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Date: 2016-08-12

Born Global or No?

The drums are beating loudly for technology start-ups to become global companies from inception. Ideally these companies are “born global”. But is this a realistic assumption? To be effective in global markets a company needs to have a competitive product, financial stability and infrastructure that support a global reach for every business function. I’ve spent the past decade in and around start-up companies and it’s a rare company that has even one of those criteria in its early stages.

So CAN a start-up technology company be BORN GLOBAL?

My answer to this is: it depends on the definition of “born global”. Rarely will there be a company that can start its business being completely global. On the other hand, all technology companies at this point should be planning for how they will enter and compete globally. This focus should influence hiring decisions, building capacity and potential partnerships. The timing on when the company actually enters international markets will depend on when it reaches the criteria for competitiveness, stability and infrastructure. At that point, the company can finally take advantage of the vast opportunities in the global marketplace.

(“Born Global or No?” is a play on Walter Kuemmerle’s famous Harvard business case published in 2001: “Go Global or No?”)


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