Lecture 11:

Entrepreneurship and intrapreneurship development

 Outline
I. Entrepreneurship
• Defining the concepts
• Entrepreneurial Process Model
• Who should be entrepreneurs?
II. Intrapreneurship
• Defining the concepts
• Intrapreneur – corporate relationship model
• Some examples
• Intrapreneurship phases and development
III. Corporate entrepreneurship
• Defining the concept
• The 4 type model of CE
IV. Entrepreneurship vs. Intrapreneurship
 I. Entrepreneurship:

1. Defining the concepts

Entrepreneurship is the pursuit process of opportunities
beyond the resources you currently control. (Stevenson &
Jarillo, 1991)
• Entrepreneurship is a process
• Entrepreneur is an individual doing entrepreneurship
• Entrepreneurial is attitudes, skills and behaviors of the
entrepreneur.
 I. Who is a manager?
(cont)
Entrepreneurship is a process…

Opportunity Strategies to
recognition for Willingness &
manage limited
value creation initiative to seize
resources
(Innovation) opportunities

Willingness to take
calculated risks Source: New Venture Creation, Timmons, 2003
From research at Boston College
2. Levels of management (cont)
a. Top-level managers:
• E.g.: Chairman of the board, CEO, president, vice president,
COO (Chief Operating Officer), CFO (Chief Financial Officer),
CIO (Chief Information Officer).
� Described as C-level/executive managers
• What they do?
– Be empowered to make major decisions affecting the present and
future of the firm.
– Give the organization general direction: deciding where it is going
and how it will get there.
2. Entrepreneurial Process Model

Timmon’s model of the entrepreneurial process, 2003

3. Who should be entrepreneurs?
 II. Intrapreneurship

1. Defining the concepts

Intrapreneurship is a process by which individuals inside organizations
pursue opportunities independent of the resources they currently
control. (Stevenson & Jarillo, 1990)
• Intrapreneurs are … “dreamers who do”; are those who take hands-on
responsibility for creating innovation of any kind within organization.
They may be the creators or inventors but are always the dreamers who
figure out how to turn an idea into a profitable reality. (Pinchot, 1985)
2. Intrapreneur – Corporate Relationship Model
3. Examples of intrapreneurs
3. Examples of intrapreneurs (cont)
4. Intrapreneuring phases
5. Intrapreneurship development
6. Intrapreneurial is attitudes, skills and
behaviors
– Taking initiative: self-starting, proactive, persistent
– Innovative: implement vision to increase benefit/reducing
costs
– Voicing
– Championing
– Taking charge
– Some degree of risk taking
 III. Corporate entrepreneurship

1. Definition
The process by which teams within an established firm
conceive, foster, launch, and manage a new business that
is distinct from but leverages the company’s current assets,
markets and capabilities.
(Wolcott & Lippitz, 2010)
2. The 4 model of Corporate Entrepreneurship
3. Incentive design for Corporate
Entrepreneurship
1. Prime factor
– Human elements, Critical Success Factor; Autonomy, Structure
and Processes
2. Incentive System Parameters
– Short-term vs. long-term; Performance Relatedness; Attracting
and retaining
3. Incentive System Components
– Financial, Non-financial and Risk
1. Prime Factor: Critical Success Factors
3. Incentive System Components: Financial
3. Incentive System Components: Non-financial
3. Incentive System Components: Risk
 IV. Entrepreneurship vs.
Intrapreneurship
Intrapreneurship is part of entrepreneurship, but differ in
terms of:
Source: Pestana, 2014