ENTREPRENEURSHIP

Entre Entre
Enter
prene prene
ur urship prise

Person Process Outcome

 Innovator

Recognizes/detects opportunities

ENTREPRENE Convert those opportunities in

marketable ideas
UR

Add value through time, effort, money and skill

Assumes the risk of competitive market place

Entrepreneur
An individual who takes initiative to bundle resources in
innovative ways and is willing to bear the risk and/or
uncertainty to act.

 An individual who takes initiative to

 bundle resources in
 innovative ways and
 is willing to bear the risk and/or uncertainty to act.
Apple Tesla
Microsoft Facebook
Google Intel Uber

Alibaba
Entrepreneurship

 Entrepreneurship is the process of designing,

launching and running a new business, which is often
initially a small business.
Designing

Launching

Running
 Capacity and willingness to develop, organize and manage a
business venture along with any of its risks in order to make a
profit.
Develop

Organize

Manage
 “Entrepreneurship is the pursuit of opportunity beyond resources
controlled.” Prof. Howard Stevenson
(Harvard Business School)
 Personality
The Management
Characteristic Classical School of
School of
School of Entrepreneurship
Entrepreneurship
Entrepreneurship

The Leadership Intrapreneurship

School of School of
Entrepreneurship Entrepreneurship
Personality Characteristics School of
Entrepreneurship

Personal Value System

Risk taking Propensity

Need for Achievement

Classical School of Entrepreneurship

 Key Factors underlying research:

Innovation

Creativity

Discovery
The Management School of Entrepreneurship

Suggests,
 “Entrepreneur is a person who organizes or manages a business undertaking,
assuming the risk for the sake of profit” (Webster, 1966)

 “In addition to the risk taking, the functions of an entrepreneur include,

a) Supervision
b) Control
c) Providing direction to the firm” (Mill, 1984)
The Leadership School of Entrepreneurship

Suggests,
 Entrepreneur needs to be,
1. Skilled in appealing others to “join the cause.”
2. Must be a “ people manger.”
3. Effective leader/mentor who plays a major role in,

a. Motivating
b. Directing
c. Leading
Traits

 Adaptability to situations
 Cooperativeness
 Energy
 Willingness to take responsibility
Intrapreneurship School of Entrepreneurship

 Entrepreneurial activity within established organizations

 Emphasizes the development of teams for creative problem solving
Questions

 What are your values?

 What are the opportunities
 What are your capabilities?
 How do you mange people?
 How do you change and adapt?
 Entrepreneurial Intentions
The motivational factors that influence individuals to pursue
entrepreneurial outcomes
 Entrepreneurial Self Efficacy
The conviction that one can successfully execute the entrepreneurial
process.
 Perceived Desirability
Perceived desirability refers to an individual’s attitude toward
entrepreneurial action—The degree to which an individual has a
favorable or unfavorable evaluation of the potential entrepreneurial
outcomes.
Entrepreneurial mind-set

 Involves the ability to rapidly sense, act, and mobilize, even

under uncertain conditions.
How Entrepreneurs Think?

 Think differently from non entrepreneurs.

 Entrepreneurs in particular situations may think differently

when faced with a different task or decision environment.

 Often make decisions in highly uncertain environment.

Think Structurally

 Forming opportunity beliefs often require mental leaps.

 Creative mental leaps are launched from a source- one’s existing
knowledge.
 Example:
 Knowledge about existing market to a new technology that could
lead to product/service that satisfy that market.
 Knowledge about a technology to a new market.
 Making Connections
COGNITIVE ADAPTIBILITY

 Cognitive adaptability describes the extent to

which entrepreneurs are:

 Dynamic, flexible, self-regulating and engaged in

the process of generating multiple decision
frameworks focused on sensing and processing
changes in their environments and then acting on
them.
Achieving cognitive adaptability

 Comprehension questions – Aids understanding of the

nature of the environment before addressing an
entrepreneurial challenge, whether it be a change in the
environment or the assessment of a potential opportunity.

 Understanding arises from recognition that a problem or

opportunity exists, the nature of that situation, and its
implications.

 What is this market all about?

 What is this technology all about?
 What do we want to achieve by creating this new firm?
 Connection tasks – Stimulates thinking about the
current situation in terms of similarities and differences
with situations previously faced and solved.

 How is this new organization similar to the established

organizations I have managed? How is it different?

 Strategic tasks – Stimulates thoughts about which

strategies are appropriate for solving the problem (and
why) or pursuing the opportunity (and how).

 What changes to strategic position, organizational

structure, and culture will help us manage our newness?
 How can the implementation of this strategy be made
feasible?
 Reflection tasks
Stimulates thinking about their understanding and feelings as they
progress through the entrepreneurial process.

 What difficulties will we have in convincing our stakeholders?

 Is there a better way to implement our strategy?
 How will we know success if we see it?
Causal Process

 Causal process
• Starts with a desired outcome. (pre determined
goal)
• Focuses on the means to generate that outcome.

 Conditions
• Market for a product/service need to exist
• Existence of information
 CAUSATION

• Identifies an opportunity before developing anything

• Identifies and assesses long-run opportunities in
developing the firm
Causation • Calculates the returns of various opportunities
• Develops a business plan
• Organizes and implements control processes
 • Gathers and reviews information about market size and
growth
• Gathers information about competitors and analyzes
their offerings
• Expresses a vision and/or goals for the venture
Causation • Develops a project plan to develop the product and/or
services
• Writes up a marketing plan for taking the
products/services to market
Effectuation process
 Starts with what one has (who they are, what they know, and whom they know).
 Selects among possible outcomes.
 Instead of goals focus on available set of means
 Individual level
 Personal knowledge
 Skills
 Social networks
 Firm level
 Physical resources
 Human resources
 Conditions:
 Relevant in highly uncertain and dynamic environments
 Future is unknown

 Questions:
Who am I?
What do I know?
Whom do I know to uncover opportunities?
EFFECTUATION

Experimentation Affordable Loss

Flexibility Pre commitments

Experimentation

Develops multiple variations of a product or service to

arrive at a commercial offering

Experiments with different ways to sell and/or deliver

a product or service

Changes the product or service substantially as the

venture develops
Affordable loss

Commits only limited amounts of resources to the

venture at a time

Limits the resources committed to the venture in to

what could be lost
Flexibility

Responds to unplanned opportunities as they arise

Adapts what they are doing to the resources on hand

Avoids courses of action that restrict flexibility and

adaptability
Pre commitments

Enters into agreements with customers,

suppliers, and other organizations
Bricolage

 Entrepreneurs often lack resources.

 Either they seek resources from others to generate opportunities
or they bricolage
 Do by applying combination of resources at hand to new
problems and opportunities.

 This involves taking resources and experimenting, repackaging

or reframing so they can be used in a way for which they were
not originally designed.
 Condition:
Access to few resources
Bricolage

• Experiments to solve problems

• Combines existing resources in creating solutions
Bricolage • Reuses resources for purposes other than those for
definition which they were originally designed.
• Uses existing resources

• Uses forgotten, discarded, worn materials to

create new solutions
Bricolage • (labor inputs)
domains • (skills inputs).
• Works around rules and standards