THE ENTREPRENEURIALAND

INTRAPRENEURIAL MIND

GROUP 6
 THE ENTREPRENEURIAL PROCESS

The process of starting a new venture is embodied in

the entrepreneurial process, which involves more than
jus problem solving in a typical management position.
An entrepreneur must find, evaluate, and develop an
opportunity by overcoming the forces that resist the
creation of something new.
 Aspects of Entrepreneurial
process
The process has four distinct phase:

1) Identification and evaluation of the opportunity

2) development of the businessplan,

3) determination of the required resources,and

4) management of the resulting enterprise.

 Identify and Evaluate theOpportunity

Opportunity Identification and evaluation is a very

difficult task. Most good business opportunities do
not suddenly appear, but rather results from an
entrepreneur’s alertness to possibilities or, in some
cases, the establishment of mechanism that identify
potential opportunities.
Steps to identify and evaluate theopportunity

• Opportunity assessment

• Creation and length of opportunity

• Real and perceived value of opportunity

• Risk and returns of opportunity

• Opportunity versus personal skills and goals

• Competitive environment
 Develop a Business
Plan

A good business plan must be developed in order to

exploit the defined opportunity. this is very time-
consuming phase of the entrepreneurial process.

A good business plan is essential to developing the

opportunity and determining the resources required,
obtaining those resources, and successfully
managing the resulting venture.
 Steps to develop Business Plan
• Title page
1. Description of Business
• Table of contents
2. Description of Industry

• Executive Summary 3. Technology Plan

4. Marketing Plan
• Major Section 5. Financial Plan
6. Production Plan
• Appendixes
7. Organization Plan
8. Operational Plan
9. Summary
 Determination of the required
resources
The resources needed for addressing the opportunity
must also be determined. This process starts with an
appraisal of the entrepreneur’s present resources. Any
resources that are critical need to be differentiated
from those that are just helpful. Care must be taken not
to underestimate the amount and variety of resources
needed. The downside risks associated with insufficient
or inappropriate resources should also be assessed.
 Steps to Determine Resources
Required
• Determine resources needed.

• Determine existing resources.

• Identify resource gaps and available suppliers.

• Develop access to needed resources.

 Steps to Manage the
Enterprise
• Develop management style.

• Understand key variables for success.

• Identify problems and potential problems.

• Implement control systems.

• Develop growth strategy.

Managerial Vs. Entrepreneurial decisionmaking

Five different dimensions between entrepreneurialdecision

making and managerial styles:
• strategic orientation
• commitment to opportunity
• commitment of resources
• control of resources
• management structure

Managerial styles are called the administrative domain.

Administrative domain is the way manager makedecisions.
 CAUSES FOR INTEREST IN
INTRAPRENEURIALSHIP

These differences in entrepreneurial and managerial domains

have contributed toward an increased interest in
intrapreneurship. This interest has intensified due to a variety of
events occurring on social, cultural, and business levels.

On a social level , there is an increasing interest in “doing your

own thing” and doing it on one’s own terms. Individuals who
believe strongly in their own talents frequently desire to create
something of their own. They want responsibility and have a
strong need for individual expression and freedom in their work
environment.
 Corporate Vs. Intrapreneurial
Culture

Corporate Culture
- is the environment of a particular organization.
Shared values and norms:
• Hierarchical in nature
• Established procedures
• Reporting systems
• Line of authority and responsibility
• Instructions
• Control mechanism.
Intrapreneurial culture
- Is the environment of an entrepreneurial-oriented
organization.
Shared values and norms:
• Flat organizational structure with networking
• Team work
• Sponsors
• Mentors abounding
Note: Close-working relationship help to establish an
atmosphere of trust that facilitates the accomplishment
of visions and objectives.
 Climate for
Intrapreneurship

• Organization operates on frontiers oftechnology

• New ideas encouraged
• Trial and error encouraged
• Failures allowed
• No opportunity parameters – barrier tonew product creation and
development
• Resources available and accessible
• Multi-discipline teamworkapproach
• Long-time horizon
• Volunteer program
• Appropriate reward system
• Sponsors and champions available
• Support of topmanagement
 Intrapreneurial Leadership
Characteristics

• Understand the environment

• Visionary and flexible
• Creates management options
• Encourages teamwork
• Encourages open discussion
• Build a collision of supporters
• Persists
 Establishing Intrapreneurship in
the Organization

1. To secure a commitment to intrapreneurship in the

organization by top, upper, and middle
management levels.
2. Ideas and general areas that top management are
interested in supporting should be identified, along
with the amount of risk money that is available to
develop the concept further.
3. A company need to use technology to make it more
flexible.
4. The organization should have a group of interested
managers who will train employees as well as share
their experiences.
 Establishing Intrapreneurship in
the Organization
5. The organization needs to develop ways to get closerto
its customers.
6. An organization that want to become more
intrapreneurial must learn tobe more productive with
fewer resources.
7. The organization needs to establish a strong support
structure for intrapreneurialship.
8. Support must also involve trying the rewards to the
performance of the intrapreneurialunit.
9. The organization need to implement an evaluation
system that allows successful intrapreneurial unit to
expand and unsuccessful ones eliminated.
THE INDIVIDUAL ENTREPRENEUR
Entrepreneurial Feelings

