Introduction
This assignment will consider Gareth Lewis, CEO and co-founder of Delio, for critical appraisal of a global environmental issue. Delio is a UK Fintech that has specialised in digitising private markets operations of the world’s leading financial institutions (Powell et al. 2020). Mr Gareth Lewis has been the executive officer of this institution, and for the last seven years, it has experienced massive growth in international strategy. Delio has a team of experienced professionals and gained the world’s most respected financial services and technology organisations. The team is passionate about how technology can improve the consumption of financial services globally. Delio’s culture is rooted in helping clients unlock their capabilities in private markets.
As a successful Fintech enterprise in the market, this report will analyse a critical issue affecting the global environment relevant to this enterprise, the CEO, and may affect its internationalisation aspirations. Therefore, this paper will critically discuss internationalising entrepreneurship, an appraisal of the selected issue affecting the global environment, its implications for the Delio enterprise, and its potential for internationalisation. A conclusion will summarise the key points discussed in the report. Lastly, a section of references be provided to support the academic literature discussed, materials borrowed from the enterprise and the entrepreneur.
Critical discussion of international entrepreneurship (500 Words)
International entrepreneurship is an approach through which firms expand to become global enterprises, and strategies that make this process happen. Mainela et al. 2014 describe international entrepreneurship as starting and operating business ventures in multiple countries. This comes along with challenges and opportunities from cross-border activities and global markets. Recently, international entrepreneurship has been considered a dynamic and complex field with significant attention from the increased globalisation of economies and technological advancement. Even though international entrepreneurship has various advantages, it also comes with critical issues that must be considered and addressed.
One of the critical issues in international entrepreneurship is the impact of cultural diversity on business operations (Muzychenko, 2008). Often, entrepreneurs encounter different cultural norms, business practices, and values when expanding into foreign markets, significantly influencing their success. It is significant for entrepreneurs to understand these cultural nuances and build solid relationships with local employees, customers, and suppliers (Johnson et al. 2006). Failure to this adaptation, the enterprise may fall to misunderstandings, communication barriers, and final business failure.
Additionally, the complexity of regulations and legal frameworks in different countries is a critical issue influencing the operations of international entrepreneurship (Silbey, 2013). Every country has its own set of policies and laws regulating business activities. In this way, entrepreneurs must navigate complex systems to ensure compliance and evade legal penalties. Intellectual property protection varies widely and can have adverse risks to innovative ventures (Brander et al. 2017). Therefore, it is wise for international entrepreneurs to invest resources such as time to understand the legal requirements of each nation they enter.
International entrepreneurship encounters economic uncertainties in diverse market conditions (Liesch et al. 2011). Economic factors, including inflation and fluctuations in exchange rates, can have a major impact on business operations and profitability. In this case, international entrepreneurs should develop approaches to mitigate these economic risks, such as diversifying operations in multiple markets and exposure to hedging currency. Entrepreneurs need to be agile, swiftly respond to changing market dynamics, and grab opportunities while reducing risks.
Another critical aspect of international entrepreneurship is access to resources and capital (Pisano et al. 2007, Peiris et al. 2012). Establishing business ventures in multiple countries requires a significant financial investment, which can challenge start-ups and small-medium-sized enterprises. Access to financial sources and building solid partnerships are crucial for such entrepreneurs to support their global ventures (Karra et al. 2008). However, limited financial resources may impede the growth and sustainability of international entrepreneurship.
Managing human resources across borders in international entrepreneurship may also be challenging. Human resource is the pillar of the success of entrepreneurship (Vance and Paik, 2015). Processes such as hiring, training, and retaining a diverse global workforce call for careful planning and cultural awareness (Bartlett and Ghoshal, 2017). Factors such as diverse labour laws, restrictions in mobility, and language barriers may hinder human resource management. Therefore, entrepreneurs should develop constructive strategies to retain talented personnel, acquire and develop talent and establish a strong international team.
International entrepreneurs bring critical challenges that should be addressed to ensure smooth operations in multiple counties. Managing such critical challenges can ensure entrepreneurs unlock their potential in international markets and promote sustainable growth in their business ventures (Santamaria-Alvarez et al., 2018).
Critical appraisal of the chosen issue affecting the global environment (600 words) (1 issue).
Climate change is one of the pressing issues that have continued to affect the global environment. Werndl (2016) defines climate change as the shifts in long-term temperature and weather patterns. Such activities can be natural such as volcanic eruptions and changes in solar activity. However, Trenberth (2018) claims that human activities are the main drivers of climate change due to the burning of fossil fuels. Climate change needs a critical appraisal due to its wide-ranging impacts on the global environment.
Climate change has diverse ecological effects. To mention a few, climate change has resulted in ice caps melting due to rising temperatures. Over the last 25 years, half of the rise of the sea level can be traced to thermal expansion, which describes the process of water expansion due to higher temperatures (Anisimov et al. 2007). Additionally, higher temperatures cause the melting of glaciers. About 14% of ice melting occurs each year, which has endangered the habitat of numerous species (Hoegh-Guldberg and Bruno, 2010). Sfetcu (2018) argues that the polar bear population is estimated to decrease from 26000 to about 9000 between 2051 and 2057.
Additionally, climate change has a significant risk to human society. For instance, increased frequency and intensity resulting from extreme weather events. Populations living in the coastal areas are prone to droughts due to changing rainfall patterns. The availability of freshwater sources is also a threat in these areas leading to water scarcity.
