Sudan International University

 Faculty of Management Sciences

high diploma in Business Administration

Entrepreneurship Development

Entrepreneurial Understandings
(THE ENTREPRENEURIAL PERSPECTIVE)

Offered by :Dr. Ashraf Elsiddig Babikier

 THE ENTREPRENEURIAL Mind-Set

The Entrepreneurial Mind-Set is a particular way of

thinking the Entrepreneur's attitude or set of opinions
about his venture or Corporate Entrepreneurship
 Entrepreneurship requires action
(entrepreneurial action) through the creation of
new products/processes and/or the entry into new
markets, which may occur through a newly created
organization or within an established organization.
 Entrepreneurs act on what they believe
is an opportunity.
Because opportunities exist in high
uncertainty, entrepreneurs must use their
judgment about whether or not to act.
The entrepreneur’s prior knowledge can
decrease the amount of uncertainty, and his
or her motivation directs a willingness to bear
uncertainty.
Entrepreneur's thinking

Entrepreneurs think differently from nonentrepreneurs.

Given the nature of an entrepreneur’s decision-making
environment, he or she must sometimes
Think structurally,
Engage in bricolage , (use whatever comes to had )
Effectuate, and
Cognitively adapt.
 Think structurally
Entrepreneurs can see or create structural matches
between a technology and a target market, especially in the
presence of superficial mismatches, they are more likely to
recognize entrepreneurial opportunities.
Technology is the application of scientific knowledge for
practical purposes, especially in industry.
Knowledge of specific technology and/or a market can
facilitate this ability. This skill can also be enhanced through
practice and training.
 Engage in bricolage
Entrepreneurs often lack resources. As a result,
they either seek resources from others to provide the
“slack” necessary to experiment and generate
entrepreneurial opportunities or they engage in
bricolage.
By bricolage we mean that some entrepreneurs make
“do by applying combinations of the resources at hand
to new problems and opportunities. ‫ارتجال ترقيع‬
 This (bricolage )involves taking existing
resources (those at hand) and experimenting,
repairing, repackaging, and/or reframing them
so they can be used in a way for which they
were not originally designed or conceived.
From this process of “making do,”
entrepreneurs can create opportunities.
 Effectuation of entrepreneurs
Entrepreneurs (when thinking about opportunities)
they may use an alternate way of thinking
(Effectuation process).
Effectuation process is a process that starts
with what one has (who they are, what they know,
and whom they know) and selects among possible
outcomes.
Entrepreneurs cognitive adaptation ,role
model and support

Cognitive adaptation
Entrepreneurs who are able to increase cognitive adaptability
have an improved ability to:
Adapt to new situations.
Be creative.
Communicate one’s reasoning behind a particular response.
 Role models
Role models are Individuals influencing an
entrepreneur’s career choice and style.
They can be parents, family members, or
other entrepreneurs.
Role models can serve in a supportive
capacity as mentors by providing
information, advice and guidance.
 Moral-Support Network

Entrepreneurs need to establish connections and

networks in the venture formation process.
It is important for entrepreneurs to have a
encouraging individuals who provide
psychological support.
Friends can provide honest advice,
encouragement, understanding, and assistance.
Relatives can be strong sources of moral
support, particularly if they are also
entrepreneurs.
 Professional-Support Network
Entrepreneurs need advice and counsel throughout the
establishment of the new venture which can be obtained
from:
Mentors.
Business associates.
Suppliers.
Trade associations.
Personal relationships.
Entrepreneurial activity is embedded in networks of
interpersonal relationships.
The personality traits of entrepreneurial
career
Achievement Striving
motivated,- Ambitious ,-
can do

