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CHAPTER 3

ENTREPRENEURIAL INTENTIONS AND CORPORATE


ENTREPRENEURSHIP

THE INTENTION TO ACT ENTREPRENIALLY


1. ENTREPRENEURIAL INTENTIONS:

The motivational factors that influence individuals to pursue


entrepreneurial outcomes.

Entrepreneurial Intentions Motivational Factors

2. ENTREPRENEURIAL SELF EFFICACY:

The conviction that one can successfully execute the entrepreneurial


process.

Entrepreneurial Self Efficacy Friction of Process

3. PERCIVED DEIREABILITY:

The degree to which an individual has a favorable or unfavorable


evaluation of he potential entrepreneurial outcomes.

Perceived Desirability Evaluation of Outcome


ENTREPRENEUR BACKGROUND AND
CHARACTERISITICS:
There are four important determinants of an entrepreneur background:
Education, Age, Personal Values, Work History

1. EDUCATION:

• Education is important in upbringing of an entrepreneur and helps


in starting the venture and problem solving.
• Importance to be given to finance, strategic planning, marketing,
finance and communication with people.
• Education helps in opportunity identification and exploitation.

2. PERSONAL VALUES:

• On the basis of personal values it is difficult to differentiate an


entrepreneur from a manger or even from general public.
• The personal values include opportunistic, superior product quality,
Quality Services to customers, flexibility, adaptability, high caliber
management, honesty and ethical behavior.

3. AGE:

Chronological Age (Personal Age)


Entrepreneurial Age (Business Age)
(Age from 22-45 years is considered as an ideal age to start the business)
Male start in Early 30’s whereas Female start in Mid 30’s

4. WORK HISTORY:

The past work experience of individual


• That may include dissatisfaction, lack of challenge, frustration and
boredom, as well as motivation and related work experience.
• When venture starts growing managerial experience becomes
more important.
• The previous start up experience is also helpful in prediction and
benchmarking.

Benchmarking:
Compare the performance with the best in the world
ROLE MODELS AND SUPPORT SYSTEMS:
Ideal is not in ur access but role model is in your access and you can share and
discuss with him when you want to.

ROLE MODEL:

• Individual Influencing an entrepreneur’s career choice and style.


• They can be parents, brother or sister, other relatives or entrepreneur.
• Act as a “mentor” through advice, information and guidance
• Serves at a “catalyst”.
• Later on network with similar prevalent is established depending on
frequency, depth, mutual benefits and reciprocity of relationships.

SUPPORT SYSTEM:

1. Moral support network:

• A cheering squad providing psychological support.


• Supporting wives, honest friends, children parents, grand-parents
and uncles who encourage and understand and relatives including.

2. Professional Support Networks:

Individuals helping the entrepreneur in business activities.

a) Mentors:

A coach, advocate and expert in the filed and provides “HOW TO” advise. A
person with which the entrepreneurs can share his problems and success.

b) Business Associates:

Self employed individuals, clients, consultant, suppliers, lawyers, accountants


etc.

c) Trade Association:

Regional and national associations who keep the developments and provide
industry data and may include trade association of respective field e.g. APTMA
and the Chamber of Commerce.

d) Personal Affiliation:
This includes shared hobbies, supporting activities, clubs, civic involvement and
school alumni group. These above support system helps in resource
identification and acquisition and locates opportunities.
Male Vs Female Entrepreneur

Male Female

i) Motivation
Achievement based on
Achievement that is striving to make accomplishment of goals and
things happen and personal independence to do it alone.
independence

ii). Departure Points

Dissatisfaction with current job Job frustration

iii) Sources of Funds:


Personal Assets, savings and
Personal Assets, savings, bank personal loans.
financing, investors and loans from
friends and family.

iv) Occupational Background:


Mid-level management experience,
Recognized specialist, high achiever and service related occupational
experience in the line of work and background and experience in area of
competent in a variety of business work.
functions
v) Personality Characteristics

Opinionated, persuasive, goal oriented, Flexible, tolerant, goal oriented,


innovative, idealistic, high self confidence creative, realistic, medium level of
self confidence

vi) Background

Age 25 – 35, self employed father, first Age 35 – 45, self employed father,
born child first born child
vii) Support Group

Friends, professional acquaintances (e.g. Close friends, spouse, family, women


lawyers, accountants), business professional groups and trade
associates, spouses associations

viii) Type of Business Started


Manufacturing or Construction Service related - education service,
consulting or public relations
MINORITY ENTREPRENEURHIP
A typical minority entrepreneur belongs to a Blue Collar family, first born child,
college degree, related business experience, motivated by achievement,
opportunity and job satisfaction.

