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THE INTENTION TO ACT ENTREPRENIALLY
1. ENTREPRENEURIAL INTENTIONS: The motivational factors entrepreneurial outcomes. Entrepreneurial Intentions 2. that influence individuals to pursue
ENTREPRENEURIAL SELF EFFICACY:
The conviction that one can successfully execute the entrepreneurial process. Entrepreneurial Self Efficacy 3. PERCIVED DEIREABILITY: The degree to which an individual has a favorable or unfavorable evaluation of he potential entrepreneurial outcomes. Perceived Desirability Evaluation of Outcome Friction of Process
There are four important determinants of an entrepreneur background: Education, Age, Personal Values, Work History 1. EDUCATION: • • • 2. Education is important in upbringing of an entrepreneur and helps in starting the venture and problem solving. Importance to be given to finance, strategic planning, marketing, finance and communication with people. Education helps in opportunity identification and exploitation.
PERSONAL VALUES: • • On the basis of personal values it is difficult to differentiate an entrepreneur from a manger or even from general public. The personal values include opportunistic, superior product quality, Quality Services to customers, flexibility, adaptability, high caliber management, honesty and ethical behavior.
AGE: Chronological Age (Personal Age) Entrepreneurial Age (Business Age) (Age from 22-45 years is considered as an ideal age to start the business) Male start in Early 30’s whereas Female start in Mid 30’s
WORK HISTORY: The past work experience of individual • That may include dissatisfaction, lack of challenge, frustration and boredom, as well as motivation and related work experience. • When venture starts growing managerial experience becomes more important. • The previous start up experience is also helpful in prediction and benchmarking. Benchmarking: Compare the performance with the best in the world
ROLE MODELS AND SUPPORT SYSTEMS:
Ideal is not in ur access but role model is in your access and you can share and discuss with him when you want to. ROLE MODEL: • • • • • Individual Influencing an entrepreneur’s career choice and style. They can be parents, brother or sister, other relatives or entrepreneur. Act as a “mentor” through advice, information and guidance Serves at a “catalyst”. Later on network with similar prevalent is established depending on frequency, depth, mutual benefits and reciprocity of relationships.
SUPPORT SYSTEM: 1. Moral support network: • • 2. A cheering squad providing psychological support. Supporting wives, honest friends, children parents, grand-parents and uncles who encourage and understand and relatives including.
Professional Support Networks:
Individuals helping the entrepreneur in business activities. a) Mentors: A coach, advocate and expert in the filed and provides “HOW TO” advise. A person with which the entrepreneurs can share his problems and success. b) Business Associates: Self employed individuals, clients, consultant, suppliers, lawyers, accountants etc. c) Trade Association: Regional and national associations who keep the developments and provide industry data and may include trade association of respective field e.g. APTMA and the Chamber of Commerce. d) Personal Affiliation:
This includes shared hobbies, supporting activities, clubs, civic involvement and school alumni group. These above support system helps in resource identification and acquisition and locates opportunities.
Male Vs Female Entrepreneur
Male i) Motivation Achievement that is striving to make things happen and personal independence ii). Departure Points Dissatisfaction with current job iii) Sources of Funds: Personal Assets, savings, bank financing, investors and loans from friends and family. iv) Occupational Background: Recognized specialist, high achiever and experience in the line of work and competent in a variety of business functions v) Personality Characteristics Job frustration
Female Achievement based on accomplishment of goals and independence to do it alone.
Personal Assets, savings and personal loans.
Mid-level management experience, service related occupational background and experience in area of work.
Opinionated, persuasive, goal oriented, Flexible, tolerant, goal oriented, innovative, idealistic, high self confidence creative, realistic, medium level of self confidence vi) Background Age 25 – 35, self employed father, first born child vii) Support Group Age 35 – 45, self employed father, first born child
Friends, professional acquaintances (e.g. Close friends, spouse, family, women lawyers, accountants), business professional groups and trade associates, spouses associations viii) Type of Business Started
Manufacturing or Construction
Service related - education service, consulting or public relations
A typical minority entrepreneur belongs to a Blue Collar family, first born child, college degree, related business experience, motivated by achievement, opportunity and job satisfaction.
