2: How do we precisely define an international start-up? 2.1 Relevance When investigating the effect internationalization has on new ventures it is crucial to first clarify what exactly is being examined, therefore I will start this thesis by defining these terms. Only before defining these terms I will first describe the two dimensions this research primarily exists of; entrepreneurship, and international economics. 2.2 Defining entrepreneurship Entrepreneurship has been subject of much economic research over the past decades. However, a universal definition of this subject is missing. The terms entrepreneurship or entrepreneur can be interpreted in various ways depending on the interest and background of the reader. Historically entrepreneurship has been associated with innovation, market entrants, small businesses, flexibility and creativity. According to Schumpeter’s theories, entrepreneurial firms are responsible for changing the shape and scope of markets with the introduction of revolutionary new products. (Schumpeter, 1912) The neo-classical school stresses entrepreneurial firms’ capabilities to efficiently exploit market opportunities created by the changing of markets. Thus where Schumpeter explained the role of entrepreneurs as creators of change in markets, the neo-classical school emphasized the entrepreneur’s capabilities of recognizing and perceiving opportunities created by these changes in the market. More recently, economists and other social-science academics have broadened the term entrepreneurship by including: process of creating or seizing an opportunity and pursuing ‘the it regardless of the recourses currently controlled’ (Timmons, 1994). From this broadened definition an increasing number of economic agents have started to refer themselves as entrepreneurs. Examples are terms such as the social- or corporate entrepreneur.
2: How do we precisely define an international start-up? 2.1 Relevance When investigating the effect internationalization has on new ventures it is crucial to first clarify what exactly is being examined, therefore I will start this thesis by defining these terms. Only before defining these terms I will first describe the two dimensions this research primarily exists of; entrepreneurship, and international economics. 2.2 Defining entrepreneurship Entrepreneurship has been subject of much economic research over the past decades. However, a universal definition of this subject is missing. The terms entrepreneurship or entrepreneur can be interpreted in various ways depending on the interest and background of the reader. Historically entrepreneurship has been associated with innovation, market entrants, small businesses, flexibility and creativity. According to Schumpeter’s theories, entrepreneurial firms are responsible for changing the shape and scope of markets with the introduction of revolutionary new products. (Schumpeter, 1912) The neo-classical school stresses entrepreneurial firms’ capabilities to efficiently exploit market opportunities created by the changing of markets. Thus where Schumpeter explained the role of entrepreneurs as creators of change in markets, the neo-classical school emphasized the entrepreneur’s capabilities of recognizing and perceiving opportunities created by these changes in the market. More recently, economists and other social-science academics have broadened the term entrepreneurship by including: ‘the process of creating or seizing an opportunity and pursuing it regardless of the recourses currently controlled’ (Timmons, 1994). From this broadened definition an increasing number of economic agents have started to refer themselves as entrepreneurs. Examples are terms such as the social- or corporate entrepreneur.
bachelor_thesis_Veldman_Ronald.docx