▪ Locus of Control
A quality indicating the sense of control that
a person has over his life.
Internal Locus of Control
Believing that one’s success depends on one’s
own efforts.
xternal Locus of Control
E
Believing that one’s life is controlled more by luck
or fate than one’s own efforts.
Entrepreneurial Feelings

▪ Feelings of Independence and Need for

Achievement
Need for Independence signifies the feeling of
being one’s own boss and is one of the strongest
needs of an entrepreneur.
Need for Achievement is derived from Mcelland’s
Need Theory, which states that a person with a
high need for achievement is driven by the desire
to succeed and measures that success against a
personal standard of excellence.
Entrepreneurial Feelings

▪ Risk Taking
Starting a new venture involves putting at stake
money, hard work and lots of time.
This involves a certain amount of risk as success is
not guaranteed and all efforts and resources could
go wasted.
Only a person willing to risk it all can succeed.
Entrepreneurial Background and
Characteristics
Childhood Family Background
A child’s future occupation is Birth Order
shaped by what kind of
environment he or she has at
home.
Being the first born is also
believed to have some effect on Parents Occupation
the self-confidence of the person
and ability to start a new venture.
If a parent is an entrepreneur
then its natural that the child will Social Status
find it easy to become one as
well.
Their support is also a deciding
factor in the success of the Relationship with parents
entrepreneur. (Fathers for female E)
Entrepreneur Statement

My father was so consumed by the venture he

started and provided such a strong
example, it never occurred to me to go to
work for anyone else
Entrepreneurial Background and
Characteristics
▪ Education
There are numerous success stories of
entrepreneurs who were high school dropouts.
B
ut most of the entrepreneurs have some kind of
higher education to their credit.
It is not necessarily business related education but
is enough for the entrepreneur to better
understand his business and define new ways to
grow it.
Technical Vs MBA degree
Entrepreneurial Background and
Characteristics
▪ Personal Values
entrepreneur has a very distinct set of values
that make him break off from conventional
practices and start his own venture.
Values like: superior product quality; quality
service to the consumers; flexibility to adapt to
change in the market; high caliber management;
and honesty and ethics in business practices,
define an entrepreneur’s mind frame.
Leadership traits- creativity- opportunism- intution

When is it permissible to tell a lie?

Entrepreneurial Background and
Characteristics
▪ Age
It is necessary that an entrepreneur begins the
new venture at a time when he has the maximum
amount of energy – experience- financial support
The optimal age for such activity would be
somewhere from the age of 22 to the age of 45.
A
tthis time a person has the right amount of
stamina and experience.
Entrepreneurial Background and
Characteristics
Lack of opportunities- frustration & boredom->
▪ Work History Motivation launching new venture

T
he work history of a person is one of the major
factors in prompting a person to start a new
business.
If the person was not satisfied with his past
experience, then he might find it easier to come
up with good business practices that suit his taste
and yield the kind of results that he wants.
learnt from his experience
Managerial may
experience/skills
A
nd what he has
also help him in growing the business.
Motivation

▪ Every entrepreneur is motivated by one thing

or the other when starting a new venture.
▪ The motivational force helps the person
overcome all the problems associated with
the business and guides him towards the
achievement of his goals.
▪ This motivation could be making money or
being independent of others and being one’s
own boss.
Role Models

▪ A role model is important in an

entrepreneur’s life because it influences every
action that he performs.
▪ A role model can be one’s parents, siblings,
close relatives or other entrepreneurs.
▪ An entrepreneur follows the example of his
role model in everything and feels motivated
when trying to personify his role model.
Support Systems
Moral-Support Network
▪ Individuals who give psychological support to an
entrepreneur.
▪ Entrepreneurs need to establish a moral- support
network of family and friends—a cheering squad.
Friends can provide:
▪ Advice.
▪ Encouragement.
▪ Understanding.
▪ Assistance.
Relatives can be strong sources of moral support,
 Support Systems
Professional Support Network

▪ Entrepreneurs need advice and counsel

throughout the establishment of the new
venture which can be obtained from:
Expert in field- advising buddy
Mentors How to find a mentor ?
Self employed- Consultants, lawyers
Business associates Clients & buyers- word of mouth advertising
Suppliers- trends & competition industry
New developments & provide
overall industry data
Trade associations
Shared hobbies-sporting events-clubs
Personal affiliations Schools alumni ( source of referrals, advice)
Male Vs Female
Entrepreneurs
▪ Differences in terms of motivation, business
skills, occupational background, support
systems and sources of funding
▪ Men- drive to control their own destinies, to
make things happen
▪ Women- need of achievement arising – job
frustration- promotional opportunities
Forming 70 % of new businesses
8.5 M small businesses employing over 17 M people 45%
increase since 90’s