Entrepreneurial Intentions

Entrepreneurial Intentions

 The motivational factors that influence individuals to pursue entrepreneurial outcomes

Entrepreneurs’ Background and characteristics

 Education
 Age
 Past Work Experience
 Role Models and Support Systems
 Moral Support Network (Psychological Support to an entrepreneur)
 Professional Support Network
Key Elements in Entrepreneur’s Background

 Supportive childhood family environment.

 Having parents who are self-employed helps.
 Education is important.
 Aged 22-45 when starting venture.
 Work history: dissatisfied with company job but has technical knowledge.
Role Models

Parents, relatives, friends or entrepreneurs in the community.

 may serve as mentors.
 may help establish a moral and professional support network.
 invaluable source of counsel and advice
Entrepreneur Vs. Inventor

 An inventor creates something for the first time. While the entrepreneur falls in love with
the new venture, the inventor falls in love with the invention and often requires the
expertise of an entrepreneur to launch a new venture
 Historians classify Albert Einstein as an inventive genius and Henry Ford as an
entrepreneurial genius. Do you agree or disagree? Why?
Managerial vs Entrepreneurial Decision
Making
1. Strategic Orientation
 The entrepreneur’s strategic orientation depends on his or her perception of the opportunity. This
orientation is most important when other opportunities have diminishing returns accompanied by rapid
changes in technology, consumer economies, social values, or political rules. When the use of planning
systems as well as measuring performance to control current resources is the strategic orientation, the
administrative (managerial) domain is operant, as is the case with many large multinational organizations.

2. Commitment to Opportunity
 In terms of the commitment to opportunity, the second key business dimension, the two domains vary
greatly with respect to the length of this commitment. The entrepreneurial domain is pressured by the
need for action, short decision windows, a willingness to assume risk, and few decision constituencies
and has a short time span in terms of opportunity commitment. This administrative (managerial) domain
is not only slow to act on an opportunity, but once action is taken, the commitment is usually for a long
time span, too long in some instances. There are often no mechanisms set up in companies to stop and
reevaluate an initial resource commitment once it is made—a major problem in the administrative
(managerial) domain.
3. Commitment of Resources
 An entrepreneur is used to having resources committed at periodic intervals that are often based on certain tasks or
objectives being reached. These resources, often acquired from others, are usually difficult to obtain, forcing the
entrepreneur to maximize any resources used. This multistage commitment allows the resource providers (such as
venture capitalists or private investors) to have as small an exposure as possible at each stage of business development
and to constantly monitor the track record being established. Even though the funding may also be implemented in
stages in the administrative domain, the commitment of the recourses is for the total amount needed. Administratively
oriented individuals respond to the source of the rewards offered and receive personal rewards by effectively
administering the resources under their control.

4. Control of Resources
 Control of the resources follows a similar pattern. Since the administrator (manager) is rewarded by effective resource
administration, there is often a drive to own or accumulate as many resources as possible. The pressures of power, status,
and financial rewards cause the administrator (manager) to avoid rental or other periodic use of the resource. The
opposite is true for the entrepreneur who—under the pressure of limited resources, the risk of obsolescence, a need for
flexibility, and the risks involved—strives to rent, or otherwise achieve periodic use of, the recourses on an as-needed
basis.

5. Management Structure
 The final business dimension, management structure, also differs significantly between the two domains. In the
administrative domain, the organizational structure is formalized and hierarchical in nature, reflecting the need for
clearly defined lines of authority and responsibility. The entrepreneur, true to his or her desire for independence employs
a flat organizational structure with informal networks throughout
Establishing a Culture for Corporate
Entrepreneurship
 Corporate Entrepreneurship means entrepreneurial action within an established organization
 In establishing an entrepreneurial environment within an established organization, certain factors and leadership
characteristics need to be present which are
1. Organization operates on frontiers of technology
2. New ideas encouraged
3. Trial and error encouraged
4. Failure Allowed
5. No Opportunity Parameters
6. Resources Available and Accessible
7. Multidiscipline teamwork approach
8. Long Time Horizon
9. Volunteer Program
10. Appropriate Reward System
11. Sponsor and Champions available
Leadership Characteristics of Corporate
Entrepreneurs
1. Understands the Environment
2. Is Visionary and Flexible
3. Creates Management Options
4. Encourages Teamwork
5. Encourages Open Discussion
6. Builds a coalition of supporters
7. Persists
ENTREPRENEURSHIP AND ROLE
OF ENTREPRENEURS IN THE
DEVELOPMENT OF NEPAL??
12 The Entrepreneurial Process

Starting the Venture:

Identifying
Exploring the  Researching Feasibility
Opportunities/Possible
Entrepreneurial  Planning the Venture
Competitive Advantage
Context  Organizing the Venture
 Launching the Venture

Managing the Venture:

 Managing Processes
 Managing People
 Managing Growth
 Special Issues
Ethics and responsibilities of entrepreneurs

 While we are talking about the business ethics, there are three things that need
consideration:
(1)    Avoid breaking criminal law in one’s work related activity
(2)    Avoid action that may result in civil law suits against 5the company
(3)    Avoid actions that are bad for the company image.
Promoting entrepreneurship in Nepal

 Lately entrepreneurship has become a buzzword in Nepal

 In order to promote entrepreneurship in Nepal, factors that should be considered
1. Understanding the real problems
2. Ensure Safety of Life and Property
3. Infrastructural development
 Motto for Entrepreneurs
15

Conceive it
Believe it
Achieve it!