EDS 111

ENTREPRENEURSHIP, MANAGEMENT
AND INTRAPRENEURSHIP
OBJECTIVES
 In this lecture, students should be able to;
 (i) distinguish between entrepreneurship.
 management and intrapreneurship
 (ii) Determine the uniqueness of
intrapreneurship
 (iii) Determine the Reason(s) for the interest
in intrapreneurship.
 (iv) Identify the climate for intrepreneurship
 (v) Differentiate between an intrapreneur ,
entrepreneur and a manager.
Entrepreneurship
 Entrepreneurship as a concept is a process
of the identification of investment opportunity
in one’s environment and bringing resources
together for the formation of an enterprise,
taking the risk involved and maximizing the
gains there on which might be for personal or
social use.
Concept of Entrepreneurship
 The concept of Entrepreneurship is linked
with activities such as;
 (i) Generation of business idea.
 (ii) Identification of investment
opportunities.
 (iii) Making decision towards exploiting
such opportunities.
 (iv) Formulating organizational objectives.
CONT’
 (v) Conducting market research and survey.
 (vi) Putting together of the scarce resources
(Human, Finance and Physical).
 (vii) Establishment of the enterprise.
 (viii) Starting of the actual business
production operations.
CONT’
 Distribution and promotion of the
organisational products/services.
 Organising and managing of the human and
material resources for the attainment of the
objectives of the enterprises
 Bearing of risk and uncertainty
 Innovation and diversification.
Management
 Management is the art of getting things done
through people.
 Management centers on effective application
of managerial functions such as planning,
organizing, controlling, leadership, staffing,
coordination, decision making, etc. towards
achieving defined objective(s) of an
enterprise.
Management Process
 Management begins from where
entrepreneurship stops.
 It is a process that involves;
 Establishment of organizational objectives
 Setting of goals
 Formulation of strategies and policies
Cont’
 Setting of standards and plans
 Establishment of programmes
 Determination of budgets
 Monitoring and evaluation.
CONT’
 Entrepreneurship differs from management
because it involves initiating changes in
production whereas management involves an
on going organization and coordination of the
production process.
Intrapreneurship
 Intrapreneurship is the practice of beginning
and developing of new big ventures within the
structures of an existing organization
(Clifford,1985)
Cont’
 Intrapreneurship is a corporate
entrepreneurship whereby an organization
seeks to expand by exploring new
opportunities through new combination of its
existing resources (Stoner,1999).
Concept of Intrapreneurship
 Intrapreneurship is a concept that is closely
related to entrepreneurship emphasizing the
entrepreneurial process (entrepreneurs carry
out new combinations) and innovations (Gutt-
Ginsberg, 1990).
 Intrapreneurship takes place within the
organization.
 It actually starts from where management
stops.
Cont’
 Intrapreneurship as a concept does not just
emerge.
 Its emergence is a function of the conscious
effort of an entrepreneur and management in
taking the decision to move the company
forward.
 It encourages creativity and innovation within
an enterprise.
Reasons for the interest in
Intrapreneurship
 The baseline of intrapreneurship is continuity
and this can be obtained through innovation.
Innovation in this context may include;
product innovation, machine innovation or
market innovation.
Cont’
 Competition resulting from the availability of
rivalries and product substitutes in the
industry provokes innovation which eventually
ends in intrapreneurship.
 To cope with the high degree of competition
pose by the new entrants and existing firms in
the industry, innovation is inevitable.
CONT’
 Innovation therefore involves creation of new
ventures and conducting of R&D activities
aiming at improving organization's
competitive position and performance.
Intrapreneurial Process
 The process of intrapreneurship involves;
 (1) The phenomenon of Intrapreneurship.
 (2) The prerequisites of intrapreneurship.
 (3) The outcomes of intraprneurship.
The phenomenon of intrapreneurship
 According to Guth-Ginsberg (1990); Zahra
(1995) the phenomenon of
intrapreneurship results from the
company’s commitment to innovation may
be either in type A or type B manifestation.
CONT’
 The type A manifestation of intrapreneurship
involves strategic renewal which has the
components of;
 (i) Mission reformation
 (ii) Reorganization or restructuring
 (iii) System-wide changes
Cont’
 (i) Mission reformation involves redefinition of
a firm’s mission through creative
redeployment of resources.
 (ii) Reorganization involves the adoption of
new organizational structures that
promote innovation and venturing.
 (iii) System-wide changes which usually
refocus company’s basic values enhance
creative organizational learning and
problem solving.
Cont’
 The type B manifestation involves has the
components of;
 (i) Product innovation
 (ii) Proactiveness
 (iii) Risking taking
CONT’
 (i) Product innovation refers to the ability of a
company to create new products or to modify
existing ones to meet the current or future market
demands.
 (ii) Proactiveness refers to a company’s capacity to
compete in the markets by introducing new
products, services, or technologies.
 (iii) Risk taking refers to company’s willingness to
engage in business ventures and strategies in
which the outcome may be highly uncertain.
The Prerequisites of Intrapreneurship
 This has to do with the factors that stimulate
intrapreneurship. These factors according to
Guth-Ginsberg (1990) may include;
 (i) External environment
 (ii) Organizational setting and its strategies
 (iii) Management activities
 (iv) Employees’ attitude
CONT’
 (i) External environment may be dynamic,
hostile or heterogeneous. The more dynamic
or hostile the external environment is the
more emphasis a company places on
intrapreneurship.
 (ii) Organizational setting may include
organizational culture, policies, the way
work is organized, power and
responsibility, division of work etc.
CONT
 (iii) Management activities ensure that the
organization has a clear and
understanding vision and direction.
 These may include reward system,
resources availability and allocation.
 (iv) Employees’ attitudes to the organizational
setting and management activities their
skills determine manifestation of
intrapreneurship.
 Intrapreneurship can be promoted by
encouraging employees to think like
entrepreneurs by giving them freedom and
permission to pursue their projects and the
company’s activities without bogging down in
bureaucratic inertia (Donald et al, 1993).
The Outcome of Intrapreneurship
 Every innovative activity enhances
company’s competitive advantage.
 The outcome of intrapreneurship include;
 (i) Improvement in the company’s
competitive position and performance.
 (ii) Satisfaction of customers’ needs
Cont’
 (iii) Job satisfaction.
 (iv) Improved financial performance.
 (v) Enforcement of employees’ life.
Difference between Entrepreneur,
Manager and intrapreneur
Wilken (1979) argued that “entrepreneurs’
motives and goals center on wealth, power,
prestige, security, self esteem and services.
While managers’ motives center on
achievement of the organizational goals and
objectives through strategy formulation and
implementation”.
CONT’
 An entrepreneur sees a need, then brings
together the manpower, materials and capital
required to meet that need.
 A manager as an agent of organisation only
walks in line with the organisational defined
goals and mapped out plans.
 An intrapreneur is an employee emphasizing
the individual characteristics of an
entrepreneur in a existing organization.
CONCLUSION
 Entrepreneur, manager and intrapreneur
complement themselves for the achievement
of organizational goals.
 An entrepreneur initiates business ideas,
manager ensures organizational objectives
are accomplished while intrapreneur ensures
customers’ satisfaction and movement of the
organization to the next level.
THANK YOU