Professor Brian Butler. Class at university FBV in Recife Brazil

1. Global Entrepreneurship
Developing Global Mindset for
Entrepreneurs

2. Brian David Butler
Teaching:
Brian Butler is currently a professor with Forum-Nexus,
which is co-sponsored by the IQS Business School of the
Ramon Llull University in Barcelona, and the
Catholic University of Milan. He teaches classes on
International Finance and Global Entrepreneurship in
brian.butler@forum-nexus.com Europe every July and January.
briandbutler@gmail.com
LinkedIn/briandbutler
Skype: briandbutler In Miami, Brian has taught Finance, Economics and Global
Trade at Thunderbird’s Global MBA program in Miami.
He previously worked as a research analyst at the
Columbia University Business School in New York
City.

3. Brian David Butler
International:
A global citizen, Brian was born in Canada, raised in
Switzerland (where he attended international British
school), educated through university in the U.S., started his
career with a Japanese company, moved to New York to
work as an analyst, married a Brazilian, and has traveled
brian.butler@forum-nexus.com extensively in Latin America, Asia, Europe and North
briandbutler@gmail.com
LinkedIn/briandbutler America.
Skype: briandbutler
Brian currently lives in Recife, Brazil where he is teaching
classes on “Global Entrepreneurship” at the university
“Faculdade Boa Viagem”.

6. Intros

8. Entrepreneurial Experience:

10. KookyPlan – wiki for Entrepreneurs

11. WhyBrasil.com – wordpress MU

12. GloboTrends – wiki + blog

13. Introductions: All students introduce
themselves:
• Level interest in Entrepreneurship?
▫ Ever opened a company before? Why not? (fear of
failure? Waiting for “right idea”?
▫ How strong is your interest in opening a
company? (1-10)
 1 – not sure
 10 – sure will, already know idea, have $$

14. Introductions: All students introduce
themselves:
• Level of international exposure?
▫ Experience traveling abroad? At what age?
Frequency? Duration?
▫ Ever lived abroad? Any interest in living abroad?
Where? Why? Study Abroad?
▫ How often do you read international newspapers?
Watch international news? Blogs? Other?

15. Introductions: All students introduce
themselves:
• Level of comfort with social media - technology
▫ Tech phobic? – or – tech geek?
▫ Experience with blogs, twitter, facebook, other
social media?
▫ Web designer? Programmers?

16. Course Description
Syllabus

17. Course Description
• This course presents a systematic overview of
the opportunities for global entrepreneurship.
• There will be an integrated progression of topics
ranging from understanding the political,
economic, cultural and economic influences on
international trade and investment flows, to the
analysis of the strategic and operational
alternatives when conducting international
business.

18. Course Description
• This course introduces a way of thinking called
“global mindset for entrepreneurs”. Through
practical case-studies, team projects and meet-
ups with local entrepreneurs and organizations,
the students will be exposed to the actual
implementation of the topics covered in class on
real-life companies.

19. Course Description
• Course Objectives
• Global Entrepreneur class has four specific goals:
1. To help students learn how to systematically analyze
opportunities for global entrepreneurship
2. To familiarize students with the issues and
challenges facing global entrepreneurs.
3. To provide students with an intensive experience
studying "global" startups.
4. To familiarize students with the power of informal
networks and the importance of leveraging networks
while working globally.

20. Course Description
• Upon successful completion of this course students will
be able to:
1. Develop a solid understanding of the foundations of
international entrepreneurship and the cultural context
for creating companies in diverse international
environments
2. Become familiarized with the causes and consequences of
the process of accelerated globalization
3. Examine the strategies and structures that young firms
adopt in order to compete effectively in the international
business arena
4. Examine the policies and practices of entrepreneurs
regarding ethics, social responsibility and the
environment
5. Understand changes in technologies and the numerous
opportunities they offer for international
entrepreneurship

21. Class Schedule: Topics to cover:
Introduction, definitions
▫ Define learning objectives. Learn about student’s
international and entrepreneurial experience and
aspirations.
▫ Global entrepreneurship – what does it mean to be a
“global entrepreneur”?
▫ What are the benefits of global entrepreneurship?
What are the challenges?
▫ What are some “global industries”? –ex:
pharmaceuticals, banking, internet, technology,
media, film, music, travel
▫ Understanding the difference between Global
strategies, International strategies, Multinational
strategies, and transnational ones.