which refers to an individual’s intrinsic motivation and

efficiency of work completion. For example, it could be
suggested that someone interested in this area of career should
be motivated by their desire to achieve goals and be able to
use their time effectively in order to progress further.
Industriousness – Seriousness-
is considered to be an indicator of levels
of persistence and hardiness, the ability to
overcome difficulties and to remain
functional in stressful situations. It can
also convey willingness to work hard and
to offer additional efforts when required.
Passion
refers to one’s enthusiasm, personal
commitment to achieving goals and extent to
which they will go in order to get ahead.
Being passionate about a business proposal
or career can provide greater determination to
accomplish objectives, as well as increasing
the enjoyment gained from it.
Taking Control
is linked to how far the individual believes themselves to
have control over a situation and its outcomes, thus affecting
their perception of positive and negative events.
This idea originated from the psychological theory known
as “Locus of control” which describes the way in which
someone might credit certain events to themselves or to
other external factors. For example, those who believe to
have high levels of control are likely to attribute successes to
their own abilities as opposed to luck.
Creativity
is indicative of how effectively one might generate new
ideas, which is vital to an entrepreneur wishing to
establish themselves within a niche market.
The ability to continually revolutionize and build upon
pre-existing concepts may help to produce a vast
number of successful business models.
 Three types of innovation

Ordinary - New products with little technological

change.
Technological – New products with significant
technological advancement.
Breakthrough – New products with dramatic
technological change.
 Types of Skills required in Entrepreneurship

 Technical skills
 Writing
 Oral communication
 Monitoring environment
 Technical business management
 Technology
 Interpersonal
 Listening
 Ability to organize
 Network building
 Management style
 Coaching
 Being a team player
 Business management skills
 Planning and goal setting
 Decision making
 Human relations
 Marketing
 Finance
 Accounting
 Management
 Control
 Negotiation
 Venture launch
 Managing growth
Personal entrepreneurial skills
 Inner control
 Risk taker
 Innovative
 Chang oriented
 Persistent
 Visionary leader
 Ability to manage change
Role of Entrepreneurship in Economic
Development

 Entrepreneurship is a significant factor for

economic growth, innovation and job creation
of countries.
 Innovation is shown as a key to economic
development.
 ENTRAPRENEURSHIP

Entrepreneurship with in an existing

organization.
It bridges the gap between science
and the marketplace.
Problems face ENTRAPRENEURSHIP

-Bureaucratic structure.
-Emphasis on short term profits.
-Highly structured organizations inhibit creativity
.
In the present era of hyper competition
organizations need to develop the intrapreneurial
spirit.
Top management must create an environment
that encourages employees to think and act
entrepreneurially.
Employees will realize that entrepreneurial
action within the firm is both personally
desirable and feasible.
 Entrepreneurial management is distinct from traditional
management in terms of:
 Strategic orientation.
 Commitment to opportunity.
 Commitment of resources.
 Control of resources.
 Management structure.
 Reward philosophy.
 Growth orientation.
 Entrepreneurial culture.
 Causes for Interest in Entrapreneurship
 Increasing interest in “doing your own thing” and
doing it on one’s terms.
 New search for meaning and displeasure has caused
more dissatisfaction in structured organizations.
 Organizations are encouraging corporate
entrepreneurship i.e. stimulating, and capitalizing
on, employees who think that something can be
done differently and better.
Establishing Corporate Entrapreneurship

 Step one:
 Secure a commitment to corporate
entrepreneurship in the organization by top, upper,
and middle management levels.
 Establish initial framework and embrace the
concept.
 Identify, select, and train corporate entrepreneurs.
Step two:
 Identify ideas and areas that top management is
interested in supporting.
 Identify amount of risk money available to develop the
concept.
 Establish overall program expectations and target results
of each corporate venture.
 Establish mentor/sponsor system.
Step three:
 Use of technology to ensure organizational flexibility.
Step four:
 Identify interested managers to train employees
and share their experiences.
Step five:
 Develop ways for the organization to get closer to
its customers.
Step six:
 Learn to be more productive with fewer resources.
Step seven:
 Establish a strong support structure for corporate
entrepreneurship.
Step eight:
 Tie rewards to the performance of the entrepreneurial
unit.
 Finally:
 Implement an evaluation system that allows successful
entrepreneurial units to expand and unsuccessful ones
to be eliminated.
Thank You