In many ways, entrepreneurs are ideally suited to this more interconnected, complex world.
How are the world’s best entrepreneurs responding to the forces of globalization?
With interviews from nearly 300 entrepreneurs from around the world, we examine how today’s successful entrepreneurs are navigating the global business landscape.
Globalization has been good for me
Globalization has, without doubt, been a hugely positive force for entrepreneurs.
By enabling capital, labor, goods and technology to flow freely across borders, it has increased exponentially the commercial opportunities that are available. However, it has also vastly increased the complexity of the business environment, multiplying both risks and opportunities.
This highly uncertain environment is one in which the entrepreneur naturally thrives. Indeed, a strong argument can be made that entrepreneurs now have a substantial advantage over more traditional multinationals, whose governance, decision-making and stakeholder relationships impede quick reactions to new external stimuli.
The coming decade is set to be a golden era for the globally agile entrepreneur.
Today’s entrepreneurs are ideally suited for global complexities
After talking with 300 former EY Entrepreneur Of The Year® winners, here’s what they told us about the current business environment:
- Agility and cultural diversity run circles around established multinationals. In a more globally connected world, entrepreneurs are looking to outdo established multinationals by building globally agile businesses that respond more quickly to change and opportunity. An internationally experienced management team with an ability to understand and adapt to different cultures will be a key ingredient of success.
- Many roads lead to growth. The world’s best entrepreneurs are not likely to waste the shake-up of the economic downturn. While many multinationals see a downturn as a time for caution, organizations with an entrepreneurial mindset are planning international expansion and seeking M&A deals in new markets around the world.
- Competition spans the globe. Fast-growing businesses from the emerging markets are set to challenge the established Western leaders. As new competitors enter the scene domestically and internationally, the world’s best entrepreneurs are responding with greater innovation to ensure that they can rise to the challenge of the new competitive landscape.
- Innovate, innovate, innovate. Greater involvement of clients and suppliers and a focus on supply chain innovation are helping entrepreneurs stay ahead of the curve. However, a more decentralized approach may offer opportunities to learn from the more progressive multinationals, which are already developing products and services in their fastest-growing markets.