22. Class Schedule: Topics to cover:
The “Three Questions” framework
• The “three questions” framework
▫ “what is the problem, and what are you going to
do about it?”;
▫ “What is the trend, and how are you going to
get in front of it?”,
▫ “what is great here / somewhere else, and how
are you going to localize it?”

23. Class Schedule: Topics to cover:
The “Three Questions” framework
• Seeking Opportunities by solving problems:
• Analyzing trends to find opportunities: ie.
▫ Awareness of global trends, global business models
▫ Global Trends, changes, risks and opportunities
▫ Global changes in technology, communications, capital markets,
regulations, consumer tastes, credit availability, technology and
more; and how they create opportunities for entrepreneurs
• Localization and replication locally:
▫ International IQ: global awareness, and the opportunities for
global entrepreneurs
▫ Mass-Localization vs Globalization: What are “localizing”
strategies?
▫ Localization of foreign business models and technology
▫ A systematic approach to analyzing the risks and opportunities;
looking at cultural differences, regulatory differences, consumer
behavior, tastes, income levels, and more…in the process of
evaluating localizing strategies
▫ Benchmarking, and best practices – international inspiration

24. Class Schedule: Topics to cover:
Developing the global mindset for
entrepreneurs
• Globalizing: Learning to “think global, act
global”: Going-global strategies for local
entrepreneurs
• The challenges of thinking globally for small
companies

25. Class Schedule: Topics to cover:
Enabling global entrepreneurs with
technology
• Using technology for global collaboration,
international team-building and cross cultural
entrepreneurship: analyzing the challenges for
entrepreneurs
• Collaborating: the global Value Chain and
entrepreneurship
• Open source strategy (technology, business
models)

26. Class Schedule: Topics to cover:
Cultural aspects of entrepreneurship and
innovation:
• Benefits of an open society: Immigration and
innovation
• The importance of Critical Thinking for
innovation
• “Fail fast” and “global learning”
• Communicating across borders and across
cultures: challenges for entrepreneurs

27. Class Schedule: Topics to cover:
Entering Foreign markets
• Market entry strategy – international marketing
– licensing, franchising, JV’s, FDI -
• OLI theory of FDI
• Foreign Direct Investment
• Corporate innovation
Competing against global giants
• M&A as strategy for building global empires
• How entrepreneurs compete vs global
competitors

28. Class Schedule: Topics to cover:
Role of global finance for entrepreneurship
• International finance – Euroloans, Foreign currency, interest rates –
risks, hedging
• Venture Capital, seed funding, bootstrap funding
Geographical Clusters + Economic Development
• Centers / Clusters: What makes Silicon Valley work?
• Is India the next emerging competitor to Silicon Valley?
• VC and innovation clusters – Silicon Valley, Boston, Israel. What’s
missing in Europe? Latin America?
• Innovation Eco-systems: ranking cities for innovative potential
• Strategy: Building national Champions
• Understanding global differences: Unique Brazilian brand of
Capitalism
• The Chinese model, why it works, what are the risks
• Economic development through innovation and entrepreneurship
• Do developing nations need technological innovation? Or tech-
transfers?
• Benefits of an open society: Immigration and innovation

29. Class Schedule: Topics to cover:
Social Entrepreneurship – international focus
• Development & Entrepreneurism: Social
entrepreneurship, credit to the poor, bottom of the
pyramid marketing, making technology affordable
Management challenges
• Leadership skills, time, money
• Developing international leadership skills
• Managing across borders – challenges for small
companies
• Building international teams
• Selling in unfamiliar cultures, languages

30. Course Description
• Course Requirements
• The course requires active student participation.
Students are expected to read the assigned
textbook chapters, cases and articles before
every class. Punctual attendance is required.
There will be a midterm exam, a midterm2
exam, case studies, and a team project.

31. Course Description
• Teaching Procedures and Methodology
• Teaching methods used in this course include lectures,
case discussions, team assignments, and professional
visits. Learning in this course requires the student’s
constructive participation and active involvement in both
class discussions and small group discussions. Small
group discussions, in particular, are a key mechanism for
facilitating learning from other team members. Thus, it
is essential to attend all group activities inside and
outside classes. The corporate visits will expose the
participants to different aspects of the class and will
highlight the practical relevance of the concepts learned.
The visits will be accompanied by individual or group
assignments.

