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Education does not determine whether an entrepreneur will create a new business to exploit the discovered opportunity.
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Role models serve in a supportive capacity as mentors during and after launch of a new venture.
Entrepreneurs need to establish connections and eventually networks early in the new venture formation process. Strength of the ties between the entrepreneur and any individual in the network is dependent upon the frequency, level, and reciprocity of the relationship.
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Moral-Support Network
Individuals who give psychological support to an entrepreneur. Entrepreneurs need to establish a moral-support network of family and friendsa cheering squad.
Friends can provide:
Advice. Encouragement. Understanding. Assistance.
Relatives can be strong sources of moral support, particularly if they are also entrepreneurs.
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Professional-Support Network
Entrepreneurs need advice and counsel throughout the establishment of the new venture which can be obtained from:
Mentors Business associates Trade associations Personal affiliations
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Minority Entrepreneurs
Male vs Female Other communities like Asian American, African, Hispanic Bohra, Memon, Dewan, Chinoti, etc
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Departure Point
Fund Sources
Occupational Background
Departure Point
Fund Sources
Occupational Background
Personality
Background Support Groups
Business Started
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Minority Entrepreneurship
Research on minority entrepreneurship has been sporadic. Problem is in understanding differences in:
Behavior of various ethnic groups in the context of the environment. Economic opportunities (or lack thereof) available in the societal context.
Future research needs to focus on the overall process used by ethnic entrepreneurs in developing and maintaining an enterprise.
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Fostering environment
Enhances organizational members perceptions of entrepreneurial action as both feasible and desirable.
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Social reasons:
Increasing interest in doing your own thing and doing it on ones terms. New search for meaning and impatience involved, causes more discontent in structured organizations.
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Example: Xerox
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Corporate Entrepreneurship (2 of 2)
Increase in corporate entrepreneurship reflects an increase in social, cultural, and business pressures.
Hypercompetition has forced companies to have an increased interest in certain areas:
New product development. Diversification. Increased productivity. Decreasing costs by methods such as reducing the companys labor force.
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Entrepreneurial Endeavors
Consist of the following four key elements:
New business venturing: corporate venturing; refers to creation of a new business within an existing organization. Innovativeness: refers to product and service innovation, with emphasis on development and innovation in technology. Self-renewal: transformation of an organization through renewal of the key ideas on which it is built. Proactiveness: includes initiative and risk taking, competitive aggressiveness and boldness particularly reflected in orientations and activities of top management.
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Table 3.2
Source: An extensively modified version of a table in G. Pinchot, Intrapreneuring (New York: Harper & Row, 1985), pp. 5456.
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Visionary and flexible. Creates management options. Encourages teamwork. Encourages open discussion. Builds a coalition of supporters. Persistence.
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Step Three: use of technology to ensure organizational flexibility. Step Four: imanagers who will train employees as well as share their experiences.
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Step Four:
Identify interested managers to train employees and share their experiences.
Step Five:
Develop ways for organization to get closer to its customers.
Step Six:
Learn to be more productive with fewer resources.
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Step Eight:
Involve tying 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.
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Examples of companies that have adopted their own version of the implementation process to launch new ventures successfully:
Minnesota Mining and Manufacturing (3M). Hewlett-Packard (HP). IBM.
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