Entrepreneur Entrepreneurship

Entrepreneur
The Word entrepreneur is derived from the French word entrepredr meaning to undertake In the early 16th century, the Frenchmen who organized and managed military were called Entrepreneurs. In the 17th century, public contractors were called so In the 18th Century, the term was used for dealers who purchases the means of production for combining them into marketable products.thus the term gradually moved into business

Models of Entrepreneurship Development

Psychological models: David McClelland (1961) Achievement Motivation Theory Achievement Affiliation Power Extended

The need for achievement (n-ach) The n-ach person is 'achievement motivated' and therefore seeks achievement, attainment of realistic but challenging goals, and advancement in the job. There is a strong need for feedback as to achievement and progress, and a need for a sense of accomplishment. The need for authority and power (n-pow) The n-pow person is 'authority motivated'. This driver produces a need to be influential, effective and to make an impact. There is a strong need to lead and for their ideas to prevail. There is also motivation and need towards increasing personal status and prestige.

The need for affiliation (n-affil) The n-affil person is 'affiliation motivated', and has a need for friendly relationships and is motivated towards interaction with other people. The affiliation driver produces motivation and need to be liked and held in popular regard. These people are team players.

 Psychological models: (Continued) Everett Hagen Theory of Social change Creative personality Status withdrawal John Kunkel (1965) - Behaviourist model Entrepreneurial behaviour is a function of surrounding social structure, both past and present and can be influenced by manipulating economic and social incentives. Sociological models: Frank W Youngs theory of change based on societys incorporation. Integrated models: T V Rao (1975) proposed Entrepreneurial Disposition Dynamic motive Long term involvement Personal, social and material resources Socio-political system

Stages of Entrepreneurship Development Stimulation Identification Development Promotion Follow up

Entrepreneurial Development Cycle

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Entrepreneurial Development Cycle

Sustaining Activities

Problems faced by Entrepreneurs Internal problems External problems Specific management problems

Intrapreneurship
The American Heritage Dictionary in 1992 acknowledged the popular use of a new word, intrapreneur, to mean "A person within a large corporation who takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation". Intrapreneurship is now known as the practice of a corporate management style that integrates risk-taking and innovation approaches, as well as the reward and motivational techniques, that are more traditionally thought of as being the province of entrepreneurship. Intrapreneurship refers to employee initiatives in organizations to undertake something new, without being asked to do so. Hence, the intrapreneur focuses on innovation and creativity, and transforms an idea into a profitable venture, while operating within the organizational environment.

Entrepreneurial Culture
The term culture as we know it today was introduced in 1871 by the British anthropologist, Sir Edward Tylor. Tylor defined culture as that complex whole which includes knowledge, belief, art, morals, law, custom and any other capabilities and habits acquired by man as a member of society. People acquire culture as a member of society. Three factors are distinct to Culture: 1. Beliefs, arts and customs 2. Passed from one generation to another generation 3. Shared Phenomenon

Types of Culture
Strong (Dominant) Culture Acceptance of common values by majority of employees Significant influence on employee behavior manifesting in reduced turnover, lower absenteeism, increased cohesiveness and positive attitude. Also has drawbacks Discourage diversity, aversion to change. Subculture Found in departments, divisions and geographical areas and reflect the common values & experiences shared by its members. Weak Culture Too many sub-cultures; core value of the organization lost. Lack a corporate identity. Unhealthy Culture Politicized organizational culture. Political lobby tarnishing the image of the organization.