32. Course Description
• Language Requirements:
• Professor Brian will conduct classes in English, but can answer any
questions / doubts in Portuguese.
• Students must be able to understand spoken English, and will be asked to
submit assignments in English. This is not, however, and English-language
course, and the purpose of the class is not to test the students English
language skills. Off-Class discussion among students may be conducted in
either English or in Portuguese.
• The reason that English is important for this class: in order for students to
be able to take advantage of global entrepreneurship opportunities, it
should be stressed the importance of being aware of technological, scientific
and global business trends, many of which are available first online in
English-language formats . For this reason, globally minded entrepreneurs
should have the basic ability to read and understand English.

33. TEAM PROJECT
• This team project is designed to provide you
with a sound understanding of how
entrepreneurs that engage in international
business apply the concepts discussed in class to
make real-life business decisions. Your team
assumes the role of consultants that will advise
the chosen company on some critical issues
related to expanding into a new market. Teams
will be made up of 3-4 students each.
• Students will be asked to market a good or
service from one country to another country.
The project must include the following sections:

34. TEAM PROJECT
I. Product and Company Selection
• Select a product or service that at least one members of
the team has a specific knowledge about and is currently
marketed in a foreign country. Describe the product, the
manufacturer, and the international business orientation
of the firm.
II. Market Analysis
• Research the possibility of bringing that product/ service
to another country (localizing the foreign business).
Elaborate a market analysis in which you examine the
competitive, economical and political environment that
will impact the future success of your product and
company there. Focus on the aspects of these
environments that are most relevant to your company
and product.

35. TEAM PROJECT
III. Market Entry Strategy
• After selecting a product and analyzing the target market,
evaluate the different market entry strategies available.
Assume that the company does not merely want to export its
product to the given market, but has plans to develop a more
strategic approach to entering this market.
IV. Location
• As part of your analysis in part III, make sure to suggest one
or more particular cities or regions that will play a role in your
proposed strategy. Describe the advantages of the proposed
locations in terms of operations and distribution among
others.
• The project report should be between 6 and 8 pages long
(Font: Arial, 12; Line Spacing: 1.5).

36. Grading
• Components of Final Grade
• Exam a- 20%
• Exam b- 30%
• Team project 25%
• Assignments 15%
• Class participation 10%

37. What is Global
Entrepreneurship?
Introduction

38. Global entrepreneurship
“Entrepreneurship is the motor of the global
economy.”
Economist.com

39. Global entrepreneurship
• Entrepreneurship in the 21st century is evolving.
• Because of global changes in technology,
communications, and capital markets….
…… today's innovative startups are building
successful companies in countries around the
globe, in many instances with investors,
vendors, customers, and employees located
thousands of miles away.

40. Global entrepreneurship
• The challenges these leading-edge companies
face, particularly in emerging markets, are some
of the most sophisticated issues both for
businesses and governments alike.
• Many entrepreneurs find it difficult to expand
and manage their ventures expanding into the
global marketplace.

41. Opportunities for Global Entrepreneurs:
• Never before have there been so many
interesting and exciting international business
opportunities.
▫ The movement of the once more controlled
economies of the former Eastern and Central
Europe, the former USSR, and the People’s
Republic of China to market orientation, the
expansion of the Pacific Rim and South America,
and the awakening of countries in the African
continent …..provide a myriad of possibilities for
entrepreneurs wanting to launch businesses in a
global market as well as for businesses of existing
entrepreneurs to expand globally.

42. What is “global” entrepreneurship?
• Simply defined, the global entrepreneur is one who
conducts business activities across national
boundaries (executing his or her business model in
more than one country).
• The successful global entrepreneur understands how
international business differs from domestic
business and is able to respond accordingly.
• Successful global entrepreneurship needs to take
into account the: culture, political and legal
environment, economic system and development,
technology environment, and the overall
infrastructure.

43. Types of Entrepreneurs
1. Local for local
▫ Fill local void, local opportunity.
▫ Little education necessary. Low growth expected. Opportunity
based
2. High growth
▫ Disruptive innovation, technology driven
▫ Examples: facebook, twitter, google
3. Global
▫ Disrupt local, but not necessarily technology, nor necessarily
innovative. Often copies of service in one location,
transplanted to another. Excellent for emerging markets.
▫ Examples includes exporters, importers, as well as high growth
technology with global focus, Indian outsourcing, design firms,
and “global nomads” (expats with confidence to go global and
startup local companies).