ENTREPRENEURIAL INTENTIONS WITH AN EXISTING


ORGANIZATION:
Environmental conditions are motivating people with an organization to act
entrepreneurially.
Characteristics include appropriate reward system, top management support,
explicit goals and appropriate organizational values.

CAUSES FOR INTEREST IN CORPORATE ENTREPRENEURSHIP:

1. Doing your own things and doing it in owns way.


2. Concept of self actualization.
3. Need for expression and freedom.
4. Stimulating and capitalizing on individual potential.
5. Overcoming resistance against flexibility, growth and diversification.
6. Social, cultural and business pressures.
7. New Business venturing: that is creation of new business within an
existing organization (SBU)
8. Innovation: that is constant improvement.
9. Pro-activeness: Initiative and risk taking.

TRADITIONAL CORPORATE CULTURE VS ENTREPRENEURIAL CULTURE:

Characteristics Of Corporate Culture Characteristics of Entrepreneurial


Culture:

1. Rational decisions based on 1 Develop visions and goals.


large data 2 Rewards for action.
2. No risky decisions. 3 Create and develop.
3. Sign offs and approvals 4 Take responsibility and
required. ownership.
4. Adhere to instructions. 5 Flat organizational structure and
5. No mistakes. close
6. Do not fail working relationship.
7. No initiative.
8. Lack of creativity, flexibility and
independence.
9. Hierarchical and established
routines.
CLIMATE FOR CORPORATE ENTREPRENEURSHIP
Characteristics:

i) Organization Operates at frontiers of technology i.e. most modern


technology.
Research and development and new ideas are encouraged.

ii) Experimentations: Trial and errors are encouraged. This culture allows
mistakes and failures in developing new and innovative products.

iii) No Initial Opportunity Parameter: Three are no barriers to new product


development and creation.

iv) Resources are available and access able.

v) Multi disciplined Team Approach: Existence of cross functional teams.

vi) Establish a long term horizon

vii) A volunteer involvement: Self motivated and self selected and every one
is not suitable for this activity.

viii) Reward system is based on attainment of established performance


goals.

ix) Sponsors and Champions are available.

x) Whole hearted support by top-management physically and by providing


resources.
LEADERSHIP CHARACTERISTICS OF CORPORATE
ENTREPRENEUR
1. Understands environment:
Creativity and broad understanding of interval and external environment

2. Visionary and Flexible:


Dream great dreams and overcome obstacles.

3. Create Management Options:


Open, encourage changes and creates something new in organizational
structure.

4. Encourage the Teamwork:


Utilizing multi-disciplined teams and he is a good diplomat.

5. Builds a coalition of supporters:


Encourage team members, motivates them and makes everyone a hero.

6. Encourage Open Discussion:


Allow frankness, open discussion, disagreement and criticism.

7. Persistent:
He can deal with obstacles and frustration.

ESTABLISHING CORPORATE ENTREPRENEURSHIP IN


ORGANIZATION:
It can be done internally but outsider can be used to facilitate the process.

Step 1:

Commitment by top management in order to go through cultural changes, use of


seminars.
Identify initial framework, identify corporate entrepreneurs, selection and training
them

Step 2:

Ideas and general areas that top management is interested in are identified along
with
money, risk, time, profitability and impact on organization.

Step 3:
Use state of the Art technology
Step 4:

Training sessions and general and specific areas of corporate entrepreneurship


are
outlined

Step 5:

Get closer to customers (through Databases)

Step 6:

More productive with fewer resources (concept of lean and mean)

Step 7:

Establish a strong support structure for corporate entrepreneurship that is


flexibility
innovative behavior and sufficient funds.

Step 8:

Tye rewards to the performance of entrepreneurial units.

Step 9:

Implement evaluation system allowing successful entrepreneurial unit to expand


and
unsuccessful to eliminate.

PROBLEMS AND SUCCESSFUL EFFORTS:


PROBLEMS:

1. Difficult to maintain long term commitment.


2. Lack of Freedom to make autonomous decision.
3. Constraint environment.