Vital skills and challenges for global entrepreneurship

Harmeling said that entrepreneurship itself isn’t too different in global contexts, but that  understanding different cultures and people is vitally important.

“My mentor, Howard Stevenson, from Harvard Business School, talked about how important it is in your own context to find what he called your unfair advantage,” she said. “The idea of an unfair advantage is your knowledge of the people, the customs, the culture, the likes and dislikes when you’re dealing with another culture.

“Look around you and understand the culture in your own context, and capitalize on the knowledge.”

Other key skills include:

    Adaptability and resilience: The global business landscape is unpredictable, with political, economic, and social shifts. Successful entrepreneurs remain adaptable, using challenges as opportunities to innovate and grow. 

“Be willing to accept constant failure and rejection,” Harmeling said. “If you're afraid to hear the word ‘no’ or afraid to have things go wrong, which they will on a daily basis if you're an entrepreneur, then it's probably better to get a 9-to-5 job.”

    Digital and technological proficiency: Technology plays a significant role in bridging geographical gaps. Entrepreneurs must embrace digital tools for communication, marketing, and operations. This includes leveraging social media, e-commerce platforms, and digital payment systems.

Use data analytics software to track consumer behavior, e-commerce platforms, and cloud-based collaboration tools.

    Financial acumen and risk management: Managing finances across currencies, tax systems, and economic climates can be complex. Entrepreneurs must understand foreign exchange risks, compliance regulations, and local financing options.

Entrepreneurs should understand such areas as trade agreements, tariffs, international tax codes, and the like.

    Legal and regulatory knowledge: Operating globally requires a deep understanding of international trade laws, intellectual property rights, and local business regulations. Non-compliance can lead to costly setbacks.

Focus on import-export regulations, licensing, and franchising laws. Also understand intellectual property protections in different countries.

    Market research and analysis: Understanding global markets is critical. This involves identifying customer needs, evaluating competitors, and assessing potential risks. To do this, conduct comprehensive market research, use local consultants for on-the-ground insights, and stay updated on global market trends. 

Entrepreneurs must adapt their strategies to fit local demands while maintaining their brand identity.

    Networking and relationship building: Global entrepreneurship thrives on strong networks. Building relationships with stakeholders, suppliers, and customers in different countries fosters trust and long-term success.

Entrepreneurs can do this by attending international conferences and trade fairs, joining global entrepreneur networks and associations, and using platforms where professionals gather worldwide, like LinkedIn.

    Social responsibility and ethics: Global entrepreneurs are increasingly expected to prioritize social responsibility and ethical practices. Consumers and partners value businesses that contribute positively to society and the environment.

“Ethics and morals and understanding of laws are important when doing business globally,” Harmeling said.

Also read: 3 traits of successful market-creating entrepreneurs

Current trends in global entrepreneurship

Global entrepreneurship evolves constantly, driven by technology, consumer behaviors, and socio-political changes. Entrepreneurs should stay ahead by recognizing and leveraging these trends:

    Blockchain and cryptocurrencies: Blockchain technology enhances transparency and security in global transactions, while cryptocurrencies enable businesses to bypass traditional banking systems. “Crypto is certainly on the rise now,” Harmeling said. “With this incoming [Trump] administration touting crypto, we'll see if that trend continues or if the volatility of the past resurfaces.”

    Cross-border e-commerce: Platforms like Amazon, Alibaba, and Shopify empower entrepreneurs to sell internationally with minimal barriers. The demand for seamless shipping and localized customer service continues to grow.

    Rise of digital nomadism: Entrepreneurs and employees increasingly work remotely from various parts of the world, leading to opportunities in co-working spaces, digital tools, and cross-border business services.

    Sustainability as a core value: Eco-friendly products, green energy, and carbon-neutral operations are no longer optional but expected by consumers and investors. “As climate change and the effects of it accelerate, there's going to need to be more innovation around sustainability,” Harmeling said.

Current challenges in global entrepreneurship

While global entrepreneurship offers immense opportunities, it also comes with unique challenges:

•     Cultural missteps: Failure to understand cultural differences can lead to marketing errors, strained relationships, or failed negotiations.
•     Cybersecurity risks: Operating globally increases exposure to cyberattacks, requiring businesses to invest heavily in cybersecurity infrastructure.
•     Economic instability: Fluctuating exchange rates, inflation, and economic recessions in key markets can disrupt operations and profits. “The geopolitical environment right now certainly is volatile,” Harmeling said.
•     Political and regulatory barriers: Trade wars, sanctions, and ever-changing regulations in different countries make compliance a daunting task.
•     Supply chain disruptions: Global supply chains are vulnerable to geopolitical tensions, pandemics, and climate-related events, which can delay production and delivery.
•     Talent acquisition: Finding and retaining skilled workers in multiple countries is challenging due to differences in labor laws, compensation standards, and workplace cultures.

Get an advantage in global entrepreneurship

To thrive as a global entrepreneur, you must master vital skills, embrace key concepts, and stay adaptable to trends and challenges. By doing so, you can unlock the potential of international markets and create lasting impact on a global scale. The journey may be demanding, but with the right knowledge and strategy, it promises unparalleled rewards.

“Somebody who understands the regulatory environment and the other things we’ve discussed, they're going to have an advantage, to their benefit,” Harmeling said.