44. Why go Global
Benefits

45. Why go global?
1. When local market is too small:
▫ Example: a high-end furniture maker in Recife,
Brazil would find the local market too small for scale
production, so might look internationally at New
York, London for clients
2. When you have competitive advantage you
wish to exploit globally
▫ Example: lower cost of labor, or high skilled
workforce, or raw material exclusive to region
▫ Example: India as tech outsourcing region with high
tech workforce, English, fraction of cost
▫ Manufacturing – export,
▫ Service – sell abroad – doctors, accountants, etc.

46. Why go global?
3. Enter markets before knockoffs
▫ International clones (copies of business model)
spread quickly, so you need to launch
GLOBALLY from the start (in multiple
languages)
• Yes, you come up with a great idea in the USA, and it works
well...and then...someone in Germany copies it, but offers it in
multiple languages (which Europeans are good at doing), and next
thing you know, they are selling well all across Europe, Latin
America, Asia...and are doing better than the original.
• This is an accelerated product life cycle.

47. Why go global?
4. Network effect = global dominance
▫ Example of Facebook vs. MySpace

48. International Strategy – comparing
Facebook with MySpace – 2 years ago

49. International Strategy – comparing
Facebook with MySpace – 2 years ago
• Back in 2008:
▫ “Facebook is now the largest social network in the
world.
▫ But they continue to trail MySpace by a massive
36 million users in the U.S., and at current growth
rates it will take them 18 years to overtake
them.

50. today
• Facebook is the world’s largest social network,
with over 400 million users, 130 million
unique visitors per month
• MySpace = only 50 million unique visitors per
month
• What happened?

51. International strategy = key
▫ “Most of Facebook’s growth is international,
where they’ve executed on a brilliant strategy for
quickly rolling out localized versions of sites by
getting their users to do the translation
work for them (MySpace, by contrast, expands via
a command-and-control infrastructure that puts
people on the ground in each new international
market).

53. Facebook growth international
• International Growth
• More than 70 translations available on the site
• About 70% of Facebook users are outside the
United States
• Over 300,000 users helped translate the site
through the translations application
http://www.facebook.com/press/info.php?statistics

54. Facebook growth international
• International growh = key to winning vs
competition
• Massive growth in users
• Network effect = value of company… leads to
more investment…leads to better user
experience…leads to more users

55. Network effect
• In economics and business, a network
effect (also called network externality) is
the effect that one user of
a good or service has on the value of that
product to other people. When network effect
is present, the value of a product or service
increases as more people use it.
• The classic example is the telephone. The
more people who own telephones, the more
valuable the telephone is to each owner. This
creates a positive externality because a user
may purchase their phone without intending
to create value for other users, but does so in
any case.
• Online social networkswork in the same way,
with sites like MySpace and Facebook being
more useful the more users that join.

56. Opportunities – why?
• The opportunities for international business
dealings have grown dramatically as the
traditional barriers associated with distance and
cross-border transactions have been reduced
through new technology and trade negotiations.
http://www.oecd.org/dataoecd/4/17/37818332.p

57. Homework for next class
Sorry!

58. 3-questions exercise
• Identify at least (1) major problem, (1) major trend,
and (1) transferrable idea in:
• (a) locally – Recife
• (b) locally – Brazil
• ( c) globally – some other part of world, or
worldwide
• Due next week – Maximum 1 page – word document
– submit by email to : briandbutler@gmail.com

59. Class Schedule: Topics to cover:
The “Three Questions” framework
• The “three questions” framework
1. “what is the problem,
 and what are you going to do about it?”;
2. “What is the trend?
 and how are you going to get in front of it?”,
3. “what is great here / somewhere else?
 and where else could it work? how are you going to
localize it? Where else could you bring this idea and
find success?

60. International IQ moment
Great stuff abroad you
should know exists!

61. Barcelona: Sagrada Familia Cathedral

62. Sagrada Família
• Sagrada Família, is a massive, privately-
funded Roman Catholic church that has been under
construction
in Barcelona, Catalonia, Spain since 1882 and is not
expected to be complete until at least 2026.
• Considered the master-work of renowned Catalan
architect Antoni Gaudí (1852–1926), the project's
vast scale and idiosyncratic design have made it one
of Barcelona's (and Spain's) top tourist attractions
for many years.