Chapter 2 Entrepreneurial Intentions and Corporate Entrepreneurship Vishnu

Chapter 2, Entrepreneurial Intentions and Corporate Entrepreneurship Vishnu Parmar, IBA University of Sindh

Intention to Act Entrepreneurially • Entrepreneurial Intentions: The motivational • • factors that influence individuals to pursue entrepreneurial outcomes Entrepreneurial Self-efficacy: The conviction that one can successfully execute the entrepreneurial process Perceived Desirability: The degree to which an individual has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes

Entrepreneur 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 3 -2 üSupportive childhood family environment. üHaving a father who is selfemployed helps. üEducation is important. üAged 22 -45 when starting venture. üWork history: dissatisfied with company job but has technical knowledge. Bill Gates Mc. Graw-Hill/Irwin © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

3 -3 Role Models parents, relatives, friends or entrepreneurs in the community. ümay serve as mentors. ümay help establish a moral and professional support network. üinvaluable source of counsel and advice. Who are your entrepreneurial role models? Mc. Graw-Hill/Irwin © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Minority Entrepreneurs • Male vs Female • Other communities like Asian American, African, Hispanic • Bohra, Memon, Dewan, Chinoti, etc

Male Entrepreneur Characteristics Motivation Departure Point Make Things Happen, Role In Corp. Not Important, Desire To Be In Control Dissatisfied With Present Job, Sidelines, Discharged/Laid-Off, Acquisition Opportunity Fund Sources Personal Assets/Savings, Bank, Investors, Family/Friends Loans Occupational Background Experience, Recognized Specialist, Competent In Business Functions Personality Background Opinionated/Persuasive, Goal-Oriented, Innovative/Idealistic, Self-Confident, Energetic Age = 25 -35, Father Self-Employed, College-Educated, Firstborn Child Support Groups Friends, Professional Acquaintances (Lawyers, Accountants), Associates, Spouse Business Started Manufacturing/Construction

Female Entrepreneur Characteristics Motivation Departure Point Fund Sources Accomplishment Of Goal, Do It Alone Job Frustration, Recognition Of Opportunity, Change In Personal Circumstance Personal Assets/Savings, Personal Loans Occupational Background Experience, Mid-Management/Administrative Experience, Service Occupation Personality Flexible/Tolerant, Goal-Oriented, Creative & Realistic, Self-Confident, Energetic, Social Background Age = 35 -45, Father Self-Employed, College Educated (Liberal Arts), Firstborn Child Support Groups Friends, Spouse, Family, Women’s Prof. Groups, Trade Associations Business Started Service-Related

3 -5 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? Mc. Graw-Hill/Irwin © 2002 by The Mc. Graw-Hill Companies, Inc. All rights reserved.

Managerial vs Entrepreneurial Decision Making • Entrepreneurial Management is distinct from traditional management in terms of eight dimensions (Table 2. 1) 1. 2. 3. 4. Strategic Orientation Commitment to Opportunity Commitment to resources Control of Resources

Managerial vs Entrepreneurial Decision Making 5. 6. 7. 8. Management Structure Reward Philosophy Growth Orientation Entrepreneurial Culture

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 (Table 2. 3)

Table 2. 3 (Characteristics of an Entrepreneurial Environment) 1. Organization operates on frontiers of 2. 3. 4. 5. 6. technology New ideas encouraged Trial and error encouraged Failure Allowed No Opportunity Parameters Resources Available and Accessible

Table 2. 3 (Characteristics of an Entrepreneurial Environment) 7. Multidiscipline teamwork approach 8. Long Time Horizon 9. Volunteer Program 10. Appropriate Reward System 11. Sponsor and Champions available 12. Support of top management

Leadership Characteristics of Corporate Entrepreneurs 1. 2. 3. 4. 5. 6. 7. Understands the Environment Is Visionary and Flexible Creates Management Options Encourages Teamwork Encourages Open Discussion Builds a coalition of supporters Persists