The economic impact of climate change has various facets. The costs associated with mitigating climate change impacts affect enterprises, individuals and the government. For instance, the frequency of natural disasters strains insurance firms and infrastructure, leading to economic losses (Ghesquiere, 2012). Industries reliant on natural resources, such as tourism and agriculture, are vulnerable to the impacts of climate change. For instance, Germany has an estimated agricultural damage of half a billion euros (Zink et al. 2016).
Similarly, tourism is heavily impacted by climate change. Weather determines the length and quality of tourism seasons, significantly influencing destination choice and tourist spending (Li et al., 2017, Anup, 2017). In addition, the shift to a low-carbon economy involves considerable investment in renewable energy and infrastructure, which may be a challenge for developing countries.
Climate change also has a significant social and geopolitical impact which is vital to consider (Dalby, 2013). Climate change has caused significant disruptions exacerbating the current social inequalities and tensions. Individuals have been displaced, facing serious social and economic relegation and migrating pressures (Pismennaya et al. 2015). Climate change has intensified geopolitical conflicts such as competing for scarce resources, for instance, arable land and freshwater (Evans, 2011).
The issue of climate change needs to be addressed with urgency and concerted action at an international level. Global agreements such as the Paris Agreement are established to mitigate greenhouse gas emissions and foster adjustment policies (Agreement, 2015, Delbeke et al., 2019). However, the progress could have been faster, and many countries have fallen short of commitment. The shift to a low-carbon and sustainable ecosystem needs a comprehensive approach, including policy intrusions, technological invention, behavioural change, and global collective efforts.
Generally, climate change is a critical and multifaceted issue with significant consequences on the global environment. Innovating and sustainable practices are needed to mitigate these risks and ensure the well-being of the future generation.
Relevance/implications of the chosen issue from Section 3 to the selected entrepreneur and their enterprise and future internationalisation aims or potential (500 words).
Climate change has significant relevance and implications for Gareth Lewis and the Delio Enterprise, precisely in their future internationalisation potential.
- Market Demand: The demand for environmentally conscious investment grows concerning growth in global awareness of climate change and sustainability (Sachs, 2012). Investors seek opportunities that match their values and integrate environmental, social and governance considerations (Aldridge and Krawciw, 2017). Delio’s internationalisation efforts should consider such an evolving landscape, realising the essence of offering investments that address climate-related risks and foster sustainable practices. Macchiavello and Siri (2022) argue that by integrating ESG factors into the Fintech services, Delio can meet clients’ preferences and tap into a growing market segment.
- Regulatory Landscape: Governments worldwide are establishing policies that mitigate climate change and encourage sustainable practices (Ehrhardt-Martinez et al. 2015). These policies may affect the investment landscape by requiring firms to disclose their carbon emissions and develop sustainable strategies towards eco-friendly initiatives. To navigate these regulations, Delio enterprise can stay informed and ensure compliance with the evolving environmental standards and influence opportunities presented by supportive regulations.
- Risk Management: Financial institutions encounter significant risks from climate change (Sullivan, 2014). Harsh weather conditions can affect the value of assets such as infrastructure. Also, change in regulations can hinder the profitability of this enterprise (Shao et al., 2020). In this way, Delio should assess and incorporate its climate risks into risk management to maintain long-term value with clients and protect their investments (Lee and Shin, 2018). In this way, the enterprise can offer a comprehensive investment approach to the financial institutions they deal with.
- Reputation and rand Image: Climate change has become a critical concern for society, with enterprises being assessed based on their ecological impact and sustainable practices (Sultana, 2022). The aim of internationalising the Delio firm could be influenced by its reputation concerning climate change. In this way, by adopting sustainable practices and encouraging their clients to foster sustainable practices, Delio can establish its brand image and differentiate itself from established enterprises in the international market (Chueca and Ferruz, 2021).
- Innovation and Investment Opportunities: Shifting to a low-carbon economy has several investment opportunities. Green technology is an example of a sector that can experience steady growth in Delio. Delio can explore developing markets and scrutinise investment opportunities that match eco-friendly objectives. For instance, Triodos Bank and Starling Bank promote sustainability in their countries (Zoi, 2021). These financial institutions are eager to go green by choosing planet friendly options and attracting more customers to their services (Bayram et al., 2022). For instance, the Starling Bank in the UK market is paperless and branchless and operates on renewable energy (Dharamshi (2019), Saluja (2021). In this way, Delio should consider such clients in digitising their investment cycles. Also, through Delio’s technology tools, such as advanced data analytics, this Fintech Company can help evaluate and minimise its environmental impact and help investors channel their operations to more sustainable assets (Al-Khatib, 2022). Delio can take this opportunity to transform its operations into a green Fintech enterprise. Therefore, by engaging in green investments, Delio can become a Fintech leader in the resilient global economy.
Conclusion
Climate change holds a substantial implication and relevance for Gareth Lewis and the Delio Enterprise. Therefore, as Delio shadow its internationalisation potential, it is important to consider client preferences, regulatory landscape, risk management strategies, opportunities for investment and innovation and reputation aspects related to climate change. By embracing sustainable practices and integrating green Fintech solutions into their services, Delio can succeed in the international market driven by eco-friendly concerns.
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