions that stems from the market turmoil or rate fluctuations of one currency vs another. This is a lengthy hazard that may remain as long as currencies are employed as a means of payment in commercial transactions (Hoogendoorn, Van der Zwan & Thurik, 2019). Market volatility in comparative currency values will remain to capture the interest of exporters, manufacturers, investors, bankers, traders, and policymakers. A partnership is signed during a business in foreign currency, and the corporation estimates a price for the items based on an acceptable exchange rate. Financial circumstances, on the other hand, can derail even the best-laid strategies. As a consequence, the organization would preferably like to have a strategy in place for dealing with such issues.
Mitigation Strategy:
Researching the market and currency patterns of the nation before investing
Working within the trading range determined on the basis of evaluation, that is what range of the trading rate is best suited for the business and which is cost-effective
Hedging offers certainty to expected investments by enabling an entrepreneur to establish the purchase price while minimizing the future impact of exchange rate fluctuations (Cavusgil etal., 2014). If they have international assets, it is reasonable to keep the exchange rate risk ‘unhedged’ when the national currency depreciates against the currency of the international investment currency. If contrarily the local currency is strengthening in comparison to the foreign-investment currency, then one should hedge the risks to reduce future economic loss.
Finance Alternative Analysis
Venture Capital
Venture capital (VC) is a sort of private equity and a kind of funding provided by investors to startups and small firms that are thought to have protracted development prospects. Venture capital is often provided by large investors, financial firms, and other financial organisations. It does not, though, necessarily take financial shape; it might also take the shape of technological or management skills (Bonini & Capizzi, 2019). Venture capital is often distributed to small businesses with extraordinary growth prospects, or to businesses that have developed rapidly and are ready to expand further. The fundamental benefit of venture capital investment is the opportunity to expand a firm that would not be attainable with bank loans or other techniques. This is critical for start-ups with little operational history and significant initial expenses. Contrary to that, VC has drawbacks such as the fact that it frequently involves huge amounts of cash, the currency exchange can take a while, and entrepreneurs must contemplate and work through constraints. Furthermore, they may insist that specific criteria be reached before funding.
Bank Loans
A bank loan is a type of credit instrument in which a sum of money is granted to another organization in exchange for the loan's value or principal sum being repaid in the future. In several cases, the lender will add interest and/or funding expenses to the principal balance, which the borrowers must refund in addition to the original sum (Mainela, Puhakka & Sipola, 2018). Loans might be for a specific, one-time amount or for an open-ended credit agreement with a maximum allowed. Loans are available in a variety of types, including secured, unsecured, corporate, and private loans. Bank loans are important sources of funding for international business exp0ansion. However, bank loans have also some major advantages and disadvantages. For instance, a bank loan provides the business flexibility and does not have any direct participation in the equity. It does not set out any guideline on the investment approaches like the venture capitalist.
While venture capitalists are willing to take chances in terms of investment in firms that have not yet proven lucrative, banks will not. In order to be approved, the business must be continuously productive, which rules out the great majority of entrepreneurs. Acquiring a bank loan takes a significant amount of time. Businesses will have to fill out a lengthy process, and the conditions of the loan will be complex (Mainela, Puhakka & Sipola, 2018). The procedure will also not be rapid; it might take many months to apply for and get funding from a bank. Bank loans are among the most challenging to get when compared to other modes of funding.
Upon comparison, it is found that venture capital will be the most viable solution for the selected business that will allow the company to get the required amount of funding without much constraints of liability.
Route of internationalisation
The world market for women’s health apps is anticipated to reach USD 8.9 billion by 2028. From 2021 to 2028, the market is estimated to grow at a CAGR of 19.0 per cent. Growing health app acceptance, rising frequency of specific ailments, and high smartphone usage are projected to drive market development throughout the projected timeline. Market participants are launching software that focuses on a certain component of women’s health (Li, 2018). The provenance and need for women health care services have necessitated the launch of several advanced mobile applications. Therefore, the need is spread across the globe. Especially for women living in an underdeveloped and developing country where women are living with financial constraints and lack of access to public health care catered to women. The selected venture, Sophrosyne can select a specific internationalization strategy that will allow the company to expand while accomplishing its intended objectives.
Born Global
A born global business is one that implements a strategic vision from the beginning of its activities and rapidly globalizes without any preceding long-term localized or internationalization period. There are two types of born global startup companies: "export/import startups" and international startups, the latter of which, however unlike former, contains numerous processes spread across multiple countries (Paul & Rosado-Serrano, 2019). Born global enterprises are often relatively small, technology-oriented organizations that have functioned in international markets from their start.
.
Uppsala Model
Johanson and Vahlne research aim to explain OFDI operations through the intellectual perspective and situational proximity. Businesses evolve from more familiar foreign surroundings to less familiar foreign endeavours (Vahlne, J & Johanson, 2017). Although the first stage involves expanding into neighbouring countries before moving on to more distant market segments, the subsequent period starts with exports, progresses to preliminary overseas trade-in sales subsidiary companies, and culminates in fully formed facilities in other countries.
Sophrosyne can use the Born Global model for its international expansion as it will get the opportunity to increase its scalability directly to the international market.
Conclusion
The present report has demonstrated the processes associated with an international entrepreneurial venture which intend to increase its business scalability on a global market. The report has been constructed to initiate a set of coherent conceptual nuances associated with an international business venture. It has attempted to produce a unique business idea that is internationally viable and is anticipated to cater for the need of the global population simultaneously. The present report has selected the area of women health care facility segment which has constantly emerged as a global concern. The venture is a health IT-oriented service mobile application that will cater to the requirements related to the gynaecological concerns of women.
In order to develop the core processes and illustrate different issues related to the advancement of the business, the report has laid out a comprehensive construct that includes the business idea, target market segments, networking criterion, risks, financing approaches and alternatives and internationalization practices with a theoretical explanation. In a nutshell, the entire research has attempted to focus on the core aspects of an international entrepreneurial venture to elaborate on the integrated constraints and possible solutions in terms of global expansion and development.
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