ENTREPRENEURIAL INTENTIONS WITH AN EXISTING ORGANIZATION:
Environmental conditions are motivating people with an organization to act entrepreneurially. Characteristics include appropriate reward system, top management support, explicit goals and appropriate organizational values. CAUSES FOR INTEREST IN CORPORATE ENTREPRENEURSHIP: 1. 2. 3. 4. 5. 6. 7. Doing your own things and doing it in owns way. Concept of self actualization. Need for expression and freedom. Stimulating and capitalizing on individual potential. Overcoming resistance against flexibility, growth and diversification. Social, cultural and business pressures. New Business venturing: that is creation of new business within an existing organization (SBU) 8. Innovation: that is constant improvement. 9. Pro-activeness: Initiative and risk taking. TRADITIONAL CORPORATE CULTURE VS ENTREPRENEURIAL CULTURE: Characteristics Of Corporate Culture 1. 2. 3. 4. 5. 6. 7. 8. 9. Rational decisions based on large data No risky decisions. Sign offs and approvals required. Adhere to instructions. No mistakes. Do not fail No initiative. Lack of creativity, flexibility and independence. Hierarchical and established routines. Characteristics of Entrepreneurial Culture: 1 Develop visions and goals. 2 Rewards for action. 3 Create and develop. 4 Take responsibility and ownership. 5 Flat organizational structure and close working relationship.
CLIMATE FOR CORPORATE ENTREPRENEURSHIP
Characteristics: i) Organization Operates at frontiers of technology i.e. most modern technology. Research and development and new ideas are encouraged. Experimentations: Trial and errors are encouraged. This culture allows mistakes and failures in developing new and innovative products. No Initial Opportunity Parameter: Three are no barriers to new product development and creation. Resources are available and access able. Multi disciplined Team Approach: Existence of cross functional teams. Establish a long term horizon A volunteer involvement: Self motivated and self selected and every one is not suitable for this activity. Reward system is based on attainment of established performance goals. Sponsors and Champions are available. Whole hearted support by top-management physically and by providing resources.
ii) iii) iv) v) vi) vii) viii) ix) x)
LEADERSHIP CHARACTERISTICS OF CORPORATE ENTREPRENEUR
1. 2. 3. Understands environment: Creativity and broad understanding of interval and external environment Visionary and Flexible: Dream great dreams and overcome obstacles.
Create Management Options: Open, encourage changes and creates something new in organizational structure. 4. 5. 6. 7. Encourage the Teamwork: Utilizing multi-disciplined teams and he is a good diplomat. Builds a coalition of supporters: Encourage team members, motivates them and makes everyone a hero. Encourage Open Discussion: Allow frankness, open discussion, disagreement and criticism. Persistent: He can deal with obstacles and frustration.
ESTABLISHING CORPORATE ENTREPRENEURSHIP IN ORGANIZATION:
It can be done internally but outsider can be used to facilitate the process. Step 1: Commitment by top management in order to go through cultural changes, use of seminars. Identify initial framework, identify corporate entrepreneurs, selection and training them Step 2: Ideas and general areas that top management is interested in are identified along with money, risk, time, profitability and impact on organization. Step 3:
Use state of the Art technology
Step 4: Training sessions and general and specific areas of corporate entrepreneurship are outlined Step 5: Get closer to customers (through Databases) Step 6: More productive with fewer resources (concept of lean and mean) Step 7: Establish a strong support structure for corporate entrepreneurship that is flexibility innovative behavior and sufficient funds. Step 8: Tye rewards to the performance of entrepreneurial units. Step 9: Implement evaluation system allowing successful entrepreneurial unit to expand and unsuccessful to eliminate.
PROBLEMS AND SUCCESSFUL EFFORTS:
PROBLEMS: 1. 2. 3. Difficult to maintain long term commitment. Lack of Freedom to make autonomous decision. Constraint environment.
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