Provide an overview of the country with attention paid to the external factors that influence how business is conducted within the country.  What is the impact that these factors will have on the entrepreneurial venture?  

A. A. If a country’s economy is stable and growing, it may provide an opportunity to start a business. There may also be more demand for products and services. However, political instability can pose a risk to the venture as it might be more difficult to do business there. The ability to do business in a country can be affected by cultural, legal and technological factors.

B. Applying Porter’s Diamond: Porter’s Diamond is a model that is used to analyze the factors that contribute to the competitiveness of a country in a particular industry. This model is made up of four elements:

  1. Factor Endowments refers to advanced factors that can be used in production, including capital and skilled labor. These factors can be used to give a country a competitive edge by allowing it to use the country’s strengths.
  2. The spillover effect that allows firms to exploit market opportunities for their benefit is called Supporting and Related Industries. It is possible to identify key supporting industries by using SIC, NAICS, or SITC codes. This can assist in understanding the larger ecosystem where the target industry operates.
  3. Demand Conditions: This refers to the home demand for a firm’s product or service. Strong domestic demand could provide good opportunities for firms to serve.
  4. Firm Strategy, Structure and Rivalry refers to how a country’s laws and regulations govern the creation, structuring, and management of firms. This can help you understand the landscape of competition and the opportunities available to your target firm by identifying local rivals using SIC or NAICS codes.

C. Summary: In the summary section, it is important to discuss how the firm will take advantage of the opportunities made available by the country’s resources, as well as how the firm will deal with threats and risks to doing business in the country. It is important to conduct a market analysis and create a database of competitors for at least 10 countries. This information will be used to identify the direct competition using SIC or NAICS codes. This information can be used to create an entrepreneurial venture in the country chosen. It will identify the strengths and weaknesses, market size and trends, and any other information necessary for a complete understanding of the market.

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